PTY.L Regulatory News (PTY)

4 Dec 2009 07:00

4 December 2009

Parity Group plc

Trading Statement

In our Interim Management Statement on 13 November 2009, Parity Group plc (the "Group") stated that, whilst overall trading during the second half of 2009 had been in line with management expectations, clients remained cautious about spending decisions. For the Solutions business specifically, we noted that market volatility remained high and short term visibility low.

In the period since the IMS, it has become clear that the rate of improvement in revenue in Solutions will be slower than we anticipated. We continue to experience slowing customer decision-making and are now seeing a slowing of the rate of implementation of already secured projects. This process of deferral, combined with an unfavourable business mix, is having a dilutive effect on gross margins. 

The Group has now largely completed deployment of a new management information and control system which gives better visibility and data on all the Group's activities. 

We continue to expect that Solutions will show a return to profit in the second half. However, in this recovery small revenue delays have a disproportionate effect on profitability. As a result of these factors, the Board expects that the Group's pre-tax profit for the second half of the current year will be approximately £300k less than that reflected in current market expectations. 

The Resources business has been unaffected and continues to perform well. 

Given the continued good performance in Resources, and despite the slower improvement in trading in Solutions, the Board has not altered its expectations for the Group's performance in 2010. 

- Ends -

Notes to editors: 

Parity Group PLC is a UK-focused IT services company, operating via two core business units - Parity Resources and Parity Solutions. 

Parity Resources is a leading IT recruitment specialist, with over 30 years experience in providing permanent and contract technology staff, temporary staff and managed recruitment services across all markets. 

Parity Solutions specialises in providing IT, Projects and Consulting, using leading edge technologies and drawing upon the depth of experience of its consultants in Programme and Project Management. 

Parity Group PLC is listed on the London Stock Exchange, with a ticker of PTY.LN.