Troubled Parity Group is having to ask shareholders for more cash, but the recruitment division is continuing to prosper.
Chairman John Hughes told Recruiter that the resourcing, mainly recruitment, division was “the jewel in the crown”.  Hughes said he regarded it as being at the core of the company.

Last month, Parity said it needed to raise £14.7m cash. The firm added that if it failed to secure backing for the move at a shareholding meeting  on 24 April, it may have to sell off a division or risk going into administration.

Institutions have largely underwritten the share issue. “It’s not  matter of raising the cash, “said Hughes. “We’ve done that. It’s just a question of it getting approved.” He said he was confident of success.

Sales in the resourcing division for 2005 rose to £95.9m, compared with £85.6m in 2004. Sales for the group, which also provides computer and IT-related services, including training, rose to £138.5m, from £132.5m.

Operating profit for resourcing rose to £1.85m, from £1.32m. But the group’s operating loss widened to £6.5m, from £4.7m.
It needs the cash to cut its debts, run up due to losses in its training division. It has restructured and cut down on the number of properties it occupies.  
The firm’s shares fell more than 70% on 30 March, the day it announced its losses and share raising.