FINANCIALS: Parity Group ‘maintains momentum’ says trading update

Parity Group says it is “maintaining momentum” and expects to report year-on-year double-digit growth, according to a trading update for the six months ended 30 June 2017.

Following a statement by the technology-focused consultancy and staffing business released at the end of May, this morning’s update reveals Parity is now seeing clear evidence that the company is maintaining momentum. It now expects double-digit growth on H1 2016, while net debt has also fallen to £2.3m from £4.4m as of the end of 2016.

The group adds it will continue to focus on rebalancing the business towards its more profitable consultancy services operation. The statement adds that lower margin for its professionals division has resulted in slightly lower revenues in H1 2017 compared with H1 2016 due to lower public sector contractor volumes resulting from supply side uncertainty and having to contend with IR35 taxation reforms. However, the group adds this division appears to have weathered these issues, with client demand being restored.

Commenting on the group’s performance, CEO Alan Rommel said he was pleased to see the continued momentum for the group as it rebalances the business towards its consultancy services division.

"Our strong cash and working capital management has further reduced net borrowing and leaves us well placed to continue to self-fund investment to grow our sales capacity,” Rommel added.

Parity will provide a further update within its half-year results for the six months ended 30 June 2017, expected by mid-September.

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