Parity Group plc has announced its unaudited preliminary results
Parity Group plc, the UK IT Services Company, has announced its unaudited preliminary results for the year ended 31 December 2010.
Revenues of 93.0m (2009: 119.0m)
Group operating loss from continuing operations of 2.6m (2009: 0.8m profit)
Resources division: 2.0m operating profit before exceptional items (2009: 3.0m)
Solutions division: 2.0m operating loss before exceptional items (2009: 0.6m loss)
Group loss from continuing operations before tax and exceptional items of 3.1m (2009: 0.3m profit)
Exceptional and discontinued business costs of 3.0m (2009: 0.8m)
Net debt at year end reduced to 6.1m (2009: 9.8m)
Founder Chairman and CEO both rejoined Board in June 2010, committed to improving shareholder value
New Finance Director to assume role from end of March
Major management restructuring and cost cutting undertaken in second half, reducing cost base by some 3.5m
Bidding on large fixed price contracts was stopped problems on a number of projects have either been resolved or are near to resolution
Important wins in the second half included the Cabinet Office and government Buying Solutions framework
Solutions division improves to breakeven in the last quarter of 2010
New asset-based lending facility signed in December 2010, providing enhanced facilities
New Divisional structure created, around Systems, Talent Management, and Resources
Board now focused on implementing new strategies aimed at growth markets, with the necessary new management, marketing and consequent investment
Philip Swinstead, Chairman of Parity, said:
"The new management team has taken swift and decisive action to tackle the issues that were facing the group last summer. As a result, we have a cost base much better suited to the scale and nature of the business, and have started to lay the foundations for a coherent growth strategy based on the changes we see ahead in both the skill bases and types of applications required by customers.
"The UK IT services market remains uncertain, with some signs of recovery, including in the government sector. This will therefore be a year of consolidation with the focus on continuing to improve performance and finalising our new growth strategy, moving our offerings towards newer and more profitable emerging demands and technologies."
The Board of the Company also announced the appointment of Singer Capital Markets Limited as Financial Adviser and Broker to the Company with immediate effect.