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TIDMNAK
RNS Number : 8230R
Nakama Group Plc
10 November 2011
For release 07:00 10 November 2011
Nakama Group plc (AIM: NAK)
Formerly
Highams Systems Services Group plc
("Highams" or "Nakama" or "the Group")
The AIM quoted technology recruitment consultancy, specialising in IT staffing to the financial services sector, and digital technology and interactive internet media staffing to international markets, announces its interim results for the six months ended 30 September 2011.
INTERIM RESULTS
For the six months ended 30 September 2011
Highlights
-- Revenue grew by 8% to GBP4.78m (2010: GBP4.41m)
-- Profit before tax increased substantially by 23% to GBP152,000 (2010: GBP123,000)
-- Net fee income (NFI) rose by 15% to GBP888,000 (2010: GBP770,000)
-- NFI percentage increased to 18.55% (2010: 17.46%)
-- EPS up 22% to 0.22p (2010: 0.18p)
-- Activity levels in UK financial services markets held firm
Ken Ford, Chairman of Nakama, commented:
"We are pleased to report our interim results, which show an increase in revenue of 8% to GBP4.78m (2010: GBP4.41m) on the same period last year, with an increase in net fee income (NFI) and profit before tax.
Activity levels in Highams' core UK Financial Services sector have held firm in spite of economic uncertainty.
For some time we have been looking for an acquisition to enhance the Group's offering and we were delighted to announce the acquisition of Nakama on 13 October 2011 and the change of name to Nakama Group plc. We now move into the second half of the year with a stronger platform on which to continue to develop. Not only will we see the reopening of a London office but furthermore, Nakama's exposure to international markets provides the opportunity to broaden geographical spread, cross sell to an enlarged client base and diversify risk. A copy of the announcement giving full details of the terms of the acquisition is at www.highams.com.
The acquisition of Nakama brings many other potential benefits and brings on board the experienced recruitment specialist, Stefan Ciecierski, who I am delighted to welcome to the Board as CEO. I therefore very much look forward to a new chapter of growth for the enlarged Group".
Enquiries:
Stefan Ciecierski, Chief Executive Tel: 020 3170
Officer 8202
Nakama Group plc
Mark de Lacy, Managing Director Tel: 01883 341
144
Nakama Group plc
www.highams.com
Jonathan Wright (Nominated Tel: 0207 107
adviser) 8000
Seymour Pierce Limited
Tarquin Edwards Tel: 07879 458
364
Peckwater PR
CHAIRMAN'S STATEMENT
Interim results for the six months ended 30 September 2011
Introduction
We are pleased to report our interim results, which show an increase in revenue of 8% to GBP4.78m (2010: GBP4.41m), on the same period last year, with an increase in net fee income (NFI) and profit before tax.
Activity levels in Highams' core UK Financial Services sector have held firm in spite of economic uncertainty.
Financials
The results for the 6 months to 30 September 2011 do not reflect the acquisition of Nakama which took place after the period end.
We have had a good start to the year: turnover increased to GBP4.78 million (2010: GBP4.41 million), and NFI increased to GBP887,000 (2010: GBP770,000). The operating profit before interest and tax was GBP155,000 (2010: GBP128,000).
A return to future dividend payments is being kept under review by the Board, but following the recent acquisition and on-going integration of the two businesses, the directors are not recommending that the Company does so at the current time.
Recent News
For some time we have been looking for an acquisition to enhance the Group's offering and we were delighted to announce the acquisition of Nakama on 13 October 2011 and the change of name to Nakama Group plc. We now move into the second half of the year with a stronger platform on which to continue to develop. Not only will we see the reopening of a London office but, furthermore, Nakama's exposure to international markets provides the opportunity to broaden geographical spread, cross sell to an enlarged client base and diversify risk. A copy of the announcement giving full details of the terms of the acquisition is at www.highams.com.
Although both Highams and Nakama supply technology, business and professional services personnel, Nakama's focus on the digital technology and interactive media sector is sufficiently distinct from Highams' focus on the financial services industry to provide some diversity of risk and the opportunity of cross-selling to each other's client base, while providing an enlarged database of contractors with a wider range of opportunity. We also expect to experience some operational cost savings from the merger of the two companies.
The acquisition of Nakama brings many other potential benefits and brings on board the experienced recruitment specialist, Stefan Ciecierski, who I am delighted to welcome to the Board as CEO. I therefore very much look forward to a new chapter of growth for the enlarged Group.
Summary and Outlook
We continue to make good progress and we now move into the second half of the year with a stronger platform on which to continue to develop the enlarged Group.
We have, over the past few months, recruited more personnel into the Highams sales team to enhance delivery and I welcome all new joiners to the Group. I am particularly pleased to welcome our new colleagues from Nakama in the UK, Hong Kong and Australia, some 30 people, into the enlarged Group.
Integration of the back office systems will take place over the coming months which should bring operational benefits to the Group as a whole; these benefits should be reflected in the second half of the year to 31 March 2012 and for the full year to 31 March 2013.
Ken Ford
Chairman
10 November 2011
Consolidated statement of
comprehensive income
for the six months ended 6 months 6 months 12 months
30 September 2011 to to to
30 Sep 30 Sep 31 Mar
2011 2010 2011
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Total Revenue 4,779 4,409 9,020
Cost of sales (3,892) (3,639) (7,390)
Net fee income 887 770 1,630
Other administrative costs (732) (642) (1,317)
Operating profit 155 128 313
Finance costs (3) (5) (10)
Profit on ordinary activities
before taxation 152 123 303
Tax credit - - 200
Profit and total comprehensive
income for the period attributable
to equity shareholders 152 123 503
========== ========== ==========
Basic earnings per share 2 0.22 p 0.18 p 0.73 p
Diluted earnings per share 2 0.21 p 0.17 p 0.71 p
Statement of changes
in equity
at 30 September
2011
Employee
share
Share Share Merger benefit Currency Retained Total
capital premium reserve reserve Reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April
2009 1,597 1,239 90 (61) 3 (2,805) 63
Currency adjustments - - - - 1 - 1
Profit to 31
March 2010 - - - - 232 232
---------------------- --------- --------- --------- --------- --------- ---------- --------
At 31 March
2010 1,597 1,239 90 (61) 4 (2,573) 296
Share based
payment credit 2 2
Profit to 31
March 2011 - - - - - 503 503
---------------------- --------- --------- --------- --------- --------- ---------- --------
At 31 March
2011 1,597 1,239 90 (61) 4 (2,068) 801
Profit to 30
September 2011 - - - - - 152 152
---------------------- --------- --------- --------- --------- --------- ---------- --------
At 30 September
2011 1,597 1,239 90 (61) (1,916) 953
Consolidated balance
sheet
as at 30 September
2011
6 months 6 months 12 months
to to to
30 Sep 30 Sep 31 Mar
2011 2010 2011
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant
and equipment 4 3 5
Deferred tax asset 301 101 301
Total 305 104 306
--------------------------- ---------- ---------- ----------
Current assets
Trade and other
receivables 1,590 1,255 1,592
Cash and cash equivalents 346 - 176
Total 1,936 1,255 1,768
--------------------------- ---------- ---------- ----------
Total assets 2,241 1,359 2,074
--------------------------- ---------- ---------- ----------
Liabilities
Current liabilities
Trade and other
payables (1,288) (750) (1,273)
Borrowings - (190) -
Total (1,288) (940) (1,273)
--------------------------- ---------- ---------- ----------
Net assets/(liabilities) 953 419 801
--------------------------- ---------- ---------- ----------
Equity
Share capital 1,597 1,597 1,597
Share premium account 1,239 1,239 1,239
Merger reserve 90 90 90
Employee share benefit
trust reserve (61) (61) (61)
Currency reserve 4 4 4
Retained earnings (1,916) (2,450) (2,068)
Total equity 953 419 801
---------- ---------- ----------
Consolidated Cash Flow
Statement
as at 30 September 2011
6 months 6 months 12 months
to to to
30 Sep 30 Sep 31 Mar
2011 2010 2011
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Operating activities
Profit before taxation 152 123 303
Depreciation of tangible
assets 1 4 8
Net finance costs 3 5 10
Changes in trade and other
receivables 2 36 (301)
Changes in trade and other
payables 15 (126) 399
Net cash used in operating
activities 173 42 419
Cash flows from investing
activities
Purchase of property plant
and equipment - - (6)
Net cash used in investing
activities - - (6)
---------- ---------- ---------------------------
Financing activities
Reduction in borrowings - (80) (231)
Interest paid (3) (5) (10)
---------- ---------- ---------------------------
Net cash from financing
activities (3) (85) (241)
---------- ---------- ---------------------------
Net changes in cash and
cash equivalents 170 (43) 172
Cash and cash equivalents
at beginning of period 176 4 4
Cash and cash equivalents
at end of period 346 (39) 176
---------- ---------- ---------------------------
Notes to the Interim Report
1. Basis of Preparation
This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting policies used in preparing the interim results are those that the Group expects to apply in its financial statements for the year ended 31 March 2012 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 March 2011
The financial information for the six months ended 30 September 2011 and 30 September 2010 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 2011 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 (GBP'000) except when otherwise indicated.
2. Earnings per share
6 months 6 months 12 Months
to 30 to 30 to 30
Sept Sept March
2011 2010 2011
Unaudited Unaudited Audited
Weighted Weighted Weighted
average average average
number number number
of Profit of Profit of Profit
per per per
Profit shares share Profit shares share Profit shares share
GBP'000 '000 p GBP'000 '000 p GBP'000 '000 p
Basic earnings
per share 152 68,834 0.22 123 68,834 0.18 503 68,834 0.73
Diluted earnings
per share 152 72,976 0.21 123 70,992 0.17 503 72,285 0.71
This information is provided by RNS
The company news service from the London Stock Exchange
END
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