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Parity Trading Update

Parity Trading Update

Parity Group plc, the UK IT services group, has issued its Interim Management Statement covering the period from 1st January 2009 to 13th May 2009.

Overall trading during the first part of 2009 has been in line with our expectations, despite challenging conditions due to the current economic environment. As we have noted before, this is causing limited visibility across our business.

Our Solutions business is starting to see the benefits of the changes in strategy and reduction in costs that we have previously reported. Contract delays and deferrals by our clients continue to be an issue which we are now more than countering with an improving rate of project wins. Further broadening of our client base remains a high priority.

In our Resources division, our contractor business continues to perform well in a tightening market and we are maintaining rigorous control over costs to sustain the rate of conversion of net fee income into EBIT. In common with most of its peers our smaller permanent recruitment business has seen a significant slowdown in activity.

Following the disposal of our Training business at the end of February, and to improve efficiency across the business, we are taking further steps to reduce overhead costs whilst making modest investments in offerings, skills, and marketing. Working capital management, and especially debtors, continues to be a strong focus in order that we sustain the good position achieved last year.

Our priority remains to improve our margins and, over the medium term, to deliver the benefits of the stronger, more focused, business that our recent actions have created.

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