PARITY GROUP - Provider of IT services in UK, EUROPE AND USA.

With the service Sector jobs rising again, and the IT permanat and contract market on the increase once again, PARITY GROUP's Recovery Strategy is about to take-OFF. Watch these or u may miss a beauty I'd say...


BACKGROUND:
At it's peak PARITY GROUP was worth around 1 BILLION POUNDS.
Hit high of 7.40p in Yr2000, plunged due to subsequent profit warnings.

TODAY
Returned to profitability in August
Company Reorganised - Under New CEO since 2002.
Recent rights issue was 78% taken up.
Many of its core business have now starting to pick-up and revenues increasing..
Service Sector Rising fast- IT Market Gaining momentum again after 3 years...


- In a nut shell the Turning point for shares is about to be reached.

DYOR - but I promise I will write more tomorrow, but remember Jules99 when you sell these one day in the future...

ta.

Jules99.
been away folks ...hope all is well Plantec got ur email..thanks..!

StockMarketWire.com
Parity Group has swung to an H1 pretax loss of £0.89m, from a prior-same-period profit of £0.12m. Revenue was £41.2m, from £48.3m.

FINANCIAL HEADLINES
· EBITDA was £0.38 million (2014: £0.69 million)

· Non-recurring items following changes were £0.66 million (2014: £0.04 million; 2014 full year: £0.81 million)

· Loss before tax was £0.89 million (2014: £0.09 million profit)

· Net debt at period end down to £6.61 million (2014: £6.94 million) with net assets at £7.90 million (2014: £9.75 million)

· Parity Professionals operating contribution was £1.01 million (2014: £1.24 million) due to lower starting number of contractors in January

· SuperCommunications operating contribution was £0.19 million (2014: £0.32 million), including the very profitable Solutions offering offset by all digital initiative overheads

· Cash generative by year end.

StockMarketWire.com
Parity said trading to date has been in line with its expectations, as a result of which its expectations for FY EBITDA, prior to share-based payments and non-recurring items, are unchanged.

As set out in recent announcements, the strategy for the Group is now to focus on its core UK recruitment and IT Services Business. In line with this strategy the Group has, as previously announced, already implemented a GBP1 million ongoing cost-saving programme.

The re-organisation provides clear focus on our established and profitable services which maximize the effectiveness of people, processes and systems within our clients' organisations.

The Board is firmly focused on driving profitability and shareholder value and looks forward to 2016 with confidence.

StockMarketWire.com
Parity Group has substantially widened its FY pretax loss to GBP3.9m, from a loss of GBP0.41m. Revenue fell to GBP84.8m, from GBP92.3m.

The results included non-recurring costs of GBP2.06m, versus GBP0.81m, and GBP1.99m goodwill impairment, from nil, related to the Inition service offering.

CEO Alan Rommel said that despite a year of significant change, in which the company exited its digital acquisition strategy, implemented a cost-reduction exercise and streamlined the board, the results reflected a relatively stable performance.

"We are excited to have now launched our new growth strategy that builds on our core profitable businesses of Parity Professionals and Parity Consultancy and that capitalises on the enhanced value creation potential of an integrated approach across the service lines.

"We are delighted to already be seeing the early signs of success, particularly in building the enlarged client base as well as leveraging existing relationships.

"Our experienced management team is fully focused on executing this new strategy. This year has started with strong momentum carried forward from the second half of 2015 and we remain confident in the progress being made and in our expectations for the year.

"Parity is now very well positioned with a clear strategy to support our clients with the people, skills and technology they need to succeed."

StockMarketWire.com
Parity said its momentum has continued and that it now expects FY EBITDA to be slightly ahead of its original expectations.

"The Group has benefitted from increased internal collaboration to support growth in the higher margin Consultancy Services division, which has driven profit improvement and cash generation," it said.

"The Board looks forward to 2017 and continues to be focused upon improving shareholder value."

StockMarketWire.com
Parity Group said it has made a satisfactory start to the year, with clear evidence that it is are maintaining strategic momentum.

Non-executive chairman John Conoley said trading conditions in Parity's core businesses remained largely unchanged in Q1.

"We are pleased to confirm that overall trading since January remains in line with expectations," he said.

StockMarketWire.com
Parity forecast its annual operating profit from continuing operations to be slightly ahead of its original expectations.

Underlying operating profit was expected to show double-digit growth, it said, driven by progress building its higher-margin consultancy services division.

The company said it had also experienced a recovery in contractor volumes in its professionals division.

StockMarketWire.com
Technology-focused recruitment group Parity said it expected to deliver double-digit growth in its pre-tax profits in the year through June.

'We are pleased to report that the group has traded well and in line with our expectations,' the company said.

Tight cost controls and working capital management continued to provide a solid platform upon which to grow, it added.

StockMarketWire.com
Recruitment consultancy Parity warned its full year profit would fall short of expectations, partly due to a delayed contract that was now expected to be downsized.

The company had warned in September that trading in the second half was constrained by a delay in the extension on a large contract in its consultancy services business.

'This contract remains delayed and at the point of writing it is anticipated that scope will be reduced if approved,' Parity said.

The business had also been impact by project delays and reduced scope on some traditionally higher-margin project delivery contracts with fixed costs.

'It is now apparent that profit for the full year will fall short of expectations, and despite progress in group revenues, the board beliees that adjusted profit before tax will now be around breakeven for the second half,' Parity said.

It said it would incur non-recurring costs of around £300k-400k as it attempted to restructure the consultancy division, as well as incurring some legal fees.