REG - Parity Group PLC - Trading Update

PartwayAnnouncement

26/01/2023 07:00

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RNS Number : 8904N  Parity Group PLC  26 January 2023

Parity Group plc 

("Parity" or the "Company")

 

Trading Update

 

 

 

Parity Group plc (AIM: PTY), the data and technology-focused recruitment and
professional services company, is pleased to issue a trading update for the
financial year ended 31 December 2022 ("FY2022").

FY2022 Highlights

The board is pleased to report a significantly improved operating performance
despite the expected reduction in net fee income during the year.

·    Net Fee Income for FY2022 expected to be £3.5m compared to £4.1m in
FY2021.

·    Adjusted EBITDA((1)) for FY2022 expected to be circa £0.4m vs £0.1m
in the prior year.

·  Significant improvement in operating performance in FY2022 with
anticipated break even at Adjusted Operating profit ((2)) level compared to a
£0.3m loss in the prior year.

·    Other income in FY2022 of £1m from the sale and licence back of the
Parity trademarks in the UK and EU.

·    Profit before Tax for FY2022 expected to be £0.5m vs loss of £1.1m
in the prior year.

 

During FY2022, Parity has refocused its business around recruitment,
increasing customer-facing headcount and establishing an efficient operating
model. This has enabled the business to significantly improve profitability
during the period, and with the sale and licence back of the trademark, to
deliver a profit before tax which we expect to be £0.5m.

The income from the trademark sale and licence back will enable Parity to
invest further in customer-facing roles to generate new business and leverage
the operating model of the business.

 

Mark Braund, Executive Chairman, said:

"We have successfully transitioned the business to focus on the core
commercial recruitment capability of Parity. As we look forward, Parity is a
more agile, albeit smaller business with a strong work culture and a
much-improved focus on what we are 'great' at.

"This foundation, along with the additional funding from the sale of the
trademark, creates a solid base from which we can continue to evolve the
business.  Whilst the outlook for the wider economy is becoming less certain,
our strength in providing skilled technology resources to support the almost
relentless demand for digital transformation services, places Parity in a
reassuringly solid position.  We aim to take advantage of the platform we
have established to invest carefully in relevant new areas of business that
will support longer-term sustainable profit and growth.

"The enthusiasm, commitment and tenacity of all my colleagues is at the core
of Parity's turnaround.  For this and on behalf of the Board, we say a
heartfelt "thank you".

"We remain focused on maintaining our positive momentum and positioning the
business for further growth."

(1)      Adjusted EBITDA is defined as operating profit before finance
costs, tax, depreciation, amortisation and non-underlying items.

(2)      Adjusted Operating profit is defined as operating profit before
finance costs and non-underlying items.

 

 Contacts

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

 Mark Braund, Executive 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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