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Parity Group Falls As It Issues Profit Warning, Restructures Division

Fri, 02nd Nov 2018 09:18

LONDON (Alliance News) - Shares in consultancy and recruitment firm Parity Group PLC slumped as it warned profit for 2018 will miss expectations.

Shares were 30% lower on Friday morning at 6.85 pence each.

In September, Parity had warned of a delay on a "large" contract. This is still delayed, it said Friday, and if it does go ahead "scope will be reduced".

As a result, profit for 2018 will miss expectations, and despite revenue growth adjusted pretax profit in the six months to December will be "around break-even".

Its pretax profit in 2017 was GBP1.7 million from GBP959,000 the year prior, and on an adjusted basis the figure rose to GBP1.7 million from GBP1.3 million.

Parity has decided to restructure its Consultancy Services business, and is to look at cost reductions to help improve profitability in 2019. The company is to incur one-off costs of about GBP300,000 to GBP400,000 for this.