REG - Parity Group PLC - Trading Statement

PartwayAnnouncement

04/08/2023 07:00

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RNS Number : 2874I  Parity Group PLC  04 August 2023

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04 August 2023

Parity Group plc

(the "Parity" or the "Company")

Trading statement

Parity Group plc (AIM: PTY), the data and technology-focussed recruitment and
professional services company, announces a trading update for the six months
ended 30 June 2023.

During H1 2023, Parity successfully won a place on the coveted public sector
RM6277 framework, which has an estimated spend of circa £2bn over the next
four years, though it is not possible at this stage to quantify what level of
revenue might accrue to Parity. This framework, which went live on 25 July
2023, represents a significant opportunity for Parity to expand further into
the public sector at a time when there are increasing headwinds affecting the
broader recruitment market.

 

In line with many others within the recruitment sector, Parity has seen market
conditions become more challenging over recent months with economic
uncertainty resulting in clients and new business opportunities deferring
hiring decisions. As a result, we are expecting first half revenue to be
10% lower than that achieved in the second half of 2022.

 

In spite of the lower H1 performance, the business has improved its working
capital management and reduced net debt to £0.7m as at the 30 June 2023
(compared with £2.3m net debt as at 31 December 2022).

 

With market conditions not expected to improve in the near term and a key
client signalling a shift towards a more global supply chain, Parity is
prioritising resources to exploit its strengths and opportunity within the
public sector, and in particular the new RM6277 framework. As a consequence,
the new business initiatives targeting the private sector, which included
permanent recruitment services, have been scaled back and with a resultant
reduction in headcount.

 

Historically, Parity's core business, servicing contract recruitment within
the public sector, has been one of the most resilient areas when recruitment
markets turn down. The Company sees this as a core strength of the business
and will be looking at how the Company can leverage this to maximise value for
shareholders.

 

 Contacts

 Parity Group plc                                        Tel: + 44 (0) 20 8171 1729

 Mark Braund, Chairman                                   www.parity.net
 Mike Johns, Chief Financial Officer

 Allenby Capital Limited (Nominated Adviser and Broker)  Tel: +44 (0) 20 3328 5656

 David Hart / Dan Dearden-Williams (Corporate Finance)
 Tony Quirke (Sales and Corporate Broking)

 

 

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