(Alliance News) - Recruiter Nakama Group PLC on Wednesday reported that it swung to annual profit but revenue fell year-on-year.
For the financial year ended March 31, Nakama recorded a 20% revenue fall to GBP13.4 million from GBP16.8 million, reflecting the decision to close its Australian operations. Net fee income fell by 22% to GBP4.1 million from GBP5.3 million.
However, the company made a pretax profit of GBP354,000, improved from a GBP1.5 million loss in financial 2018. The swing to profit was helped by the non-repeat of an GBP487,000 impairment charge and by staff costs falling 18% to GBP3.3 million from GBP4.1 million.
Also contributing to the profit swing was the performance of Nakama's Asia Pacific operating division, of which the discontinued Australian unit was part. Pretax profit in the region totalled GBP36,000, improving from a GBP705,000 loss last year.
Nakama said: "After a difficult period for the company, over the past year, the business has undergone further change and transformation.
"During the trading period, the group has become more disciplined in its financial management and more focused on improving its core operating business. This resulted in the closure of the Sydney and Melbourne offices and refocusing our energies on UK, and Asia Pacific regions."
Revenue in the Asia Pacific region fell by 79% to GBP3.0 million from GBP5.3 million and in the UK, by 9.1% to GBP10.4 million from GBP11.5 million.
Looking ahead, Nakama said trading so far this year has been in line with expectations, but guided that it will incur exceptional costs as it continues its restructuring.
Shares in Nakama were 4.0% higher at 0.91 pence each in London on Wednesday afternoon.