Nakama Group swings to profit in 'promising start' for turnaround plan

(Sharecast News) - Nakama Group leapt on Tuesday after the company swung to an interim profit following a cut in headcount to counteract struggling revenue.Profit before tax for the six months ended 30 September amounted to £0.2m, with the company swinging from a £0.4m loss on-year, as administrative costs dropped by 22% to £2.5m as the AIM traded company reduced its headcount by 23% to 57.The recruitment consultancy also reported that revenue dropped by 3% to £8m, though cost of sales was reduced by 3% to £5.4m which kept net fee income constant at £2.7m.Cash and cash equivalents at 30 September had dropped by 22% to £0.2m, compared with the same point last year.Andrea Williams, chief executive of Nakama, said: "As the first phase of our turnaround plan starts to bear fruit, we are very pleased with the results of the first half of this financial year. As we have committed to focusing our efforts on core markets, we have had to implement changes across most of our business units, early results are promising."Williams added that she expected headcount to be reduced further in the short-term before an increase in the next financial year."This is a positive start to our turn-around plan and I would like to thank all my colleagues for their hard work and commitment to the business. I would also like to thank our candidates and clients for their continued support across our key markets and to our supportive shareholders."Nakama's shares were up 35.00% at 1.35p at 1140 GMT.