IT staffing business Parity has warned that the rate of improvement in revenue in its Solutions business will be slower than it previously anticipated.

In a trading statement, the company says: “In the period since its interim management statement of 13 November, it has become clear that the rate of improvement in revenue in Solutions will be slower than we anticipated.

“We continue to experience slowing customer decision-making and are now seeing a slowing of the rate of implementation of already secured projects. This process of deferral, combined with an unfavourable business mix, is having a dilutive effect on gross margins.

“We continue to expect that Solutions will show a return to profit in the second half. However, in this recovery small revenue delays have a disproportionate effect on profitability.”

Consequently, Parity says it “expects that the group’s pre-tax profit for the second half of the current year will be around £300k less than that reflected in current market expectations.

“The Resources business has been unaffected and continues to perform well. Given the continued good performance in Resources, and despite the slower improvement in trading in Solutions, the board has not altered its expectations for the group’s performance in 2010.”