- Recruitment company Nakama warned that its working capital position may deteriorate without access to more funds, as it reported a slump in revenue owing to the Covid-19 crisis and delayed the release of its results.

Revenue for the year through March was expected to fall 28% to £9.7m.

Nakama said that since the end of March its four businesses had continued to face trading challenges but continued to operate and take on assignments.

The company said UK units Highams and Nakama had seen business volumes reduce due to the initial, albeit revised, changes to IR35 and then the onset of Covid-19.

The trading environment in both Hong Kong and Singapore had been broadly similar to the UK due to Coivd-19.

'However, with local management in place and a strategy of broadening our international reach, trading has been maintained, albeit at reduced levels,' the company said.

Nakama said cash position, of £308k at the end of August, was currently stable and that the company was able to meet its obligations as they fell due.

But it added that the lasting nature of the pandemic and associated business uncertainty would likely continue throughout 2020.

'As the various government support schemes are ended the group will face a number of trading and cashflow challenges and without access to additional capital the group's working capital situation may deteriorate,' Nakama said.

'The Nakama board will continue to manage the group's businesses in accordance with market conditions and will give further updates accordingly.'

The company also said it would not be able to post its annual audited report and accounts for the financial year ended 31 March to shareholders by 30 September 2020, citing the pandemic.

The company had been granted an extension until 31 December to publish its annual report.

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