Parity Group announces steady performance at year end
Parity Professionals - Specialising in the sourcing, development and placing of professional staff
• Revenue £84.47m (2013: £83.71m)
• Divisional contribution2 £2.49m (2013: £2.38m)
• Launch of Parity Professionals in last quarter of the year as an independent integrated division
• Redirection of the Resources offering towards higher margin business
• Good performance from the Talent Management offering
SuperCommunications - Creative marketing and information technology solutions
• Revenue £7.80m (2013: £8.24m)
• Divisional contribution2 £0.68m (2013: £1.11m)
• Appointment of Andy Law as Executive Chairman of SuperCommunications division in May and then as a director of the Group Board in November
• Appointment of a General Manager, and new Managing Directors for Inition and Solutions offerings
• Inition refocused on Augmented Reality and Virtual Reality solutions
• Solutions makes first move into e-commerce market
• First top-level business transformation consultancy project commenced
• Encouraging results from trials of TechLab's GroupSeer - a social media search algorithm project in partnership with Royal Holloway University
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 and share based compensation as detailed in note 3.
2 Divisional contribution in this narrative refers to the segment contribution before Group costs3, tax, interest, non-recurring items and share based payment charge.
3 Group costs includes director's salaries and costs relating to group activities and are not allocated to reporting segments.
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.
The table below highlights the good progress the Group has made since the new management returned in 2010.
Philip Swinstead, Chairman of Parity, said, "I am pleased that we managed to slightly improve our overall performance in 2014 and reduce substantially the non-recurring costs as our divisional restructuring programme came to an end. This was achieved during a year of significant change. Looking ahead we now have two well-managed independent divisions concentrating on their very clear strategies, without further significant restructuring or re-direction.
"Parity Professionals is a stable well-managed business which must now continue to migrate certain of its offerings into the most attractive long-term growth sectors of its markets. I expect this to restrict its growth prospects this year, but it will ensure that it can then move forward thereafter.
"We can now look forward to SuperCommunications winning Board-level business transformation projects through its new consultancy offering, whilst our decision to focus the Inition brand on scalable Augmented Reality and Virtual Reality solutions is already bearing fruit. I am also most encouraged by the trials of the GroupSeer search engine technology prototype, in the social media space.
"Trading in 2015 has started in line with our plans, and we can look forward to a year of continuing strategic and financial progress."