LONDON (Alliance News) - Nakama Group PLC on Tuesday swung to an interim profit as its cost-cutting strategy delivered results.
Nakama shares were up 25% trading at 1.25 pence each on the back of the news.
For the six months to September 30, the recruitment consultancy firm posted pretax profit of GBP186,000 compared to a pretax loss of GBP437,000 a year ago.
This was on the back of reduced expenses as the company cut its headcount by 23% to 57, improving its cost base. Administrative costs fell to GBP2.5 million from GBP3.1 million a year ago.
Meanwhile, revenue reduced slightly to GBP8.0 million from GBP2.3 million and net fee income remained flat at GBP2.7 million in the half.
Chief Executive Officer Andrea Williams said: "Whilst the net fee income has not seen any significant changes from the same period last year we have created a more focused and lean operation and are pleased to show a return to profitability in the first half of 2018. Having posted a loss before tax of GBP437,000 in the first half of 2017, I am pleased with the improvement seen this year to date."
Looking ahead, the company said it expects cost-cutting activities to continue to deliver better returns as it focuses on "owning the markets in which it operates".
Furthermore, Nakama said it appointed Patrick Meehan as finance director. He has already been working for Nakama as interim finance director on a part-time basis working with board to deliver the cost-savings programme.