Interim Management Statement

RNS Number : 0096F

Parity Group PLC

17 May 2013

 



Parity Group plc ("Parity" or the "Group"),

Interim Management Statement, 17 May 2013

Parity Group plc, the UK IT services group, today issues its Interim Management Statement for the period from 1 January 2013 to date.

Group Trading

Last year the Group returned to revenue growth and maintained the recent steady improvement in profitability seen under new management. The Board's expectations for the current year remain unchanged from those set out in the preliminary results announcement on 7 March 2013, and trading is in line with management expectations.

Operations

During the first half of the current financial year, the Group's business is being reorganised into two divisions:-

·    Parity Professionals - the Group's services in the professional staff selection, development and placement markets;

·    Parity Digital Solutions - the Group's new strategic initiative in digital marketing services.

The Board expects this move to improve market focus in two distinct sectors and to reduce costs in the second half of 2013.

On 7 March this year Stephen Whyte, a highly experienced senior executive from the marketing services industry, joined the Board as CEO of the Parity Digital Solutions division, to lead the Group's digital strategic initiative.

The Group's move away from certain slowing IT sectors continues to be successful; both in the encouraging progress made within the Parity Professionals area and with the encouraging opportunities offered by Inition, the Group's first move in its new digital strategic initiative.

Parity Professionals

The Resources business continued to maintain contractor numbers despite the normal year-end seasonal project endings; a good performance. We continue to refine our offerings to respond to market feedback.

Talent Management is looking forward to the start of the 2013 academic year which, like last year, should see higher educational institutions calling off services under their contracts with us.

Parity Digital Solutions

The Systems business is stable and continues to maintain good margins; concentrating on the business intelligence sector and making progress in developing their current opportunities.

Inition, a 3D specialist in the digital media market which was acquired last May, performed better than expected in 2012 and, having proved the model, will this year see investment for future growth both in marketing staff and business systems.

Financial position

There has been no material change to the Group's financial position since the publication of our Annual Results on March 7^th 2013. 

As announced today, the Company has conditionally raised new capital through the Placing in order to initiate the Company's acquisition strategy described below.

Future Prospects and Strategy

The Board's strategic mission remains to create a significant improvement in shareholder value by building Parity Digital Solution's creative technology offering; whilst in parallel growing Parity Professionals' human resources business.

The Group continued to progress its acquisition strategy in the digital marketing field and has identified a shortlist of possible opportunities; which the Company would be in a better position to exploit as a result of the proposed Placing and move to AIM.

Ends

For further information contact:

Philip Swinstead, Chairman Paul Davies, Group Chief Executive	Parity Group plc	0845 873 6942
John Olsen/Ian Payne	MHP Communications	020 3128 8100
Shaun Dobson/Ben Wright	N+1 Singer Advisory LLP	020 7496 3000

 

END

 

 

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