Parity Group to withdraw from digital acquisition initiative
The Board has concluded that due to the inherent capitalisation constraints as an illiquid small-cap public market company it has been challenging during the last two years to acquire and build a significant digital player in line with the stated strategy.
The core business of the Group, Parity Professionals, has however evolved in recent years under Paul Davies' leadership, is in good shape and is well positioned for the future in a rapidly evolving market. The IT Solutions business is being transferred to this division from SuperCommunications. This division will be the focus and major part of the Group's future activities.
The enhanced Parity Professionals business makes good margins, is cash generative and provides a new differentiated offering in the human resources market. It will now provide its clients with services for the selection and development of their IT and other professional human capital, as well as consultancy and implementation of IT processes.
The small remaining digital technology division, SuperCommunications, will now contain Inition's leading-edge augmented and virtual reality technology and the exciting GroupSeer big data segmentation product - the latter being 40% owned by Royal Holloway University.
As a result of this new focused strategy, the Chairman is finalising a top to bottom review and expects to be able to deliver significant cost savings as the Group aligns itself to the new focused strategy and will update shareholders when the review is finalised.
The Board believes that the strategic change is essential in the circumstances and that the ongoing business offering is timely. The Group's strong management team, with an appropriate cost base, will be focused on delivering increased shareholder value.
Chairman, Philip Swinstead, said, "The new Parity Group with a strong management team has a differentiated offering which is in my view very relevant to current IT market trends. It is of course frustrating to exit from our acquisition-based digital initiative just as this market attracts large private funding globally but as a committed large shareholder, I am personally excited by the new Parity Group road ahead."