Last checked at 13 Dec 2017 07:00
13 December 2017
Parity Group plc ("Parity "or the "Group")
Trading Update
Ahead of expectations
- Strong momentum in Consulting Services and framework success
Parity (AIM:PTY), the technology focussed consultancy and staffing business, today announces the following trading update in respect of its financial year ending 31 December 2017.
The Board is pleased to report that Group operating profit on continuing operations for the year ending 31 December 2017 is now expected to be slightly ahead of its original expectations. Overall, we expect full-year underlying Operating Profit to show double digit growth over FY 2016, and to be cash generating.
This reflects encouraging progress in our stated strategy of building our higher margin Parity Consultancy Services division, with continued momentum in the second half following the improvement in business mix reported in our interim results on the 14th September 2017. In addition, against a backdrop of an unsettled UK economy with Brexit, Parity is pleased to report that contractor volumes within its Parity Professionals division have largely recovered to levels seen prior to the Public Sector IR35 taxation reforms.
In the period, Parity has seen success with contract extensions including those with British American Tobacco, MoD MCOCS, the outsource of the FastStream graduate recruitment process and all key Public Sector frameworks for our services. In addition, we are pleased with the progress in developing our pipeline in new public and private sector bids.
Alan Rommel, CEO, commented:
"Through the year we have taken steps to align our core divisions more effectively with an increased focus on both technology consultancy and digital transformation recruitment services. This strategic focus is driving a rebalancing of the business and we are delighted that our higher margin Consultancy Services is performing ahead of Board expectations in the second half.
"This marks the fourth consecutive reporting period of comparative operating profit improvement resulting from our improved mix, whilst our cash generation has seen the Group reduce net debt by £5.2m over the 18 months from £7.5m as at 31 December 2015 to £2.3m as at 30 June 2017.
"We see significant opportunities for the Group and, with the benefit of an improving balance sheet, we plan to continue to invest during 2018 to accelerate growth in target markets for our Consultancy Services division in order to further enhance profitability, cash generation and shareholder value."
Contacts:
Parity Group PLC www.parity.net
Alan Rommel, CEO + 44 (0) 208 543 5353
Roger Antony, GFD
WH Ireland Limited www.whirelandcb.com
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
MHP Communications parity@mhpc.com
Katie Hunt / Kelsey Traynor +44 (0)203 128 8100