Notice of Interim Results
30 July 2019
Parity Group plc
("Parity" or the "Group")
Notice of Interim Results
Parity Group plc ("Parity" or the "Group"), the data and technology focussed professional services business, today provides the following update on trading for the six months ended 30 June 2019.
Parity will announce its interims results for the six months ended 30 June 2019 in mid-September 2019. The results will be consistent with the market's expectation for the full year. Net debt, representing cash and cash equivalents less borrowings, was £1.2m at the end of June (30 June 2018: £1.9m, 31 December 2018: £1.1m). Board expectations for the full year remain unchanged.
Commenting Chief Executive Matthew Bayfield said: "Our transformation plan for Parity, which was launched part way through the first half, is progressing well. We are delivering cost savings, making good progress with the changes to our people and skills and beginning to win the consultancy contracts that will, in time, improve our gross margins."
"The transformation plan is more pertinent than ever as market conditions in the traditional recruitment sector remain challenging with continued margin pressure being driven by new entrants and digital recruitment solutions. At Parity, we are seeking to move away from low margin recruitment to focus on providing solutions in the data market offering consultancy, learning and development and strategic recruitment."
The business has achieved some encouraging new contract wins and renewals in recent weeks.
Highlights of recent activity include:
· winning a 'G-Cloud' call off contract with the Department for Education to supply consultancy, business intelligence and data analytics. Parity specialises in the creation of end-to-end IT solutions which incorporate Business Intelligence. We will provide strategic, technical and business consultancy, Cloud implementation and systems support, ensuring integration with our customers' Cloud and on-premises systems and sources of data.
This 12 month contract for the Transformation project is renewable for a further 12 months and has an estimated maximum value to Parity of £2m per annum.
· recently signing with BAT, a longstanding client, a contract extension for a further 6 months of work, and with strong expectation of a further 12 month extension. The extension which is on similar terms to the existing contract will cover, amongst other things, consultancy work on systems integration.
· being successful in three separate lots within a recently concluded tender for a two-year framework contract with the Crown Commercial Service. The Crown Commercial Service is putting in place a pan Government collaborative framework contract for use by UK public sector bodies which include Central Government Departments and their arm's length bodies and agencies, non-departmental public bodies, NHS bodies and local authorities. The aforementioned public sector bodies have a need for non-clinical temporary and fixed term staff which Parity will be able to provide under the new framework contract.
This framework contract covers an initial period of two years, with the potential to extend for an additional two years, and will in part replace an existing framework contract. Existing revenues are approximately £8m per annum, with the new framework providing opportunity for growth.
For further information, please contact:
Parity Group PLC www.parity.net
Matthew Bayfield, CEO + 44 (0) 208 543 5353
Roger Antony, GFD
WH Ireland Limited www.whirelandcb.com
Mike Coe / Chris Savidge +44 (0) 117 945 3470
Donhead Consultants, PR & Communications
David Beck +44 (0) 7836 293383
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
Quick facts: Parity Group plc
Market Cap: £7.44 m
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