Parity Group PLC Disposal of non-core subsidiary (6676L)
April 20 2018 - 8:45AM
UK Regulatory
TIDMPTY
RNS Number : 6676L
Parity Group PLC
20 April 2018
20 April 2018
This announcement contains information which, prior to its
disclosure by this announcement, was inside information for the
purposes of the Market Abuse Regulation.
Parity Group plc ("Parity "or the "Group")
Disposal of non-core subsidiary
The Board of Parity (AIM:PTY), the technology focussed
consultancy and staffing business announces the sale of Inition
Limited ("Inition") to Digital Communication Group Limited, a UK
registered company, for a total consideration of GBP200,000 payable
in cash with GBP100,000 payable on completion and the balance
payable in 6 months.
Inition is a wholly owned subsidiary which delivers virtual and
augmented reality technology experiences. In the year ended 31
December 2017, Inition made a loss before tax of GBP1.0m on
turnover of GBP2.3m. All employees of Inition will transfer with
the business.
Due to its lack of scale and synergy with the Group's strategy
the Board identified Inition as being no longer part of the core
business and it was classified as an asset held for sale in the
Group's financial statements for the year ended 31 December 2017
with a book value of GBP396k. Following the disposal, the Group
will benefit from the reduction in the cash cost of funding
Inition's operating losses, which totalled GBP712k in 2017, and the
net cash proceeds which will reduce indebtedness.
Alan Rommel, CEO, commented:
"The sale of Inition is a further important step to simplify and
align the business in line with our stated strategy of growing our
core staffing and higher margin consultancy businesses. The
disposal will help to further reduce indebtedness and improve both
cash flow and profitability, allowing us to make strategic
investment decisions which drive 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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