(NAK) Nakama Group

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 £4.78m (2010: £4.41m)

·      Profit before tax increased substantially by 23% to £152,000 (2010: £123,000)

·      Net fee income (NFI) rose by 15% to £888,000 (2010: £770,000)

·      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 £4.78m (2010: £4.41m) 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:

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 £4.78m (2010: £4.41m), 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 £4.78 million (2010: £4.41 million), and NFI increased to £887,000 (2010: £770,000). The operating profit before interest and tax was £155,000 (2010: £128,000).

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

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 (£'000) except when otherwise indicated.

2. Earnings per share