Profits have fallen at IT recruiter Parity Group but the firm is in determined mood, according to a statement on its interim results for the six months ended 30 June 2010.

The group’s results, which includes both Parity Resources and Parity Solutions, reveal:

·     Group revenues down 16% at £52.59m (2009: £62.79m)

·     Parity Resources operating profit* £1.10m (2009: £1.35m)

·     Parity Solutions operating loss* £1.12m (2009: £0.13m)

         * operating profit/operating loss refers to profit/loss before tax and exceptional items.

The statement says: “It was clear to us when we arrived in early June that urgent action was required to reverse an unexpected decline in performance in the first half of 2010. In our trading update in July 2010 we made this clear and indicated cost-cutting actions and revised expectations, with which these reported results are in line. We have since made a second round of cost cutting as flagged therein, involving further redundancies.

“The second half of 2010 will be difficult as the cost reductions are completed and the new focussed business divisions prepare their sales offerings and professional staff for a new start in 2011. Whilst the cost reductions will improve the operating performance through this period, the group will clearly not be profitable in the period.  As noted above, the securing of further facilities is in active discussion already and cash will need to be managed tightly.

“We are determined to start next year in good shape with an efficient business focussed on future growth markets with the needed latest technology skills. The board believes that this new market focus will provide a base for improved performance from next year, in line with our commitment to improving shareholder value.”

Meanwhile Parity Solutions  has been chosen by the Cabinet Office to manage its Fast Stream graduate recruitment programme.

The new contract runs for two and a quarter years until December 2012.