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Parity Group encouraged by recent activity following severe impact of pandemic

The recruitment group also said it had not furloughed any staff during the outbreak in order to “remain as close as possible to its markets”

Parity Group PLC - Parity Group encouraged by recent activity following severe impact of pandemic

Parity Group PLC (LON:PTY) said it is “encouraged” by a recent return of activity and prospects to its business following what it said was a “severe reduction in early stage opportunities and projects” during the coronavirus pandemic.

In a trading update for the six months ended June 30, 2020, the recruitment firm said it expects to report revenues of around £30mln for the period, down from £44.5mln in the prior year, alongside a “modest” adjusted pre-tax profit.

READ: Parity slides as it swings to loss, warns of ‘challenging’ months ahead

Parity also said it had remained cash positive at the period end with net cash of £650,000 compared to a £1.2mln net debt in 2019, which it said was mainly due to cost reductions and payment deferrals, some of which will unwind over the next year.

The company also said the impacts of the pandemic will, in part, be mitigated by cost savings from the previous year and through the implementation of a new operating model.

Looking forward, Parity said new sales opportunities were returning following the sharp fall at the height of the pandemic, adding that it had not furloughed any staff during the period in order to “remain as close as possible to its markets”.

However, the group said it was still “too soon…to come to any conclusion on future trading prospects”.

"The [coronavirus] pandemic has had a profound impact on our sector. However the decisions we made in 2019 around restructuring the business, have meant that not only were we able to avoid furloughing any members of staff but we have been in a position to recruit seven new people to join the business during the last three months to support our growth ambitions”, said Parity chief executive Matthew Bayfield.

"Parity is a digitally enabled business and the move to working from home has been achieved without disruption to our productivity. I am very grateful to all of our staff for the way they have responded to the challenges presented by the pandemic. The management team are to be commended on the way the business has performed in extraordinary circumstances", he added.

Quick facts: Parity Group PLC

Price: 8.75 GBX

LSE:PTY
Market: LSE
Market Cap: £8.98 m
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