Highams Systems Services

As foreshadowed here last week, business services specialist Highams (HSS) has clinched a transformational £1.28m deal with multinational tech recruitment concern Nakama. Caterham-based Highams, which provides technology, professional and business services to the insurance and finance sectors, is issuing shares to buy London-headquartered Nakama, which specialises in recruitment for the digital technology and interactive media industry. 

The deal will give Nakama shareholders 41.4% of the enlarged company, which will be called Nakama Group, and experienced Stefan Ciecierski, Nakama's founder, will become chief executive. AIM-quoted Highams chairman, City veteran Ken Ford, who first met the Nakama people last year, argues the deal will give Highams' clients access to the fast-moving markets in which Nakama operates, notably Hong Kong and Australia.

Highams doubled pre-tax profits to £303,000 in its last financial year on turnover up 20% to £9m, while Nakama made £161,000 pre-tax on £3m turnover in the 15 months to last December and nearly £234,000 pre-tax on £4.7m turnover in the eight months to August.  

Recommended by Growth Company Investor at 2p in 2009 and more recently at 2.5p — having hit 4p on the way — Highams shares now trade at 2.88p. This deal should enhance their prospects.