Half-year Report

For release at 07:00am on 1 December 2016

Nakama Group plc (AIM: NAK)

 ("Nakama" or "the Group")

"The AIM quoted recruitment consultancy working across UK, Europe, Asia and Australia providing staff for the Web, Interactive, Digital media, IT and Business Change sectors

announces its interim results for the six months ended 30 September 2016"

INTERIM RESULTS

Highlights

· Loss before tax £63,000 (2015: profit £169,000).

· Net fee income (NFI) of £2.9 million (2015: £3.0 million).

· Contractor revenue increased by 4.3 per cent to £9.3 million (2015: £8.9 million).

· Revenue across the APAC region increased by 14.7 per cent.

Rob Sheffield, CEO of Nakama, commented:

"The results are in line with our expectations for the first six months after a period of change and development."

"We see a stronger second half of the year from the Group as a whole this year compared to a softer second half last year. The outcome for the period reflects the Group's commitment to strengthen existing business lines whilst supporting new ones."

"We continue to recruit new heads into those markets where there is potential for NFI and profit growth. The Group strategy for growth in all regions is a key focus aligning all offices and enabling the business to grow globally."

Enquiries:

NOTES TO EDITORS

About Nakama Group plc

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 and North America.

· 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, Sydney and Melbourne by AIM listed Highams Systems Services Group plc.

Since forming in 2011, the Group has opened offices in Singapore and New York for Digital, Creative, Media and Marketing.

Our aim is to offer all our services from both our brands in all our locations.

CHIEF EXECUTIVE OFFICER'S STATEMENT

I present the unaudited results of Nakama Group plc for the first six months of the financial year. The first half year showed a small increase in revenue across the Group, but a loss before tax of £63,000 (2015: profit £169,000), reflecting the investments made both in the UK, the USA and to Group infrastructure in the latter part of the last financial year.

Financial results

The Group revenue of £10.9 million (2015: £10.6 million) shows a small increase of 2 per cent for the period.

Segmental analysis shows that we have increased our revenue in the APAC region by £552,000 (14.7 per cent). UK revenues decreased slightly due to softer trading conditions.

Net Fee Income ("NFI") in the period for the Group was £2.9m (2015: £3.0m), which was a decrease of 4 per cent on last year. The first half of the financial year showed strong NFI performances in our Hong Kong and Sydney business units.

Administrative costs for the Group increased from £2.8m last year to £2.9m in the first half of this financial year driven by investment in infrastructure and systems.

Our markets

Market conditions in the period became softer for our UK businesses, which has since been addressed by a refocusing on service lines within both UK entities and a strengthening of the management teams in both businesses. Elsewhere, our businesses in Hong Kong and Australia performed strongly. We have seen a softer market in Singapore and South East Asia within our core markets and the business has moved to address this.

We are in line with our internal budgets for the first six months after a period of change and development. We have reasonable expectations that the UK businesses will perform better in the second half of the year after a strengthening of the management teams. In APAC, we expect a similar performance to the first six months from our businesses in Hong Kong and Sydney and an improved performance from our Singapore business in the second half, with increased opportunities for growth in the medium and long term.

The current focus for the Group is to maximize the returns from our investment in all our businesses following on from the strategic review last September and to increase the productivity of the business.

We see a stronger second half of the year from the Group as a whole compared to a softer second half last year. The outcome for the period reflects the Group's commitment to extend its international footprint and to strengthen existing business lines whilst supporting new ones.

Outlook

We continue to recruit new heads into those markets where there is potential for NFI and profit growth.

The Group strategy for growth in all regions is a key focus aligning all offices and enabling the business to grow globally.

Rob Sheffield

Chief Executive Officer

1 December 2016

Statement of changes in equity

At 30 September 2016

Notes to the Interim Report

1. Basis of Preparation

This unaudited consolidated interim financial information has been prepared in accordance with Financial Reporting Standard 100 Application of Financial Reporting Requirements ("FRS100") and Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101"). The Group adopted IFRS 101 in the financial year to March 2016 having previously applied UK accounting standards. Other than the adoption of reduced disclosures there was no material effect of applying IFRS 101 for the first time. September 2016 is unreviewed and unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 March 2016 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-498(3) of the Companies Act 2006.

The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

2. Earnings per share

3. Segmental Analysis

The Board does not review assets and liabilities by segment.