Profits at digital recruiter Nakama Group were hit after funds were mismanaged at its Hong Kong office, according to its half-yearly report.

The company lost £120,000 as a result of the mismanagement and misappropriation, which chief executive Stefan Ciecierski said had “impacted on the group’s performance”.

A manager was dismissed as a result after the misappropriation was discovered on 21 October this year. Related debtors are being pursued in an attempt to make some recovery and in the meantime, the company has taken the precaution of making an exceptional provision of £68,000 for potential bad debt and has written off £52,000 of misreported sales.

Net fee income also rose by 134% to £2,078,782, (2011: £887,000), but net profit decreased to £11,000 (2011: £152,000). 

Its revenue grew by 81% to £8.64m compared with £4.78m in 2011. 

Its results reflect the additional revenue generated by the takeover of Nakama by Highams back in September 2011.