Parity Group PLC Trading Update (4038T)
20 July 2020 - 4:00PM
UK Regulatory
TIDMPTY
RNS Number : 4038T
Parity Group PLC
20 July 2020
20 July 2020
Parity Group plc
('Parity' or 'the Company')
Trading Update
Parity Group plc, the data and technology focussed professional
services business, today provides the following statement in
respect of trading for the six months ended 30 June 2020.
Parity expects to announce its interims results for the six
months ended 30 June 2020 in mid-September 2020. The Company
anticipates that it will report revenues of approximately GBP30m
and a modest adjusted profit before tax (before non-underlying
items).
The Company remained cash positive at period end, with a net
cash balance of GBP0.65m at 30 June 2020 (30 June 2019 net debt
GBP1.2m) (both figures stated before IFRS16 lease liabilities). The
improvement is mainly due to management actions including cost
reductions and payment deferrals, some of which will unwind over
the next year.
As stated in the final results for 2019 announced in April, the
Board anticipates that Covid-19 impacts will, in part, be mitigated
by cost savings achieved in 2019 and by the implementation of a new
operating model which will deliver additional savings in 2020.
Encouragingly, the Company is now seeing a return of new sales
opportunities, following the severe reduction in early stage
opportunities and projects at the height of the pandemic. Parity
made the decision not to furlough any staff in order to remain as
close as possible to its markets and is encouraged by the recent
return of activity and prospects. It is too soon however, given
general uncertainty, to come to any conclusion on future trading
prospects. The Board will comment further on full year outcome in
September.
Commenting on the first half of the year Chief Executive,
Matthew Bayfield, said:
"The Covid 19 pandemic has had a profound impact on our sector.
However the decisions we made in 2019 around restructuring the
business, have meant that not only were we able to avoid
furloughing any members of staff but we have been in a position to
recruit seven new people to join the business during the last three
months to support our growth ambitions.
"Parity is a digitally enabled business and the move to working
from home has been achieved without disruption to our productivity.
I am very grateful to all of our staff for the way they have
responded to the challenges presented by the pandemic. The
management team are to be commended on the way the business has
performed in extraordinary circumstances."
For further information, contact:
Contacts
Parity Group PLC www.parity.net
Matthew Bayfield, CEO
Mike Johns, CFO + 44 (0) 208 543 5353
Donhead Consultants david@donheadconsultants.com
David Beck +44 7836 293383
WH Ireland Limited (Nomad and www.whirelandcb.com
Broker)
Mike Coe
Chris Savidge +44 (0) 117 945 3470
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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