(Alliance News) - Nakama Group PLC said Friday its recent trading has been in line with management expectations but remains "difficult", and it is concerned about cashflow.
Shares in recruitment consultancy were down 29% in London on Friday at 0.50 pence each.
Nakama previously had guided for revenue in the year ending March 31 to drop 28% year on year to GBP9.7 million from GBP13.4 million.
"The Covid-19 pandemic had an immediate and significant impact on the group's trading activities. The company has utilised a number of government initiatives in the UK, Hong Kong and Singapore in order to preserve cash and retain the businesses ability to continue to trade," Nakama said.
Rising virus infections has led to a second national lockdown in the UK, which Nakama said means its "market conditions remain difficult".
"It remains the board's view that as the various government support schemes are ended, the company will face a number of trading and cashflow challenges and without access to additional capital the group's working capital situation may deteriorate," Nakama said.
It added: "The company's largest shareholder has made it clear to the board that they would not support a fundraise and would vote against the necessary shareholder resolutions to issue new shares."
The firm noted UK government support schemes are due to end at the end of the first quarter of 2021, so it is "exploring a number of options for the company and its businesses".
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.