Parity Group PLC Stable and Growing
Parity Group PLC – Stable and Growing
Half Yearly Financial Report for the six months ended 30 June 2013
Parity Group plc, the UK information and digital marketing services company, announces its interim results for the six months ended 30 June 2013.
• Group revenues up 8.5% to £46.5 million (2012: £42.9 million).
• Adjusted EBITDA1 £1.13 million (2012: £0.48 million).
• Profit before tax and non-recurring items £0.50 million (2012: £0.09 million loss).
• Loss before tax £0.52 million (2012: £0.24 million loss)
• Cash at period end was £3.15 million (2012: £3.12 million).
• Net debt at period end was £5.86 million (2012: £3.94 million).
• Pension deficit reduced by £2.3 million to £6.3 million on-going pension contributions reduced from £1.09 million to £0.68 million per annum from 1 August 2013.
• Further performance improvement expected in the second half notwithstanding increased internal operational investment.
• Group moved to an AIM listing and completed a £6.6 million (net) Placing on 5 July 2013, after the period end.
• Board strengthened and new senior management appointments.
Philip Swinstead, Chairman of Parity, said: "After a period of substantial and necessary restructuring, the Group is now stable and growing. We continue to invest across the Group to improve performance, reduce costs and progress our strategic plans.
"Parity Professionals is now a fully formed independent IT services division with a strong management team improving its performance in a difficult economic climate.
"We are increasingly excited about the prospects for and development of Parity Digital, as we continue to assess a number of strategic acquisitions in the creative technology field. Over the next two years we intend to put the UK platform of our digital strategy in place.
"With a secure base, and a clear strategy in an exciting growth market, we remain confident that Parity will continue to deliver enhanced shareholder value."
Parity (AIM: PTY) announces the following Board changes.
Philip Swinstead, Group Chairman becomes Executive Chairman from 1st October 2013 in order to closely direct the Group's digital strategy.
Two new independent non-executive directors have been appointed, effective as from today.
Neal Ransome, MA FCA CF, aged 53, joins the Board as a Non-Executive Director and will take over from Mike Phillips as Chairman of the Audit Committee. Neal has recently retired from PwC, where he was a Corporate Finance Partner and Chief Operating Officer of PwC's Advisory line of service. In addition to his direct managerial experience in a large services organisation, Neal has over twenty years' experience of advising clients on their M&A activities.
Peter Luff MP, FCIPR, aged 58, joins the Board as a Non-Executive Director. Peter has more than 30 years' experience of working with and for the public sector and has been the Managing Director of a leading public affairs company. He is currently Member of Parliament for Mid Worcestershire and was Minister for Defence Equipment, Support and Technology from 2010-12. Previously (2005-10) Peter had been chairman of the Business, Innovation and Skills Committee of the House of Commons. He is also a non-executive director of Marlin Group Holdings plc, a manufacturer of advanced manufacturing systems, and an Honorary Fellow of the Chartered Institute of Public Relations.
The following Directors are resigning from the board with effect from today -
Mike Phillips, a non-executive director since 3rd November 2011 and Chairman of the Audit Committee since 22nd November 2011 has, as a result of other commitments, stepped down from the Board. The Board thanks him for his contribution and wishes him every success.
Due to the evolution of our strategic thinking over the last six months, Stephen Whyte has resigned as director and executive. He will be appointed an independent consultant to the Board for six months.
Suzanne Chase continues as our General Counsel but steps down as a Director and will take over the role from Alastair Woolley of Company Secretary.