NAK.L Regulatory News (NAK)

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR")

 13 November 2020

 Nakama Group plc

("Nakama" or the "Company")

Trading and corporate update

Nakama (AIM:NAK), the AIM quoted recruitment consultancy working across the UK and Asia providing recruitment and related services for the web, interactive, digital media, IT and business change sectors, provides a trading and corporate update.

As noted in the Company's announcement of 21 September 2020, 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 (including the Coronavirus Jobs Retention Scheme), Hong Kong and Singapore in order to preserve cash and retain the businesses ability to continue to trade.

Recent trading has been in line with management's expectations, as re-set following the onset of the COVID-19 pandemic, but market conditions remain difficult particularly in light of a second wave of the pandemic and continued uncertainty following new national lockdowns.

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. 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.

As such and noting that the UK government support schemes are due to end in Q1 2021, the Board is now exploring a number of options for the Company and its businesses and further announcements will be made as and when appropriate.

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