In a statement, Nakama revealed that following a strategic review of the business by new CEO Andrea Williams, the firm’s board of directors have been made aware that the group’s Australian subsidiaries may have difficulty in meeting a payment to the Australian Tax Office, due this month.

The payment forms part of a payment plan agreed with the tax office in 2017 relating to Goods and Services Tax and Pay as You Go liabilities owed to the tax office of around A$700k (£383.5k). The liabilities arose from the group's Australian trading operations during the period between July 2016 and September 2017.

Nakama adds it is currently considering ways of funding its Australian subsidiaries so it can meet the outstanding payment and is also exploring the possibility of approaching the Australian tax office to reschedule the payments under the payment plan.

Nakama’s board also says it has begun a review of the group’s finance function and is taking steps to strengthen its internal procedures and controls.

CFO Watson has tendered his resignation, stepping down from the group’s board with immediate effect, but will help the group ahead of the appointment of a new finance director, according to the statement.

The group added it is closely monitoring its working capital requirements, due to continued losses in Australia, Singapore and London adversely affecting its overall financial position.

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