Trading at public sector recruiter Parity Group has begun to stabilise, according to chairman Philip Swinstead.

Speaking ahead of the firm’s annual general meeting, Swinstead says: “It has been a busy time for our group since CEO, Paul Davies, and I rejoined the board last June.

“Following a major restructuring and cost saving programme last year, we completed a £7m firm placing, placing and open offer in May which provided both additional working capital and created the necessary funding for us to embark on three new initiatives in the talent management, emerging technology and cloud/business intelligence areas.

“Overall, trading in the first half has stabilised after a difficult 2010, and is in line with market expectations. Public spending remains relatively quiet, although there has been growth outside this area in our resources business.

“Looking ahead is difficult in an uncertain economy, although we are optimistic that our new initiatives will provide platforms for future growth.”