HoT regarding revenue share on AI data platform

RNS Number : 1793T

Parity Group PLC

13 November 2019

 

13 November 2019

AIM: PTY

Parity Group PLC

("Parity" or "Company")

Parity shares revenue with Integumen plc to deliver AI data platform solutions to clients

Parity announces that it has signed Heads of Terms with Integumen plc to enter a multi-year Framework Agreement ("Agreement") to be completed on or before the 18th of December 2019. It is envisaged that the Agreement will give Parity access to Integumen's Artificial Intelligent ("AI") software which it can supply across its client base which includes the National Health Service ("NHS"), Central Government and Private Institutional clients.

This Agreement accelerates Parity's transformation from a predominately commoditised recruitment business to a data consultancy service provider of intelligent data management systems, extracting value using analytics, with a focus on return on investment for our Company's 100+ institutional clients. The software includes full GDPR compliance with secure cloud data migration from existing legacy systems to a digital workplace through the military grade encryption "Drive4Growth" AI platform powered by Integumen's Rinodrive.

Combined benefits:

·      Recurring shared revenue streams for both Parity and Integumen in 2020

·      Value-added proposition in demand from Parity clients with c. 3 to 5-year annual contracts

·      Immediate access to 100+ public and private institutional clients

·      Trusted approved vendor for Government and private sectors for over 45 years

·      700+ data experts and 50+ enterprise sales and office professionals

·      Existing cross-over access to educational institutional research facilities

·      Access to multiple industry, public and private sector distribution routes to market

·      Well defined roadmap to next level business growth for both Parity and Integumen

Since the appointment of the new CEO, in February 2019, there has been structural changes to the business. Client management focus is on increasing profitability. New senior management has reduced high-volume low-margin business to low-volume high-margin multi-line business development. This includes new, higher value data expert professional service offerings. Reduction in headcount of 35% has resulted in a rolling 12-month gross cost saving of £2m. Heading into 2020 with these changes and with today's agreement, the board expect the Company will deliver a right-sized company with higher margins, increased profitability leading to improved shareholder value.

Matthew Bayfield, CEO of Parity Group plc, comments:

"Parity is pleased to be partnering with Integumen and rolling out the Drive4Growth AI platform to our client base.  We have been working with many of the same clients for 45 years, so we understand their needs.  With healthcare sector data in 2020 expected to double every 73 days, our clients need to securely manage and extract greater value using analytics and AI in order to make important decisions.  The Drive4Growth AI platform delivers on those requirements, increases revenue per client, increases client contract term and generates a higher margin, leading to greater profitability."

Gerard Brandon, CEO of Integumen plc, comments:

"We are delighted to be able to roll-out the Drive4Growth AI platform in partnership with the credibility and reputation that Parity data experts hold with an extensive list of public and private institutions. We look forward to working alongside Parity to extract greater value for their clients and contribute to the transformation of the UK's National Health Service, public and private institution data over the next few years."

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Contacts

Parity Group plc	Matthew Bayfield, CEO Roger Antony, GFD	[phone]
WH Ireland Limited (Nominated Adviser & Broker)	Mike Coe Chris Savidge	[phone]
Donhead Consultants (Broker)	David Beck	[phone]

About Parity Group: www.parity.net

Parity helps organisations find the right people, skills and data to support data-led business decisions. Providing advice on data and with access to qualified personnel with skills offered, either as a managed service, through resourcing in the contract or permanent market or as part of a learning and development programme.

Income derives from a mix of long-term contracts with public and private sector organisations as well as expanded projects with existing clients as a result of strong relationships and a track record of high client satisfaction. Key highlights comprising of:

·      Over 45 years of expertise in public and private recruitment and service contract sector

·      More than 50 employees across the UK

·      Client numbers exceed 100 in both UK and Ireland

·      Associate numbers supporting client services exceeds 700

About Integumen: www.integumen.com

Integumen is a vertically integrated product and services company for skin related diseases, treatments and therapies with four business units: 

·      Labskin AI's technology platform incorporates artificial intelligence within clinical research for medical device, pharmaceuticals, cosmeceuticals and related life science test services.  Labskin allows skincare, healthcare, pharmaceutical manufacturers and cosmetic companies to test their products on human-like skin in a real-world environment with full access to multiple state-of-the-art partner technologies.

·      Rinodrive is a data aggregation, refining and AI analysis open-source eco-system designed to provide third-party service providers the ability to offer their clients valuable insights that support clinical, operational and financial decisions in healthcare services, third-level education, government departments and the financial sector.

·      Wound pHase is developing skin and wound care products using its proprietary wound dressing technology. Working in collaboration with CBD providers creating a CBD infused diabetic wound care product range.

·      Stoer-for-men skin products e-commerce division offers a range of skincare products derived from 5 natural super-ingredient plant extracts specifically for men to reduce the signs of ageing and is also used as a control for client testing within Labskin laboratories.

RinoDrive "Drive4Growth": www.rinodrive.com

A fully integrated set of software tools that can ingest data, in any volume, from any source in any format, interact with it, learn from it and enrich it to unlock insights and discoveries.

This data management solution was developed by scientists and engineers with experience in software, sensors, AI, optofluidic research, fintech, green-tech, travel and healthcare.

It was designed to allow interaction, in a cyber-secure environment, with commercially sensitive data, and to share insights across multi-disciplinary teams, generating different data formats, from multiple sources, located in different countries.

RinoDrive delivers big data, AI functionality and world class infrastructure to large companies with big data problems. These include financial services, education and life science companies. Most recently completing the automation of laboratories and application of AI to unearth more knowledge about the skin microbiome. This led to the acquisition in May 2019 by Integumen PLC, to secure access to, and the exploitation of data from some of the largest cosmetic, pharmaceutical and medical companies in the world.

 

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