Nakama Group Plc Trading Update and FY Results deadline extension (5044Z)
September 21 2020 - 2:00AM
UK Regulatory
TIDMNAK
RNS Number : 5044Z
Nakama Group Plc
21 September 2020
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR")
21 September 2020
Nakama Group plc
("Nakama" or the "Group")
Update on trading and current financial position
Extension of reporting deadline for publication of audited
accounts for year ended 31 March 2020
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, today updates shareholders on its current trading
and current financial position.
As with most businesses, 2020 has been a challenging and
unprecedented period for Nakama. Since March 2020 the focus of the
business has been to ensure the health and safety of all its
employees and that the Group continues to operate to the best of
its abilities for all its clients and stakeholders. The Nakama
board would like to thank all the Group's staff for their
exceptional commitment and hard work over this period.
Trading update
The impact of the COVID-19 pandemic had an immediate and
significant impact on the Group's trading activities since the
start of 2020. Revenues in all the Group's businesses have declined
on the comparable period for 2019 and this has had a material
impact on the Group's cash and financial position. For the year
ended 31 March 2020, the Nakama board currently anticipates that
the Group will announce revenues of GBP9.72 million, a 28% decrease
on the year ended 31 March 2019 (GBP13.41 million). During the
financial year 2019/20, the Group saw significant management
changes resulting in the departure of the managing directors of
Nakama London and the Hong Kong and Singapore businesses.
Replacements were quickly found for all three positions, resulting
in a relatively smooth transition.
Since 31 March 2020, each of the Group's four businesses have
continued to face trading challenges but they have continued to
operate and take on assignments. The UK businesses of Highams and
Nakama have seen business volumes reduce due to the initial, albeit
revised, changes to IR35 and then the onset of COVID-19. Both
business units continue to operate in difficult market conditions
but are well placed to take advantage of any market upturn. The
trading environment in both Hong Kong and Singapore has been
broadly similar to the UK due to COVID-19. However, with local
management in place and a strategy of broadening our international
reach, trading has been maintained, albeit at reduced levels.
Nakama continues to focus on digital, technology and
transformation recruitment which means we are well positioned with
our clients and candidates as these roles are becoming increasingly
critical to corporate strategy. The Nakama board remains confident
that the business is ready to take advantage of any market
improvement in the future.
Financial position
The Group has utilised a number of government initiatives in the
UK (including the Coronavirus Jobs Retention Scheme), Hong Kong and
Singapore to ensure the Group's businesses preserve their cash and
retain their ability to continue to trade. All of the Group's
businesses responded quickly and intelligently to remote working
and this transition has been relatively seamless and undisruptive.
As a consequence, the Group's cash position is currently stable,
and the Group is able to meet its obligations as they fall due.
The Group's cash position at 31 March 2020 was GBP189,887 and
GBP307,639 at 31 August 2020.
The lasting nature of the pandemic and associated business
uncertainty will, in the opinion of the Nakama board, continue
throughout 2020 and trading activity at all of the Group's
businesses will continue to be affected in a negative way. As the
various government support schemes are ended the Group will face a
number of trading and cashflow challenges and without access to
additional capital the Group's working capital situation may
deteriorate.
The Nakama board will continue to manage the Group's businesses
in accordance with market conditions and will give further updates
accordingly.
Annual report and accounts
Due to the COVID-19 pandemic, Nakama will not be able to post
its annual audited report and accounts for the financial year ended
31 March 2020 (the "Annual Report") to shareholders by 30 September
2020. Nakama has applied to AIM Regulation, pursuant to the
guidance provided by AIM Regulation in "Inside AIM" on 26 March
2020, for an additional period of up to 3 months to publish the
Annual Report. AIM Regulation has granted the extension and
therefore Nakama will publish the Annual Report by no later than 31
December 2020.
The Company has been granted an extension of time to file the
Annual Report with the Companies House until 31 December 2020.
Enquiries:
Nakama Group plc www.nakamaglobal.com
Tim Sheffield, Chairman 00 44 20 7236 2400
Robert Thesiger, Chief Executive Officer 00 44 20 3588 4560
Allenby Capital Limited (Nominated
Adviser and Broker) 00 44 20 3328 5656
Nick Naylor / Liz Kirchner (Corporate
Finance)
Guy McDougall (Sales)
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
and Asia; and
-- 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 and
Singapore by AIM listed Highams Systems Services Group plc.
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