REG - Parity Group PLC - Final Results

PartwayAnnouncement

21/04/2021 07:05

RNS Number : 0960W
  
Parity Group PLC
  
21 April 2021
  
 

 
 
 
PARITY GROUP PLC
 
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020
 
21 April 2021
 
Parity Group plc ("Parity" or the "Group" or the "Company"), the data and technology focussed professional services business, announces its full year results for the year ended 31 December 2020. 
 
Business Highlights

·     Transformation begun in 2019 is complete and the business returned to an Operating Profit in 2020 of £23k (2019: Operating loss of £725k).
·      Removed £4.2m of operating costs, enabling £1.6m to be invested back into the business.
·      Significantly improved operational gearing with new operating model.
·    Reduction of staff numbers and headcount costs has enabled investment in people who bring new skills.
·    Updated team's incentives to be geared towards profitable growth, managing down reliance on revenues that delivered little or no margin.

Post period end and outlook

·     Encouraging start to 2021, with new business wins including a contract from the Scottish government representing a total opportunity of up to £5m over the next three to six years, plus a number of other public and private sector wins amounting to an estimated £400,000 in External contribution during the financial year. 
·     Having significantly improved its working capital management over the past two years the Group has secured a new debt facility from Leumi ABL that will support its future growth ambitions.
·    Investment in technology has enabled greater efficiency, stronger margins and supports the growth opportunity, with more future plans in this area.
·      While the short-term economic impacts of the pandemic have affected performance, in the longer term it has accelerated the trends that underpin Parity's new strategy.
·     If the pandemic eases as expected, anticipate more growth in H2 2021 as business confidence returns.

 
Financial Highlights 
 




Year ended 31 December


2020


2019




Revenue


57.8


80.4




External Contribution


5.6


8.1




Operating profit before non-underlying items


0.5


0.4




Operating profit / (loss) 


0.0


(0.7)




Adjusted profit before tax


0.1


0.1




Loss before tax


(0.3)


(1.1)




Net cash excluding lease liabilities


0.2


1.4




 
 
Commenting on the results, John Conoley, Non-Executive Chairman of Parity Group plc, said:
"I am delighted to see the real progress made in 2020 and it is especially pleasing to be able to report a second half profit in 2020. In 2019 the Board made a decision to change the strategic direction of the business, to focus on the growing opportunity in data and to position Parity as the partner of choice for clients who want to realise the true potential of their data. Clearly despite the challenges of the pandemic, the change in strategic direction was the right decision and the growth in profitability should continue. This is my last statement as Non-Executive Chairman of Parity Group plc and I leave Parity in a strong position."
 
Matthew Bayfield, Chief Executive, said:
"Despite the Covid-19 pandemic we have been able to deliver an operating profit in 2020 and report a profit before tax in the second half of 2020, which is testament to the viability of our new strategy and to the dedication and skill of our people, who I would like thank for their hard work during a very challenging time.
"Whilst the pandemic has made this year difficult for many businesses, it has also underlined the need for strong data management and data governance in businesses and government bodies. This is exactly where Parity sits and where we see opportunity for growth. We are now operating in a truly digital economy sooner than we expected and Parity is extremely well placed to benefit from this. We are more confident than ever in our ability to deliver above average total shareholder returns in the coming years, despite the lasting impacts of the pandemic."
Investor Presentation
 
Matthew Bayfield, CEO and Mike Johns, CFO will provide a live presentation relating to the final results for 2020 via the Investor Meet Company platform on 21st Apr 2021 at 1:00pm BST.
 
The presentation is open to all existing and potential investors. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
 
Investors can sign up to Investor Meet Company for free and add to meet Parity Group plc via:
https://www.investormeetcompany.com/parity-group-plc/register-investor. 
 
Investors who already follow Parity Group plc on the Investor Meet Company platform will automatically be invited.
 
-ENDS-  




Contacts 
 


 




Parity Group PLC 


www.parity.net 




Matthew Bayfield, CEO 


+ 44 (0) 208 543 5353 




Mike Johns, CFO 


 




 


 




finnCap Ltd


https://www.finncap.com/




Jonny Franklin-Adams / Simon Hicks / Fergus Sullivan
Tim Redfern / Charlotte Sutcliffe


+44 (0) 20 7220 0500




 


 




Houston


Parity@Houston.co.uk




Kate Hoare
Alexander Clelland


+44 (0) 204 529 0549




 
 
 
Chairman's report
2020 - Progress in difficult times
We are delighted to be able to report real progress in 2020 despite the obvious challenges faced in a year that saw fundamental changes to the way we all work. In 2019 the Board made a decision to change the strategic direction of the business, to focus on the growing opportunity in data and to position Parity as the partner of choice for clients who want to realise the true potential of their data. When this decision was taken we had of course not foreseen the pandemic. However, the timing was fortuitous; while in the short term the economic impacts of the pandemic have affected our performance, in the longer term it has accelerated the trends that underpin Parity's new strategy. As a result, Parity has come through 2020 far more strongly than would otherwise have been the case and it is pleasing to be able to report a second half profit in 2020. This has been driven by the success of our transformation programme, and we remain confident of further growth in profitability in the current financial year.
Strategy
Data is an ever more valuable and important commodity in both the private and public sector. Parity's strategy is simple: to service the market for people who can help manage that valuable data. The pandemic created its challenges, but it has also created opportunity.
With more remote working, data security has become of paramount importance for almost all businesses, increasing the demand for support and skills around data which Parity provides. With even more transactions moving online, retailers need to be able to fulfil, track and analyse very large amounts of raw data. In the public sector, the pandemic has generated a huge demand for effective and efficient tracking of data by both the NHS and other government entities. Furthermore, the demand for faster, more reliable broadband has further fuelled the demand for skilled people who can manage data in both the private and public sector. I am pleased to say Parity is a partner for businesses all these markets and more, and opportunities in others are growing.
Parity is also building its reputation in the growing data analytics space. The ever increasing reliance on data for decision making is resulting in more demand for highly skilled, experience people who are capable of  collecting, curating and analysing complex data. These type of data analytics skills remain scarce, which is why Parity can play a vital role, connecting real data experts with organisations who need them.
Results
I am very pleased to report that the transformation programme embarked upon in 2019 has delivered its key objectives and at an operating level, the Group returned to a modest Operating Profit in 2020 of £23k (2019: Operating loss of £725k). This was despite revenue across the Group being 28% lower at £57.8 million, largely as a result of lower recruitment revenues as our large contract with the Scottish Government, which was not renewed in early 2019, continued to wind down. Adjusted profit before tax of £122k was very similar to the year before. This is a significant achievement in a challenging environment, reflecting the progress we have made as an organisation, without the need to furlough employees. The Group also continues to benefit from strong working capital management and debtor days remain at an excellent average of 14 days.
After non-underlying items of £447k before tax, all incurred in the first half, we recorded a loss before tax for the year of £325k (2019: loss before tax of £1.1m).
Board and people
As Parity has undergone its transformation to focus on the opportunity in data, there have been several senior leadership changes including appointments of individuals with strong technology experience and who share our vision for the new Parity. 
In June, Roger Antony stepped down, having served as Group Finance Director for the last four years. I would like to record the Board's thanks to Roger for the many years of service he gave the company and his professionalism throughout.
Mike Johns joined the Board as CFO in June and brings significant experience to the Board having worked in tech and data led businesses for more than 20 years. At board level Mike has led organisations through change and development and has considerable corporate finance experience having led successful fundraising, acquisition and sales processes.
We continue to strengthen the board and in May 2020 welcomed Gerry Brandon. Gerry is an active board member on multiple AIM-listed companies and is CEO of AIM-listed DeepVerge plc.
The Board would like to record its thanks to all of the employees who have risen to the considerable challenges of working through the pandemic. We took a decision not to furlough employees so that we could remain close to our customers and support them through difficult times. I believe this was the right decision both for the welfare of our people and in the longer term for the business. We have been very encouraged by the loyalty of our customers and the level of repeat business that we enjoy is testament to the excellent service our people provide.
Financing and dividend
On 20 April 2021 the Group signed an agreement with Leumi ABL for a new 3-year £9m asset-based lending facility replacing the previous facility from PNC. The new facility increases the amount that can be borrowed against billed and unbilled receivables giving the Group greater flexibility and it is expected that the new terms will reduce annual borrowing costs.
The Board is not proposing a dividend at this time but will keep this policy under review.
Current trading and outlook
So far in 2021 we have been successful with opportunities in the public and private sectors. We started 2021 with both new contracts and non-competitive renewals that range from supporting the NHS at a critical time, and supporting national technology infrastructure, to enabling retailers to maximise the online opportunity.
If the pandemic eases as expected, we would anticipate more growth in H2 2021 as business confidence returns. AI & Machine Learning continue to create more unstructured data challenges requiring digital and data specialists. As a consequence, we have an encouraging pipeline of both public and private sector opportunities to convert as we continue to leverage our investments in people, marketing and technology.
Finally, this is my last statement as Non-Executive Chairman of Parity Group plc and I leave Parity in a strong position. The company has made great progress over the past few years. Having completed its transformation into a data and technology focused business, it is for the first time free from past legacy issues and in 2020 has delivered an impressive performance despite the challenges of the pandemic. Now is the right time for me to hand over the reins as Chairman and I wish my successor every success in his new position.
 
Chief Executive's statement
Progress in an exceptional year
2020 was a watershed year in so many ways for so many people and businesses. It would be wrong not to start a review of the year without acknowledging the sacrifices and suffering endured by so many people, and to thank everyone for their support during what has been a very difficult time for everybody. I would obviously like to single out the people who work for Parity who, despite the obvious challenges, worked as hard as ever. They have enabled us to make real progress in the most exceptional circumstances.
Whilst the Covid-19 pandemic has made this a very difficult year for many businesses, it has also underlined the need for strong data management and data analytics in businesses and government bodies. This is exactly where Parity sits and where we see opportunity for growth - we exist to be a trusted partner of data driven transformation, through providing people, skills and consulting. Whether it be the critical nature of cyber security with large numbers of people working remotely, or the growth in online shopping that has increased demand for better data analysis of consumer trends, the need for strong data skills has never been clearer. We are now operating in a truly digital economy sooner than we expected and Parity is extremely well placed to benefit from this, having spent the last two years successfully positioning the business as a specialist in the fast-growing data skills market with the experience and credentials to back that up.
Continuing investment in technology
Investing in technology has played an important role in our transformation, enabling us to create greater efficiency, stronger margins and the ability to scale our business as we pursue our growth agenda. In the year we made progress creating and implementing new technology systems and platforms, with more exciting developments planned in due course. Specifically, during 2020 we put in place a whole new management information system covering CRM, marketing, HR and finance. Furthermore, we now have a technology platform onto which we can build additional customer-focussed technology solutions.
Transformation complete
Despite the Covid-19 pandemic we have been able to deliver an operating profit in 2020 and report a profit before tax in the second half of 2020, our first unadjusted profitable half year for two years. This change has been driven by the transformation programme we begun in 2019 to develop Parity into a data focussed business, positioned to meet the growing demand for data skills from both the public and private sector. I am pleased to report that the transformation delivered everything and more than we set out to achieve. We now have a radically different business:
·    We have a leadership team with strong data and technology experience, who all share the vision for the new Parity
·    We have invested in technology that will support our growth strategy and have more plans in this area
·    We have significantly improved operational gearing with our new operating model
·    We reassessed costs and removed £4.2m of annual operating costs, enabling us to reinvest £1.6m back into the business
·    By reducing staff numbers and therefore headcount costs, we have been able to invest in new people who have brought new skills and dynamism to the business
·    Our marketing and new business efforts have been completely overhauled and are now bearing fruit
·    We have completely changed our focus, and our team's incentives, towards profitable growth; managing down our reliance on revenues that delivered little or no margin and changing our focus to higher margin work
Whilst there has been significant change, we have also successfully preserved the core strengths of Parity that underpin our brand and market position:
·    We continue to help our clients release the value of their data by focusing on the market for data skills, a fast growing and exciting market segment
·    We have maintained our excellent reputation in the public sector as evidenced by recent new business wins
·    We have grown our community of data specialists; at a time when there has been considerable flux in the market for people with data skills we remain the specialist provider
New business wins
The start to 2021 has been encouraging. In January we won a new three-year contract from the Scottish government as its Digital Technology Resources partner to support the delivery of the Reaching 100% (R100) superfast broadband infrastructure programme. The award represents a total opportunity of up to £5.0m over the next three to six years for Parity. We also renewed a contract without competitive tender with one of our larger clients in the retail sector and we won new consultancy work form a very large multinational business. 
Since then, we have also been appointed as a partner to help connect a prominent retailer with the skilled data and digital resources it requires to support its various brands' ambitious transformation and growth plans across UK and Europe. We also have partnerships with IFS (a global leader in Cloud ERP solutions) and Cedar Bay (a partner in the IFS ecosystem) to supply skilled data and digital resources, as well as the extension of engagement with human resources platform specialist, Resilience Engine. In addition, we have secured a contract within the public sector to supply data talent for NHS Digital projects (the national provider for the NHS in England of information, data and IT systems).
We continue to attract excellent talented people into the business. At the beginning of the year, we recruited Kevin Gould, a former Commercial Lead for Accenture in UK and Ireland, who joins the management team as Commercial Director. Kevin has already helped us access new opportunities and convert tenders into new business.
Conclusion
It is a little over two years since I became Chief Executive of Parity and both the business and the environment in which it operates have changed considerably. As a result, we are now in a strong position for future growth. I have ambitious plans for this business, there is a significant opportunity for us in the data market and we want to grasp it quickly. We are more confident than ever in our ability to deliver above average total shareholder returns in the coming years, despite the lasting impacts of the pandemic. 
Parity is now more efficient, more focussed and clearer about its objectives and purpose, as well as growing its margins and profitability again. The market for data services is strong and our reputation in that market as an excellent provider of experienced people with much sought after data skills is very good, and constantly improving. The people we employ at Parity continue to be a major differentiator. I will end, as I started, by thanking them for their hard work and our shareholders for their continued support. 
 
 
 
 
Operational and Financial Review
·    The Group's restructuring and cost reduction over the past two years have enabled it to remain financially robust in a year heavily impacted by the pandemic.
·    The Group returned to an operating profit despite the pandemic.
·    Having significantly improved its working capital management over the past two years the Group has secured a new debt facility from Leumi ABL that will support its future growth ambitions.
·    Investment in new technology during the year has included the successful implementation of a new integrated financial system from Access Group.
·    Net cash[†] of £0.2m as at 31 December 2020 (2019: £1.4m).
 




Performance highlights for 2020


2020


2019


Variance2




 


Adjusted1


Reported


Adjusted1


Reported


 




Revenue (£ million)


57.8


57.8


80.4


80.4


-28%




External contribution (£ million)


5.6


5.6


8.1


8.1


-31%




Operating profit (£ million)


0.5


0.0


0.4


(0.7)


5%




Operating profit %3


8.4%


0.4%


5.5%


-8.9%


53%




Finance costs (£ million)


(0.3)


(0.3)


(0.3)


(0.3)


5%




Profit/(loss) before Tax (£ million)


0.1


(0.3)


0.1


(1.1)


6%




Basic earnings per share (pence)


(0.02)


(0.46)


0.09


(1.05)


-126%




Net cash (£ million)4


0.2


0.2


1.4


1.4


-83%




 
Notes
1 - Excludes from the Income Statement the impact of non-underlying items of £0.4m in 2020 (2019: £1.2m)
2 - Variance compares 2020 adjusted against 2019 adjusted to provide a consistent view of performance
3 - Operating profit % is calculated as operating profit as a % of External contribution
4 - Net cash represents cash and cash equivalents less loans and borrowings and excluding leases 
 
Despite a difficult year in which the majority of businesses and sectors have been affected by the pandemic, the Group has made significant progress and ends the year in a strong financial position. The transformation and restructuring of the business commenced in 2019 has been successful, resulting in both improved operational efficiency and reduced costs, and ultimately placing Parity in a position of strength to be the partner of choice for companies with complex data needs. This has enabled the Group to absorb the impact of the pandemic and the known impact of the wind down of the Scottish Government framework ("SG Framework") terminated in 2019, without the need to furlough employees or to make unplanned changes to the business.
As a result, the Group has been able to return to an Operating Profit in 2020, a significant achievement in such a turbulent year. Adjusted Profit before tax has been maintained at similar levels to 2019 and the Group delivered an unadjusted Profit before tax in the second half of 2020, reflecting the progress we have made an organisation with our transformation programme.
In addition to delivering a profitable operating model, the Group continues to manage its working capital, efficiently reducing its utilisation of debt facilities during the year.
Continuing investment in technology during the year, including the implementation of new integrated financial systems, will enable the Group to drive further operational efficiencies over coming years.
Revenue
With the Group's operating structure now more closely aligned to meeting client needs, the Board has focused reporting by client type, split between Public and Private Sectors and this shift is reflected in the segmental reporting of revenue.
The continued wind down in 2020 of the SG framework was compounded by the impact of the pandemic on new business, particularly in the private sector. As a result, total revenue for 2020 was lower at £57.8m (2019: £80.4m).
 
Segmental performance
Public sector
Despite the turmoil caused by the pandemic, the Group has demonstrated its strength in the public sector with an increase in revenue across a number of key clients. The Group has remained close to its Public Sector clients, assisting several with the transition to remote working and supporting changes they have made to projects in light of the shift in priorities forced upon them by Covid.
With many key digital transformation projects largely unaffected by Covid during 2020 and some clients, including ONS, creating new projects in response to the pandemic, non-SG framework revenues for the year increased by £7m, partially offsetting the impact of the wind down of the SG framework.
Overall public sector revenue for the year was £43.3m (2019: £58.1m). External contribution as a % of revenue was 9.0% (2019: 9.8%), the slight decline by 0.8% principally a consequence of the conclusion of the UK government FastStream managed service project that contributed £0.5m in 2019.
Private sector
With the private sector impacted most by the pandemic, new business activity dramatically slowed and projects were delayed as private sector clients assessed the impact of the pandemic during the first half of 2020. Overall revenues from the private sector declined by £7.8m to £14.5m in 2020 (2019: £22.3m) due to a combination of new business activity dramatically slowing as clients dealt with the impact of the pandemic and an active move away from a low margin partnerships arrangement with Avanade. With the focus on higher margin activities, external contribution as a % of revenue has increased to 11.7% (2019: 10.8%).
Encouragingly, the Group has seen increased activity from private sector clients and prospects during the latter months of 2020 and the beginning of 2021 and expect the increase in new business opportunities will provide a platform for growth in 2021.
 
Reconciliation of revenue to adjusted operating profit




£ million


2020


2019




Revenue


57.8


80.4




Contractor Costs


(52.3)


(72.3)




External contribution


5.6


8.1




Selling & administration expenses1


(4.4)


(6.7)




Share-based payment charges


(0.1)


(0.2)




Depreciation & amortisation


(0.6)


(0.8)




Operating profit1


0.5


0.4




 
1 - Excludes from the Income Statement the impact of non-underlying items of £0.4m in 2020 (2019: £1.2m)
 
 
Selling & administrative costs
During the year, the Group completed the operational transformation that it commenced in 2019, meeting its objective of improving operational efficiency and reducing its cost base (both fixed and variable costs). As a direct result of the transformation programme, the Group has removed £4.2m of costs from the business, enabling it to reinvest £1.6m in key new client focused roles and a new integrated IT infrastructure. The net reduction in costs of £2.6m from the transformation programme combined with earlier committed cost reductions in 2018 and early 2019 bring the total reduction in selling and administrative costs between 2018 and 2020 to £3.7m (a decrease of 46%).
Depreciation and amortisation
In accordance with IFRS 16, the 2020 results are presented with lease assets and liabilities recognised in the Group's Statement of Financial Position, where the Group is the lessee.    
Non-underlying items
The Board measures the performance of the Group after excluding costs (and income) that would not be incurred during the normal operation of the business and classify these exceptional costs under the category of non-underlying items. With the completion of the restructuring during 2020 and no significant non-underlying items being incurred in the second half of 2020 the total for the year was £0.4m (2019: £1.2m) a significant reduction on the prior year. A detailed analysis of the non-underlying items is provided in note 5.
Taxation
The tax charge on the loss before tax was £0.15m (2019: £0.03m), mainly representing a deferred tax adjustment in respect of prior periods to claim capital allowances offset by a change in the rate of corporation tax. The Group did not provide for corporation tax payable in 2020 due to the utilisation of Group relief and the availability of carried forward deductible timing differences and tax losses.
Earnings per share and dividend
The basic loss per share from continuing operations was 0.46 pence (2019: loss of 1.05 pence per share). The Group's results for both 2020 and 2019 were impacted by significant restructuring costs.
The Board does not propose a dividend for 2020 (2019: nil) but will keep the position under review.
 
Statement of financial position
Trade and other receivables
Despite the disruption caused by the pandemic and distraction inevitably caused by the implementation of a new financial system, the Group has maintained its excellent performance on trade debtors. Group debtor days (calculated on billings on a countback basis) at the end of the year were 14 days (2019: 12 days).
Overall Trade and other receivables decreased during the year to £6.1m (2019: £6.7m). This was a direct result of the reduction in contractor numbers during the year (contractors at the end of December 2020 were 514 compared with 648 at the end of December 2019).
Trade and other payables
Trade and other payables decreased during the year by £1.4m to £4.6m (2019: £6.0m). £0.7m of the decrease is directly attributable to payments in 2020 for amounts owed to contractors at the end of 2019 that were delayed due to the timing of public holidays. A further £0.3m of the decrease is the payment in 2020 of non-underlying costs accrued in 2019. The other key movements in the year were the reduction in contractor numbers accounting for a decrease of circa £0.8m which was partially offset by an increase in VAT accruals with the deferral under the government scheme of £0.3m of VAT payments until 2021.
At the year end, creditor days were 23 days (2019: 24 days).
Loans and borrowings
Loans and borrowings represent the Group's debt under its asset-based lending ("ABL") facility. This is a working capital facility and linked to the same cycle as trade receivables. The asset-based lending facility has been in place with PNC Business Credit ("PNC") since 2010 in substantially the same form and was last renewed in May 2019.
As a result of the significant improvements made in working capital management over the last two years the Group has reduced its utilisation of existing debt facilities. In 2020 the average borrowings were £1.6m and the Group only borrowed more than £3 million for 29 days during the year.
With the latest two-year extension on the PNC facility due to end in May 2021 the Board took the decision to explore new financing options that could provide the Group with a more cost effective and flexible debt facility that better meets its future growth ambitions.
On 20 April 2021 the Group signed an agreement with Leumi ABL for a new 3-year £9m ABL facility. The new facility increases the amount that can be borrowed against billed and unbilled receivables and crucially the Group will only pay fees on amounts it borrows (under the expiring PNC facility the Group were charged a 1% fee for any unutilised facility).
The new facility has a fixed rate for borrowing of 2% above base for receivables and 2.9% above base for unbilled receivables (expiring PNC facility has a rate of 2% above base for all receivables and an additional 1% charge for unutilised funds). It is expected that the new terms will reduce annual borrowing costs and the increase in amounts that can be borrowed against billed and unbilled receivables will give the group greater flexibility when utilising the facility.
Cash flow and net debt
During the period the Group generated £0.4m of cash from operating activities (excluding non-underlying items) and also benefited from a deferral of £0.3m of VAT payments until 2021 under a government scheme. These cash inflows were offset by £0.4m of cash outflows for finance costs for the Group and £0.4m of payments for 2020 non-underlying items. In addition to the normal course cash movements in 2020 the Group also made payments totalling £1m that related to one-off events in 2019, £0.7m being the payment to contractors of 2019 fees delayed due to public holidays (as previously noted) and £0.3m of non-underlying items accrued in 2019.
Defined benefit pension surplus
As a result of a strong investment performance during the year increasing scheme assets, the Defined Benefit Pension has moved from a net deficit of £0.9m at the beginning of the year to a net surplus of £0.2m at the end of the year. The Group will commence a triennial actuarial review of the pension in April 2021 and the outcome of this review (expected in 2022) will guide any future contributions the Group agrees to pay. During 2020 the Group paid £0.3m contributions to the scheme.
 
 
 
Consolidated Income Statement for the year ended 31 December 2020




 


 
 
Notes


2020
£'000


2019
(Restated2)
         £'000




Revenue


3


57,827


80,409




Contractor costs


4


(52,266)


(72,302)




External contribution


 


5,561


8,107




Operating costs before non-underlying items


4


(5,091)


(7,660)




Operating profit before non-underlying items


 


470


447




Non-underlying items


5


(447)


(1,172)




Operating profit/(loss)


 


23


(725)




Finance costs


7


(348)


(332)




Loss before tax


 


(325)


(1,057)




Analysed as:


 


 


 




Adjusted profit before tax1


 


122


115




Non-underlying items


5


(447)


(1,172)




Tax charge


8


(145)


(25)




Loss for the year attributable to owners of the parent


 


(470)


(1,082)




 


 


 


 




Loss per share
Basic
Diluted


9
9


 
(0.46p)
(0.46p)


 
(1.05p)
(1.05p)




 
1 Adjusted profit before tax is a non-IFRS alternative performance measure, defined as profit before tax and non-underlying items.
 
2 The income statement has been presented by function rather than nature. Refer to Note 1 Accounting Policies under 'Presentation of income statement'
 
 
Consolidated Statement of Comprehensive Income for the year ended 31 December 2020

 




 


 
Notes


2020

£'000


2019

£'000




Loss for the year


 


(470)


(1,082)




 


 


 


 




Other comprehensive income


 


 


 




Items that will never be reclassified to profit or loss


 


 


 




Remeasurement of defined benefit pension scheme


 


1,041


931




Deferred taxation on remeasurement of defined pension scheme 


11


(198)


(158)




Other comprehensive income for the year after tax


 


843


773




Total comprehensive income/(expense) for the year attributable to owners of the parent


 


373


(309)




 


 


 


 




 
Consolidated Statement of Changes in Equity for the year ended 31 December 2020 




 


Share
capital
£'000


Share
premium
reserve
£'000


Capital
redemption
reserve
£'000


Other
reserves
£'000


Retained
earnings
£'000


Total
£'000




At 1 January 2020


2,053


33,244


14,319


34,560


(77,753)


6,423




Share options - value of employee services


-


-


-


-


90


90




Transactions with owners


-


-


-


-


90


90




Loss for the year


-


-


-


-


(470)


(470)




Remeasurement of defined benefit pension scheme


-


-


-


-


1,041


1,041




Deferred taxation on remeasurement of defined pension scheme taken directly to equity


-


-


-


-


(198)


(198)




At 31 December 2020


2,053


33,244


14,319


34,560


(77,290)


6,886




 


 


 


 


 


 


 




 


Share
capital
£'000


 
 
Share
premium
reserve
£'000


Capital
redemption
reserve
£'000


Other
reserves
£'000


Retained
earnings
£'000


Total
£'000




At 31 December 2018


2,053


33,244


14,319


34,560


(77,612)


6,564




Adoption of IFRS 16


-


-


-


-


6


6




Revised at 1 January 2019


2,053


33,244


14,319


34,560


(77,606)


6,570




Share options - value of employee services


-


-


-


-


162


162




Transactions with owners


-


-


-


-


162


162




Loss for the year


-


-


-


-


(1,082)


(1,082)




Remeasurement of defined benefit pension scheme


-


-


-


-


931


931




Deferred taxation on remeasurement of defined pension scheme taken directly to equity


-


-


-


-


(158)


(158)




At 31 December 2019


2,053


33,244


14,319


34,560


(77,753)


6,423




 


 


 
 
 
 
 
 
 
 


 


 


 


 




Consolidated Statement of Financial Position as at 31 December 2020




 


 
Notes


2020

£'000


2019

£'000




Assets
Non-current assets


 


 


 




Goodwill


10


4,594


4,594




Other intangible assets


 


6


32




Property, plant and equipment


 


23


43




Right-of-use assets


 


247


395




Trade and other receivables


 


87


-




Investments in subsidiaries


 


-


-




Deferred tax assets


11


627


970




Retirement benefit asset


 


208


-




Total non-current assets


 


5,792


6,034




Current assets


 


 


 




Trade and other receivables


 


6,062


6,739




Cash and cash equivalents


 


3,172


4,116




Total current assets            


 


9,234


10,855




Total assets


 


15,026


16,889




Liabilities
Current liabilities


 


 


 




Loans and borrowings


 


(2,941)


(2,719)




Lease liabilities


 


(321)


(325)




Trade and other payables


 


(4,610)


(6,012)




Provisions


 


(139)


(324)




Total current liabilities


 


(8,011)


(9,380)




Non-current liabilities


 


 


 




Lease liabilities


 


(87)


(173)




Trade and other payables


 


-


-




Provisions


 


(42)


(21)




Retirement benefit liability


 


-


(892)




Total non-current liabilities


 


(129)


(1,086)




Total liabilities


 


(8,140)


(10,466)




Net assets


 


6,886


6,423




 


 


 


 




Shareholders' equity


 


 


 




Called up share capital


 


2,053


2,053




Share premium reserve


 


33,244


33,244




Capital redemption reserve


 


14,319


14,319




Other reserves


 


34,560


34,560




Retained earnings


 


(77,290)


(77,753)




Total shareholders' equity


 


6,886


6,423




 


 


 


 




 
 
 
Consolidated Statement of Cash Flows for the year ended 31 December 2020




 


Notes


2020

£'000


2019

£'000




Operating activities
(Loss)/profit for the year


 


 
(470)


 
(1,082)




Adjustments for:


 


 


 




Net finance expense


7


348


332




Share-based payment expense


 


90


162




Income tax charge/(credit)


8


145


25




Amortisation of intangible assets


 


26


52




Depreciation of property, plant and equipment


 


20


56




Depreciation and impairment of right-of-use assets


 


540


840




Loss on write down of assets


 


-


16




Lease liability credit


 


(21)


-




 


 


678


401




Working capital movements


 


 


 




Decrease in trade and other receivables


 


764


5,233




(Decrease)/increase in trade and other payables


 


(1,402)


(2,249)




(Decrease)/increase in provisions


 


(165)


282




Payments to retirement benefit plan


 


(325)


(249)




Net cash flows (used in)/from operating activities


 


(450)


3,418




 


 


 


 




Investing activities


 


 


 




Purchase of property, plant and equipment


 


-


(44)




Net cash flows used in investing activities


 


-


(44)




 


 


 


 




Financing activities


 


 


 




Drawdown/(repayment) of finance facility


 


222


(4,192)




Principal repayment of lease liabilities


 


(649)


(764)




Net movements on intercompany funding


 


-


-




Interest paid


7


(67)


(131)




Net cash flows (used in)/from financing activities


 


(494)


(5,087)




 


 


 


 




Net (decrease)/increase in cash and cash equivalents


 


(944)


(1,713)




Cash and cash equivalents at the beginning of the year


 


4,116


5,829




Cash and cash equivalents at the end of the year


 


3,172


4,116




 


 


 


 



 
 
 
 
 



 
Notes to the Audited Preliminary Results
1          Accounting policies
Basis of preparation
Parity Group plc (the "Company") is a company incorporated and domiciled in the UK. 
The financial information set out in this document does not constitute the Group's statutory accounts for the year ended 31 December 2020 or 2019 but is derived from those accounts. Statutory accounts for 2019 have been delivered to the registrar of companies. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) contained an Emphasis of Matter highlighting a material uncertainty related on going concern (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. Statutory accounts for 2020 will be delivered to the registrar of companies in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not contain an Emphasis of Matter highlighting a materiality uncertainly related to going concern and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 
The financial statements for the year ended 31 December 2020 (including the comparatives for the year ended 31 December 2019) were approved and authorised for issue by the Board of Directors on 20 April 2021. This results announcement for the year ended 31 December 2020 was also approved by the Board on 20 April 2021.
The financial information set out in these audited preliminary results has been prepared and approved by the Directors in accordance with International Financial Reporting Standards (IFRS) in conformity with the requirements of the Companies Act 2006. The policies have been consistently applied to all the years presented unless otherwise stated.
The Group meets its day to day working capital requirements through an asset-based finance facility. The facility contains certain financial covenants which have been met throughout the period. On 20 April 2021, the Group signed an agreement with Leumi ABL for a new 3-year £9m asset-based lending facility. The new facility increases the amount that can be borrowed against billed and unbilled receivables and it is expected that the new terms will reduce annual borrowing costs. The increase in amounts that can be borrowed will give the Group greater flexibility.
The financial statements have been prepared on a going concern basis. The Directors have reviewed the Group's cash flow forecasts for the period to 31 December 2022, taking account of reasonably possible changes in trading performance, including potential downsides from the ongoing impact of Covid-19. Downside sensitivities have included reduced levels of new business and in these scenarios, the Directors do not anticipate issues with the Group's financing requirements. The Group also modelled available headroom under the new facility and consider that the new facility comfortably meets the Group's financing requirements.




Presentation of income statement
During the period, the Directors undertook a review of the financial statements of the Group and this resulted in a change to the presentation of the income statement. The revised presentation, which involves moving from a classification of expenses by nature to a classification of expenses by function, was deemed to be more appropriate and provides information that is more reliable and relevant to users of the financial statements. In particular, presenting external contribution gives a better understanding of the income generated by services provided by the Group. External contribution is defined as revenue less all external contractor and sub-contracted costs. In accordance with IAS 1 'Presentation of Financial Statements', the Group has re-presented the income statements for comparative periods. Other than re-presentation of the income statement, no changes have been made to the comparative financial statements.
 
Alternative performance measures
The Group uses certain alternative performance measures to report its results as stated before non-underlying items. These are non-IFRS alternative performance measures which the Directors consider can assist with an understanding of the underlying performance of the Group and comparison of performance across periods. They are not a substitute for and are not superior to any IFRS measure.
 




Non-underlying items
The presentation of the alternative performance measure of adjusted profit before tax and adjusted operating profit excludes non-underlying items. The Directors consider that an underlying profit measure can assist with an understanding of the underlying performance of the Group and comparison of performance across periods. Items are classified as non-underlying by nature of their magnitude, incidence or unpredictable nature and their separate identification results in a calculation of an underlying profit measure that is consistent with that reviewed by the Board in their monitoring of the performance of the Group. Events which may give rise to the classification of items as non-underlying include gains or losses on the disposal of a business, restructuring of a business, transaction costs, litigation and similar settlements, asset impairments and onerous contracts.
 
Adjusted profit before tax is defined as profit before tax and non-underlying items.
 
Adjusted operating profit is defined as operating profit before non-underlying items.
 
In previous periods, the Group's results separately presented non-recurring items as a separate section of the income statement. The directors consider that all items previously classified as non-recurring are non-underlying and have reclassified these costs as such for all comparative periods in accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors'.
 




2      Segmental information
 
Factors that management used to identify the Group's reporting segments
In accordance with IFRS 8 'Operating Segments' the Group's management structure, and the reporting of financial information to the Chief Operating Decision Maker (the Group Board), have been used as the basis to define reporting segments.
 
Description of the types of services from which each reportable segment derives its revenues
During the period, the Group changed the structure of its organisation to be based around a combined operating model targeted on finding the right solution or combination of solutions to each clients' needs by way of a single account management function. As such the previous reporting segments based on the service lines of Recruitment and Consultancy are no longer the basis on which the Group is managed and resources are allocated. The basis by which the Group is now organised and its operating model is structured is by customer sectors, being the public sector and the private sector. The reporting of financial information presented to the Chief Operating Decision Maker, being the Group board of directors, is consistent with these reporting segments. As these reporting segments are supported by a combined back office, there is no allocation of overheads.
 
In accordance with IFRS 8 'Operating Segments', segmental information from comparative periods has been restated.
 
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.
 




 


Public sector
2020


Private sector
2020


Total
2020




 


£'000


£'000


£'000




Revenue


43,283


14,544


57,827




Contractor costs


(39,405)


(12,861)


(52,266)




External contribution


3,878


1,683


5,561




 




 


Public sector
2019
(Restated)


Private sector
2019
(Restated)


Total
2019
(Restated)




 


£'000


£'000


£'000




Revenue


58,117


22,292


80,409




Contractor costs


(52,426)


(19,876)


(72,302)




External contribution


5,691


2,416


8,107




 
All segment assets and liabilities are based in the UK.
  
3      Revenue
 
All of the Group's revenue derives from contracts with customers. Trade receivables, amounts recoverable on contracts and accrued income arise from contracts with customers.
 
The Group's revenue disaggregated by pattern of revenue recognition is as follows:
 




 
 


2020
£'000


2019
£'000




Services transferred over time
Services transferred at a point in time


57,790
37


80,023
386




Revenue


57,827


80,409




 
The Group's revenue disaggregated by primary geographical market is as follows:
 




 
 


2020
£'000


2019
£'000




United Kingdom
European Union


55,235
2,577


78,004
2,405




Other


15


-




Revenue 


57,827


80,409




 
The largest single customer in the public sector contributed 25% or £11.0m to public sector revenue (2019: 25% or £14.6m). The largest single customer in the private sector contributed 46% or £6.7m to private sector revenue (2019: 28% or £6.3m).
 
Revenue includes £134,000 (2019: £30,000) that was included as a contract liability at the beginning of the period. This balance was held within payments in advance in trade and other payables. The Group does not currently have any contract assets as it does not enter in to contracts where, once performance has occurred, the Group's right to consideration is dependent upon anything other than the passage of time. 
 
4              Operating expenses




 
 


 


 


2020
£'000


2019
£'000




Contractor costs


 


 


52,266


72,302




Employee benefit costs
-   wages and salaries
-   social security costs
-   other pension costs


 


 


 
2,975
342
102


 
5,008
576
159




 


 


 


3,419


5,743




Depreciation, amortisation and impairment


 


 


 


 




Amortisation of intangible assets - software


 


 


26


52




Depreciation of leased property, plant and equipment
Depreciation of owned property, plant and equipment
Depreciation of right-of-use assets
Impairment of right-of-use assets


 


 


-
20
540
-


7
49
698
142




 


 


 


586


948




All other operating expenses


 


 


 


 




Occupancy costs
IT costs


 


 


44
464


170
317




Net exchange (gain)/loss


 


 


(2)


13




Equity settled share-based payment charge


 


 


90


162




Other operating costs


 


 


937


1,479




 


 


 


1,533


2,141




Total operating expenses


 


 


57,804


81,134




 


 


 


 


 




 
During the year the Group obtained the following services from the Group's auditors:




 


 
Grant Thornton UK LLP




 
 


2020
£'000


2019
£'000




Audit of the Group, Company and subsidiary financial statements


73


65




 


 


 




Tax compliance


16


16




Total other services


16


16




Total fees


89


81




 
All other services have been performed in the UK.
 
5            Non-underlying items




 


 
 


2019
£'000


2019
£'000




Restructuring


 


 


 




-     Costs related to employees


 


370


940




-     Costs related to premises


 


(11)


230




-     Other costs


 


88


68




Receipt from previously impaired receivable


 


-


(66)




 


 


447


1,172




 


 


 


 




Items are classified as non-underlying by nature of their magnitude, incidence or unpredictable nature and their separate identification results in a calculation of an underlying profit measure that is consistent with that reviewed by the Board in their monitoring of the performance of the Group. In previous periods, the Group's results separately presented non-recurring items as a separate section of the income statement. The directors consider that all items classified as non-recurring in previous periods are non-underlying and have reclassified these costs as such.
Non-underlying items during 2020 include costs related to the ongoing restructuring of the Group, including employee termination payments and fees for professional services.
6          Average staff numbers
 
The average number of staff employed by the Group during the year was as follows:




 


 


2020
Number


2019
Number




Group


 


44


76




 
At 31 December 2020, the Group had 41 employees (2019: 57).
 
7         Finance costs




 
 


 
 


 
 


2020
£'000


2019
£'000




Interest expense on financial liabilities


 


 


67


131




Interest expense on lease liabilities


 


 


19


24




Interest income on lease assets


 


 


(4)


-




Net finance costs in respect of post-retirement benefits


 


 


266


177




 


 


 


348


332




 


 


 


 


 




The interest expense on financial liabilities represents interest paid on the Group's asset-based financing facilities. A 1% increase in the base rate would have increased annual borrowing costs by approximately £17,000 (2019: £26,000).
 
8          Taxation




 


 


 


2020
£'000


2019
£'000




Current tax


 


 


 


 




Current tax on profit for the year


 


 


-


-




Total current tax expense


 


 


-


-




 
Deferred tax


 


 


 


 




Accelerated capital allowances


 


 


(4)


(12)




Origination and reversal of other temporary differences
Adjustments in respect of prior periods

Change in corporation tax rate


 


 


2
230
(83)


(20)
57
-




Total deferred tax charge


 


 


145


25




 


 


 


 


 




Tax charge


 


 


145


25




 


 


 


 


 




The adjustment in respect of prior periods of £230,000 (2019: £57,000) largely relates to decisions to claim or disclaim capital allowances.
 
There is no current tax payable by the Group for 2020 (2019: £nil).     
 
The Group's profits for this accounting period are subject to tax at a rate of 19% (2019: 19%). The decision to reduce the rate to 17% due to be effective 1 April 2020 that was substantively enacted on 15 September 2016 was reversed during the year. The decision to keep the rate at 19% was substantively enacted on 17 March 2020. As such the tax rate of 19% (2019: 17%) has been applied in calculating the UK deferred tax position of the Group.
 
The reasons for the difference between the actual tax credit for the year and the standard rate of corporation tax in the UK applied to profit for the year are as follows:




 


 


 


2020
£'000


2019
£'000




 




Loss before tax


 


 


(325)


(1,057)




Expected tax credit based on the standard rate of UK


 


 


 


 




corporation tax of 19% (2019: 19%)


 


 


(62)


(201)




Expenses not allowable for tax purposes
Adjustments in respect of prior periods 
Tax losses not recognised 


 


 


(2)
230
85


69
57
91




Change in corporation tax rate


 


 


(83)


-




Other


 


 


(23)


9




Tax charge


 


 


145


25




 


 


 


 


 




Tax on each component of other comprehensive income is as follows:




 


 


2020


 


 


2019


 




 


Before tax

£'000


 
Tax £'000


After tax
£'000


Before tax

£'000


 
Tax £'000


After tax
£'000




Remeasurement of defined benefit pension scheme


1,041


(198)


843


931


(158)


773




 
9              Earnings per ordinary share
 
Basic earnings per share is calculated by dividing the basic earnings for the year by the weighted average number of fully paid ordinary shares in issue during the year.  
 
Diluted earnings per share is calculated on the same basis as the basic earnings per share with a further adjustment to the weighted average number of fully paid ordinary shares to reflect the effect of all dilutive potential ordinary shares.




 


 
 
 
 
Loss
2020
£'000


Weighted
average number of 
shares
2020
'000


 
 
Loss
per share
2020
Pence


 
 
 
 
Loss
2019
£'000


Weighted
average number of 
shares
2019
'000


 
 
Loss
per share
2019
Pence


 




Basic


(470)


102,624


(0.46)


(1,082)


102,624


(1.05)


 




Effect of dilutive options


-


-


-


-


-


-


 




Diluted


(470)


102,624


(0.46)


(1,082)


102,624


(1.05)


 




 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 



As at 31 December 2020 the number of ordinary shares in issue was 102,624,020 (2019: 102,624,020).
 
10       Goodwill
 
The carrying amount of goodwill is allocated to the Group's two separate continuing cash generating units (CGUs), being Parity Professionals Limited and Parity Consultancy Services Limited. 
 
Carrying amounts are as follows:




 


 
Parity Professionals Limited
£'000


Parity Consultancy Services Limited 
£'000


 
 
Total
£'000




Carrying value


 


 


 




Balance at 1 January 2019 and 31 December 2019


2,642


1,952


4,594




Balance at 1 January 2020 and 31 December 2020


2,642


1,952


4,594




 
Goodwill was tested for impairment in accordance with IAS 36 at the year end and no impairment charge was recognised. Impairment calculations include the effect of changes following the application of IFRS 16.
 
The recoverable amounts of the CGUs are based on value in use calculations using the pre-tax cash flows based on budgets approved by management for 2021. Years from 2022 to 2026 are based on the budget for 2020 projected forward at expected growth rates, with no growth assumed beyond these years. This approach is considered prudent based on current expectations of the 2021 long-term growth rate.
 
Major assumptions are as follows:




 


Parity Professionals Limited
%


Parity Consultancy Services Limited 
%




2020


 


 




   Discount rate


11.3


11.3




   Forecast revenue growth


12.2-13.3


10.0-15.9




   Operating margin 2021


3.0


4.0




   Operating margin 2022 onward


3.7-3.8


4.1-12.1




 


 


 




2019


 


 




   Discount rate


13.0


12.5




   Forecast revenue growth


2.0


10.0




   Operating margin 2020


2.4


8.5




   Operating margin 2021 onward


2.5-2.8


8.9-9.9




 
Discount rates are based on the Group's weighted average cost of capital.
 
Forecast revenue growth rates are based on past experience and future expectations of economic conditions. Growth for the CGUs is assumed to be higher than the long-term growth rate for the UK economy due to the following factors:
·      There is focused investment in growing new clients and service lines, including areas that suffered as a result of the Covid-19 pandemic;
·      The business has recruited new senior hires in sales functions to focus on new business opportunities;
·      There is the expectation of further investment in and exploitation of technology; and
·      Recent new client wins and contract extensions help to underwrite the growth forecasts.
 
A 10% change in any of the underlying assumptions used in the discounted cash flow forecasts would not lead to the carrying value of goodwill being materially in excess of their recoverable amounts.
 
11           Deferred taxation




 


2020


2019




 


£'000


£'000




At 1 January


970


1,153




Recognised in other comprehensive income


 


 




Remeasurement of defined benefit pension scheme


(198)


(158)




Recognised in the income statement


 


 




Adjustments in relation to prior periods


(230)


(57)




Change in corporation tax rate


83


-




Capital allowances in excess of depreciation


4


12




Other short-term timing differences


(2)


20




At 31 December


627


970




 
The deferred tax asset of £627,000 (2019: £970,000) comprises:




 


2019
£'000


2019
£'000




Depreciation in excess of capital allowances


632


775




Other short-term timing differences


34


43




Retirement benefit (asset)/liability


(39)


152




 


627


970




 
A deferred tax asset for deductible temporary differences is not recognised unless it is more likely than not that there will be taxable profits in the foreseeable future against which the deferred tax asset can be utilised.  At the balance sheet date, the Directors assessed the probability of future taxable profits being available against which Parity Consultancy Services Limited could recognise a deferred tax asset for previously unrecognised deductible temporary differences.  The review concluded that it is probable that future taxable profits will be available.  As such, the Directors have recognised a deferred tax asset for all deductible temporary differences available to Parity Consultancy Services Limited.  
 
A deferred tax asset for unused tax losses carried forward is normally recognised on the same basis as for deductible temporary differences.  However, the existence of the unused tax losses is itself strong evidence that future taxable profit may not be available.  Therefore, when an entity has a history of recent losses, the entity recognises a deferred tax asset arising from unused tax losses only to the extent that there is convincing evidence that sufficient taxable profit will be available against which the unused tax losses can be utilised. At the balance sheet date, the Directors considered recognising a deferred tax asset for previously unrecognised unused tax losses carried forward by Parity Consultancy Services Limited. The review concluded that given the company's history of relatively recent tax losses and the additional requirement of providing convincing evidence that sufficient taxable profit will be available, a prudent approach would be taken and deferred tax would remain unrecognised for tax losses carried forward by the company.     
 
The Directors believe that the deferred tax asset recognised is recoverable based on the future earning potential of the Group and the individual subsidiaries. The forecasts for Parity Professionals Limited comfortably support the unwinding of the deferred tax asset held by this company of £335,000 (2019: £378,000) and the forecasts for Parity Consultancy Services Limited comfortably support the unwinding of the deferred tax asset held by this company of £292,000 (2019: £592,000).
 
The deferred tax asset at 31 December 2020 has been calculated on the rate of 19% substantively enacted at the balance sheet date (2019: 17%).
 
 
 
The movements in deferred tax assets during the period are shown below:




 


 
 
 
Asset

2020

£'000


 
(Charge)/credit to 
income 
statement

2020

£'000


 
Charge to other comprehensive income
 2020

£'000




Depreciation in excess of capital allowances


632


(143)


-




Other short-term timing differences


34


(9)


-




Retirement benefit (asset)/liability


(39)


7


(198)




At 31 December 2020


627


(145)


(198)




 


 
 
 
Asset

2019

£'000


 
 
(Charge)/credit to income statement

2019

£'000


 
Charge to other comprehensive income
 2019

£'000




Depreciation in excess of capital allowances


775


(45)


-




Other short-term timing differences


43


40


-




Retirement benefit liability


152


(20)


(158)




At 31 December 2019


970


(25)


(158)




 
The Group has unrecognised carried forward tax losses of £29,392,000 (2019: £30,599,000). The Group has unrecognised capital losses carried forward of £282,441,000 (2019: £282,441,000). These losses may be carried forward indefinitely.

 


[†] Net cash represents cash and cash equivalents less loans and borrowings and excluding leases


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
FR EAELEADNFEAA