Parity Group announce preliminary year end results
The company reported another good year of growth, increased profitability and investment for the future
• Revenues up 7.1% at £91.95m (2012: £85.89m)
• Adjusted EBITDA1 of £2.53m (2012: £1.39m)
• Operating profit before non-recurring items £1.06m (2012: £0.65m)
• Group profit before non-recurring items and tax £0.65m (2012: £0.28m)
• Cash and cash equivalents £7.38m (2012: £2.87m)
• Net debt £2.53m (2012: £5.41m)
• New divisional structure established during the year
O Parity Professionals - Specialising in the sourcing, development and placing of professional staff
• Revenue £83.7m (2012: £77.5m)
• Divisional contribution2 £4.2m (2012: £4.7m)
• Contractor numbers up 12.8% to 993 at year end (2012: 880)
• Alan Rommel promoted to divisional CEO
O Parity Digital Solutions - Leading edge IT and digital marketing system development services
• Revenue £8.2m (2012: £8.4m)
• Margins improved to 23.4% (2012: 18.4%)
• Divisional contribution2 £1.93m (2012: £1.55m)
• Andy Law appointed as divisional Chairman in March 2014
• Mark Andrews appointed as divisional CEO in March 2014
1 In assessing the performance of the business, the directors use a non-GAAP measure "Adjusted EBITDA" being the measure of EBITDA, prior to non-recurring items, share based compensation and strategic initiative costs. Non-recurring items and share based compensation are detailed in note 3. Adjusted EBITDA is reconciled to operating loss in note 3.
2 Divisional contribution in this narrative refers to the segment contribution before central costs3, tax, interest, non-recurring items and investment costs.
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, "This was an important year for our Group as we completed the three year turn-round, created two autonomous divisions and put the management in place to lead their planned growth.
"The IT services division showed good growth and is now seeing the early signs of increasing demand and improved margin.
"Our smaller digital media division performed well and welcomes two experienced and successful directors to lead the way and take advantage of the growth in digital marketing and the many changes taking place in the advertising world. At this stage their strategy for the digital division is based round a combination of organic growth and small acquisitions to put specific skills in place.
"Trading in the early months has been in line with expectations.
"The Board expects a good performance from both divisions this year and further progress on our mission to substantially increase shareholder value"