Parity Group PLC
17 July 2017
Parity Group plc
("Parity "or the "Group")
Parity (AIM:PTY), the technology focussed consultancy and staffing business, today announces the following update on trading for the six months ended 30 June 2017.
Further to our AGM statement on 25th May 2017, when we stated that the Group had had a satisfactory start to the year, we are pleased to report that there is clear evidence that we are maintaining momentum. The Board expects Group operating profit for the half year to show double digit growth versus H1 2016, and to be consistent with the market’s full year expectations.
The first half has also seen a further reduction in net debt, reflecting a positive swing in the Group’s working capital. Net debt as at 30 June 2017 was £2.3m (31 December 2016: £4.4m)
Our strategic focus remains on supporting the rebalancing of the business towards the more profitable Consultancy Services. Pleasingly this division has generated significant growth in its revenues compared with the equivalent period last year and is running ahead of expectations.
The lower margin Professionals division has seen slightly lower revenues in the first half compared with H1 2016 as a result of lower public sector contractor volumes resulting from supply side uncertainty and then the transition required to deal with the IR35 taxation reforms. However, the division appears to have weathered the process more favourably than some other staffing businesses and client demand has been restored post-implementation.
Alan Rommel, CEO, commented:
"We are pleased to see the continued momentum in the Group’s performance as we deliver on our strategy of growing our higher margin Consultancy Services division, which enjoys longer term visibility and high levels of client engagement.
"Our strong cash and working capital management has further reduced net borrowing and leaves us well placed to continue to self-fund investment to grow our sales capacity."
Parity will provide a further update within its half year results for the six months ended 30 June 2017 which are expected to be announced by mid-September.
Parity Group PLC http://www.parity.net/
Alan Rommel, CEO 0208 543 5353
Roger Antony, GFD, GFD
WH Ireland Limited http://www.whirelandcb.com/
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
Katie Hunt / Kelsey Traynor +44 (0)203 128 8100