Parity Group has disappointing H1
SuperCommunications operating contribution was £0.19m (2014: £0.32m), including the very profitable Solutions offering offset by all digital initiative overheads
The company stated, “This reporting period has been one of great change for the Group. In recent announcements we stated that we had taken the decision, reluctantly, to halt our digital acquisition initiative when the final possible funding options became unviable.
“However, in parallel with that initiative we have for four years been reshaping and strengthening our core business - Parity Professionals - with its human capital "Source, Develop and Inform" service. Parity Professionals now represents the main focus of our growth plans as it benefits from a unique and exciting offer, and a clear strategy for growth under a revitalised and young executive management team.
“In the past few months we have reorganised the Group to reflect this new direction. All executive management are now in place and a significant £1 million plus cost-cutting exercise has now been possible which will be fully effective by the year end.”
Chairman Philip Swinstead commented, "It is frustrating to have to withdraw from our digital acquisition initiative when it was ready to take off through a series of acquisitions but that is history - funding was not available. The Group is now concentrating on its well established Parity Professionals business with its long-term reputation for excellence and profitable growth, led by a young and dynamic management with great ambition.
“With all the changes of the last few months Parity Professionals, now including our Solutions business, is in encouraging shape with profitable business offerings and a very focussed strategy - helping organisations ensure that their professional staff are sourced, developed and informed in today's dynamic decision making environment.
“The carefully controlled but rapid change of direction means that we expect a better second half to 2015 than last year and significant improvement in 2016. We expect to be cash generative by the end of 2015.
“We are all committed to increasing shareholder value through Parity Professionals, which is enjoying good sales success in the second half of this year."
Michael Stuart Aspinall, who has just joined Parity Group as group finance director will play a key part in the company's development in the next six months.