Share Search
Visit the Share Search
Nakama warns of possible cash crisis amid tough trading
13th Nov 2020 11:05
(Sharecast News) - UK and Asia-focussed technology recruitment consultancy Nakama updated the market on its trading on Friday, reporting that Covid-19 had an "immediate and significant" impact on its activities.
The AIM-traded firm said it had used a number of government initiatives in the UK, including the Coronavirus Job Retention Scheme, and in Hong Kong and Singapore, in a bid to preserve cash and retain its ability to continue to trade.
It said recent trading had been in line with its expectations, which were reset following the outbreak of Covid-19, although market conditions remained difficult, particularly in light of a second wave of the pandemic and continued uncertainty following new national lockdowns.
"It remains the board's view that as the various government support schemes are ended, the company will face a number of trading and cash flow challenges and without access to additional capital the group's working capital situation may deteriorate," the Nakama board said in its statement/
"The company's largest shareholder has made it clear to the board that they would not support a fundraise and would vote against the necessary shareholder resolutions to issue new shares.
"As such, and noting that the UK government support schemes are due to end in the first quarter of 2021, the board is now exploring a number of options for the company and its businesses and further announcements will be made as and when appropriate."
The AIM-traded firm said it had used a number of government initiatives in the UK, including the Coronavirus Job Retention Scheme, and in Hong Kong and Singapore, in a bid to preserve cash and retain its ability to continue to trade.
It said recent trading had been in line with its expectations, which were reset following the outbreak of Covid-19, although market conditions remained difficult, particularly in light of a second wave of the pandemic and continued uncertainty following new national lockdowns.
"It remains the board's view that as the various government support schemes are ended, the company will face a number of trading and cash flow challenges and without access to additional capital the group's working capital situation may deteriorate," the Nakama board said in its statement/
"The company's largest shareholder has made it clear to the board that they would not support a fundraise and would vote against the necessary shareholder resolutions to issue new shares.
"As such, and noting that the UK government support schemes are due to end in the first quarter of 2021, the board is now exploring a number of options for the company and its businesses and further announcements will be made as and when appropriate."