StockMarketWire.com - Struggling recruitment company Nakama said the coronavirus outbreak had hurt its business in Hong Kong and Singapore, while reiterating that it urgently needed an injection of capital.

Nakama said firms were delaying new hires due to curbs on the movement of people imposed by regional governments.

'Furthermore, recruitment activity generally has been immediately impacted by the effects of coronavirus,' it added.

Nakama has been slashing costs to offset lower sales. It said trading for the year through March 2020 had been broadly in line with management's expectations. However, it added that 'during the final quarter of the financial year the group has encountered a number of challenges'.

Apart from the coronavirus hit, these also included a challenging UK recruitment environment, marred by the introduction of new accountancy standards.

Nakama said its cash position remained 'severely constrained' and that it faced a 'short-term cash challenge' until the full impact of recent cost reductions had come through.

'The board are considering several alternative sources of funding to improve the group's cash position, but the group still urgently requires an injection of capital,' the company said.



Story provided by StockMarketWire.com