Trading Statement

RNS Number : 1214N

Parity Group PLC

28 January 2021

 

28 January 2021

PARITY GROUP PLC

TRADING UPDATE

Company expects to deliver modest profit before tax for the second half of 2020 having successfully completed its business transformation programme and despite COVID19.

Parity Group plc ("Parity" or the "Company"), the data and technology professional services business, today provides a trading update for its financial year ended 31 December 2020.  

· Profitable trading for the second half of 2020 despite the COVID19 pandemic

· This represents the first half-year profit before tax in two years.

· Adjusted full year profit (excluding non-underlying items) expected to be in line with 2019 adjusted profit before tax of £115k.

· Company-wide transformation programme concluded in the first half of 2020. No further material non-underlying costs in the second half of 2020.

· Strong debtor performance resulted in net cash positive position at 31 December 2020.

· Former Commercial Lead for Accenture in UK and Ireland joins the management team as Commercial Director.

Trading in 2021 and outlook

John Conoley, Non-Executive Chairman of the Company, said:

"We enter 2021 with ever increasing confidence in our ability to return the business to growth. We have agreed, subject to completion, a contract extension with a customer in the retail sector for a further twelve months; won work from a new consultancy customer, a very large multinational business, and we are in the very final stages of securing a significant new framework contract from a public sector customer who we have worked with before.

"Recent new business performance and the benefits of a lower cost base as a result of the successful transformation programme, should allow us to grow both net revenue and profit before tax in the coming year, despite the ongoing UK lockdown. We continue to benefit from a stable customer base, which remains weighted towards the public sector."

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.

For further information, contact:

Parity Group plc
Matthew Bayfield CEO Mike Johns CFO	020 8543 5353
WH Ireland - Nominated adviser and broker
Mike Coe Chris Savidge	0207 220 1666

This announcement contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Parity Group plc. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to (i) adverse changes to the current outlook for the UK IT recruitment and solutions market, (ii) adverse changes in tax laws and regulations, (iii) the risks associated with the introduction of new products and services, (iv) pricing and product initiatives of competitors, (v) changes in technology or consumer demand, (vi) the termination or delay of key contracts and (vii) volatility in financial markets.

 

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