Parity Group PLC Trading Statement (1568Z)
December 13 2017 - 2:00AM
UK Regulatory
TIDMPTY
RNS Number : 1568Z
Parity Group PLC
13 December 2017
13 December 2017
Parity Group plc ("Parity "or the "Group")
Trading Update
Ahead of expectations
- Strong momentum in Consulting Services and framework success
Parity (AIM:PTY), the technology focussed consultancy and
staffing business, today announces the following trading update in
respect of its financial year ending 31 December 2017.
The Board is pleased to report that Group operating profit on
continuing operations for the year ending 31 December 2017 is now
expected to be slightly ahead of its original expectations.
Overall, we expect full-year underlying Operating Profit to show
double digit growth over FY 2016, and to be cash generating.
This reflects encouraging progress in our stated strategy of
building our higher margin Parity Consultancy Services division,
with continued momentum in the second half following the
improvement in business mix reported in our interim results on the
14(th) September 2017. In addition, against a backdrop of an
unsettled UK economy with Brexit, Parity is pleased to report that
contractor volumes within its Parity Professionals division have
largely recovered to levels seen prior to the Public Sector IR35
taxation reforms.
In the period, Parity has seen success with contract extensions
including those with British American Tobacco, MoD MCOCS, the
outsource of the FastStream graduate recruitment process and all
key Public Sector frameworks for our services. In addition, we are
pleased with the progress in developing our pipeline in new public
and private sector bids.
Alan Rommel, CEO, commented:
"Through the year we have taken steps to align our core
divisions more effectively with an increased focus on both
technology consultancy and digital transformation recruitment
services. This strategic focus is driving a rebalancing of the
business and we are delighted that our higher margin Consultancy
Services is performing ahead of Board expectations in the second
half.
"This marks the fourth consecutive reporting period of
comparative operating profit improvement resulting from our
improved mix, whilst our cash generation has seen the Group reduce
net debt by GBP5.2m over the 18 months from GBP7.5m as at 31
December 2015 to GBP2.3m as at 30 June 2017.
"We see significant opportunities for the Group and, with the
benefit of an improving balance sheet, we plan to continue to
invest during 2018 to accelerate growth in target markets for our
Consultancy Services division in order to further enhance
profitability, cash generation and 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
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