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Parity Group shares surge after upbeat trading update

The firm's more profitable consultancy services has generated significant growth in revenues compared with the equivalent period last year and is running ahead of expectations
Parity's net debt fell in the first half, reflecting a positive swing in its working capital

Parity Group PLC (LON:PTY) shares jumped higher today after the company released an upbeat trading statement which projected double-digit growth in operating profit in the first half of the year to the end of June.

In mid-morning trading, Parity shares were up 1.12p at 10.25p, a 12.3% jump.

WATCH: Parity Group Plc: The 'best-kept secret' in recruitment and consultancy

In its update, the AIM-listed firm said net debt fell in the first half, reflecting a positive swing in its working capital. Net debt as at 30 June 2017 was £2.3mln, down from £4.4mln at end-December 2016. 

The technology-focused consultancy firm said it's more profitable consultancy services has generated significant growth in revenues compared with the equivalent period last year and is running ahead of expectations.

Meanwhile, Parity's lower margin professionals segment has seen slightly lower revenues in the first half due to lower public sector contractor volumes which was, in turn, caused by supply side uncertainty and the transition required to deal with IR35 taxation reforms.

Parity said: "However, the division appears to have weathered the process more favourably than some other staffing businesses and client demand has been restored post-implementation."

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