NAK.L Regulatory News (NAK)

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

25 May 2018

Nakama Group plc

("Nakama" or the "Group")

Board change, appointment of part-time Finance Director and corporate update

Board change

Nakama Group plc (AIM: NAK) announces John Higham, Non-Executive Director and Deputy Chairman has informed the Board that he intends to retire and proposes to step down from the Board with immediate effect. John was chairman of the Audit Committee and a member of the Remuneration Committee. The Company intends to appoint a new non-executive director and further announcements will be made in due course.

John founded Highams in 1983 and was Chief Executive of the Group until April 2000 when he took up his role as Non-Executive Director. The Board would like to thank John for his service to the company.

Appointment of part-time Finance Director and secondment agreement

Following the detailed review of the Group's finance function, which the Board undertook with the assistance of the Company's largest shareholder, Sheffield Haworth Limited ("Sheffield Haworth"), the Company has agreed to appoint Patrick Meehan, ACCA, as interim finance director on a part-time basis. The appointment is a non-Board position. Patrick Meehan is the Finance Director of Sheffield Haworth and his services will be supplied to Nakama by Sheffield Haworth pursuant to a secondment agreement.

In accordance with the terms of the secondment agreement, Patrick Meehan's secondment will commence on 4 June 2018, at a rate of £750 per day and will be terminable by either party on four weeks' prior written notice or in accordance with certain other standard conditions.

Corporate update and business referral agreement

Further to the announcement on 9 April 2018, the Company can confirm that all payment plan obligations to the Australian Tax Office are being paid as they fall due. The Board continues to closely monitor the Group's working capital obligations.

Nakama continues to benefit from its relationship with Sheffield Haworth, which has resulted in Nakama gaining access to opportunities previously unavailable to it. Nakama has entered into a business referral agreement with Sheffield Haworth which governs how revenues should be shared between the parties in the event of cross-referrals. The business referral agreement sets out that between 15 per cent. and 30 per cent. of the permanent fees generated from any such introduction, will be allocated to the introducing consultant's revenues. So far, the association with Sheffield Haworth has brought: new client wins in both Singapore and Hong Kong; and new preferred supplier agreements being signed in the UK.

As at 31 March 2018, under the terms of the business referral agreement Nakama has paid approximately £5,000 to Sheffield Haworth and Sheffield Haworth has paid approximately £100,000 to Nakama.

It is anticipated that further payments will be made and received under the terms set out in the business referral agreement, the receipt of which would constitute a transaction with a related party.

Related Party Transactions

As Sheffield Haworth is a substantial shareholder in the Company (as defined in the AIM Rules for Companies ("AIM Rules")), the entry into the secondment agreement and the receipt of further revenues under the business referral agreement (the "Arrangements") constitute transactions with a related party under the AIM Rules. The Directors of the Company (save for Tim Sheffield, who is a controlling shareholder of Sheffield Haworth), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider the Arrangements to be fair and reasonable insofar as the Company's shareholders are concerned.

Tim Sheffield, Chairman of the Company, commented

"On behalf of the Board I would like to thank John for the significant contribution that he has made to the Group over the last 35 years. We have enjoyed working with John and we wish him well for the future.

"We welcome Patrick to the business, whom I know to be a strong and capable finance director from his role at Sheffield Haworth. Patrick brings valuable knowledge and experience and will be able to assist the Board in strengthening the finance function and ultimately delivering on our strategy."

Enquiries:

Notes to Editors

Nakama Group plc is a recruitment group of two branded solutions placing people into specialist and management positions;

· Nakama operates in the digital, creative, media, marketing and technology sectors all over the world from offices in the UK, Asia and Australia.

· The Highams brand specialises in the Financial Services sector, specifically Business Change and IT in Insurance and Wealth Management currently in the UK and Europe.

Nakama Group plc was created in October 2011 through the acquisition of Nakama Ltd UK and its subsidiaries in Hong Kong, Singapore, Sydney and Melbourne by AIM listed Highams Systems Services Group plc.