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Parity Group plc, the UK IT Services Company, announces its audited preliminary results for the year ended 31 December 2011.


&middot Revenues of &pound80.1m (2010: &pound93.0m)

&middot Group Results:

o Divisional Contribution1 up 28% to &pound5.83m (2010: &pound4.55m)

o Adjusted EBITDA2 of &pound0.36m (2010 : &pound1.98m loss)

o Cash at year end &pound5.2m (2010: &pound0.2m)

o Net debt reduced to &pound1.3m (2010: &pound6.1m)

o Central costs3 reduced to &pound4.8m (2010: &pound6.5m)

o Non-recurring items on property and IT restructure &pound1.47m (2010: &pound2.82m)

o Group loss for the year reduced to &pound2.30m ( 2010: &pound6.13m)

&middot Divisional contribution:

o Resources &pound3.51m (2010: &pound4.08m)

o Systems &pound1.86m (2010: loss of &pound0.07m)

o Talent Management &pound0.46m (2010: &pound0.54m)

&middot Successful Placing and Open Offer in May 2011 raised &pound6.4m net for working capital and investment in restructuring the business

&middot Resources division showed an improved trend in H2 with a 10% increase in contractor numbers

&middot Systems division launched new emerging technology TechLab initiative, and OneParity virtual workforce service offering

&middot Talent Management division renewed its Northern Ireland graduate development programme

&middot InvestNI sponsoring Parity's new Belfast emerging technology TechLab

&middot Group IT system moved in-house with significant future savings

1 Divisional contribution in this narrative refers to the segment contribution before central costs3, tax, interest, non-recurring items and investment costs.

2 In assessing the performance of the business, the directors use a non-GAAP measure "Adjusted EBITDA" being the statutory measure, prior to non-recurring items and share based compensation. Non-recurring items and share based compensation are detailed in note 3. Adjusted EBITDA is reconciled to operating loss in note 3.

3 Central costs represent all centrally managed costs, and include Corporate, Finance, HR, IT and Property costs.

4 This announcement contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Parity Group plc. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to (i) adverse changes to the current outlook for the UK IT recruitment and solutions market, (ii) adverse changes in tax laws and regulations, (iii) the risks associated with the introduction of new products and services, (iv) pricing and product initiatives of competitors, (v) changes in technology or consumer demand, (vi) the termination or delay of key contracts, (vii) fluctuations in exchange rates and (viii) volatility in financial markets.

Philip Swinstead, Chairman of Parity, said:

"I am pleased to report that we made good progress in 2011, stabilising and consolidating the business after significant cost reductions and business re-orientation in 2010, whilst at the same time developing and implementing new growth-oriented strategies for the future.

"Progress in the current year to date has been encouraging. The Board can now look forward to building on a much healthier base and, although the UK economic backdrop remains uncertain, the Board is gaining confidence in its ability to significantly increase shareholder value through a combination of the redirection of the current businesses and its new strategic initiatives."


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