Nakama Group warns it will miss expectations

1st Apr 2016 15:28

(ShareCast News) - Nakama Group issued a warning over its full-year results on Friday, having spent much of its resources restructuring the company amid tough trading conditions.The AIM-traded recruitment firm said that, since the appointment of Rob Sheffield as group CEO in September, it had been through significant change as a result of a 'holistic' review of the business.Over the last six months, it had made changes to the infrastructure of the organisation in all geographies, IT operations, support and sales processes and staff, the board explained.Sales training and management development programmes had been implemented in all divisions, with the changes involving management team changes and continues increasing headcount in sales.Nakama had also made a significant investment in New York, in a bid to grow the global network."The board believes that, in order to grow the business, the restructuring and the investment are crucial to the future of the group. The effect of this is reduces profitability during the period," the board said in a statement.It explained that markets had been inconsistent, and they had seen a softening in the contracting market in the UK which affected performance.Nakama's board warned that its turnover for the year to 31 March would be below expectations."The directors are confident that the changes made in the last financial year will show results in the coming year, and they believe that the business is well positioned for growth in the future," the board said.Nakama was due to announce its results for the year to 31 March in July this year.