Parity Group PLC Trading Statement (1738L)
July 17 2017 - 1:00AM
UK Regulatory
TIDMPTY
RNS Number : 1738L
Parity Group PLC
17 July 2017
17 July 2017
Parity Group plc
("Parity "or the "Group")
Trading Update
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 25(th) 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 GBP2.3m (31 December 2016: GBP4.4m)
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.
Contacts:
Parity Group PLC www.parity.net
Alan Rommel, CEO 0208 543 5353
Roger Antony, GFD, GFD
WH Ireland Limited www.whirelandcb.com
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
MHP Communications
Katie Hunt / Kelsey Traynor +44 (0)203 128 8100
This information is provided by RNS
The company news service from the London Stock Exchange
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