13th Dec 2019 09:02
(Alliance News) - Nakama Group PLC said Friday it needs more capital amid challenges in both the UK and Hong Kong.
Caterham-based Nakama's shares were 29% lower in London at 0.85 pence each on Friday.
For the six months ended September 30, the recruitment consultancy firm posted revenue of GBP4.8 million compared to GBP8.0 million in a comparative period a year ago.
Profit before tax reduced to GBP20,000 compared to GBP186,000 a year before.
Nakama said its performance in the first half was a "significant reduction" on the same period a year before, due to "employment engagement" challenges.
However, the company said it has now made key decisions relating to staff and implemented a performance management program, resulting in a renewed focus on its core markets.
The company warned of challenges ahead due to its tight cash position, caused primarily by payment collection issues in Hong Kong.
"The primary cause of this is as a result of the political and economic unrest in Hong Kong which has led to unscheduled delays in the group receiving customer payments," Nakama said.
The company said it requires an injection of capital to implement its short-term growth plans, and it is now considering a number of restructuring options to improve its cash position.
The company said UK remains a particularly challenging recruitment environment with the general election, Brexit, and proposed changes to IR35 anti-avoidance tax legislation all combining to produce an uncertain outlook for the group.
By Loreta Juodagalvyte; [email protected]
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