Nakama Group issued an extensive update to the market on Friday, announcing that deputy non-executive chairman John Higham was retiring, and proposed to step down from the board with immediate effect.
The AIM-traded company said it intended to appoint a new non-executive director, with further announcements to be made in due course.

Additionally, following the detailed review of the group's finance function, the firm said it had agreed to appoint Patrick Meehan, ACCA, as its interim finance director on a part-time basis.

The appointment was a non-board position.

Meehan is the finance director of Sheffield Haworth, and his services would be supplied to Nakama by Sheffield Haworth pursuant to a secondment agreement.

His secondment would commence on 4 June, at a rate of £750 per day, and would be terminable by either party on four weeks' prior written notice or in accordance with certain other standard conditions.

Nakama also updated the market on its Australian tax obligations, confirming that all payment plan bills to the Australian Tax Office were being paid as they fell due.

The board said it was continuing to closely monitor its working capital obligations.

It said the company was continuing to benefit from its relationship with Sheffield Haworth, which resulted in Nakama gaining access to opportunities previously unavailable to it.

Nakama had entered into a business referral agreement with Sheffield Haworth which governed how revenues should be shared between the parties in the event of cross-referrals.

The business referral agreement set out that between 15% and 30% of the permanent fees generated from any such introduction would be allocated to the introducing consultant's revenues.

So far, the association with Sheffield Haworth had brought: new client wins in both Singapore and Hong Kong; and new preferred supplier agreements being signed in the UK.

As at 31 March, Nakama said it had paid approximately £5,000 to Sheffield Haworth and Sheffield Haworth had paid approximately £100,000 to Nakama.

It said it anticipated that further payments would be made and received under the terms set out in the business referral agreement, the receipt of which would constitute a transaction with a related party.

"On behalf of the board I would like to thank John for the significant contribution that he has made to the group over the last 35 years," said chairman Tim Sheffield.

"We have enjoyed working with John and we wish him well for the future."

Sheffield said the company also "welcome" Meehan to the business, describing him as a "strong and capable" finance director from his role at Sheffield Haworth.

"Patrick brings valuable knowledge and experience and will be able to assist the Board in strengthening the finance function and ultimately delivering on our strategy."

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