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Parity Group: Right-sized, focused and making headway

"We have the right business model and we are working in a sector that’s increasing in importance,” said chief executive Matthew Bayfield

Parity Group PLC -
Demand has never been greater for experts trained in cybersecurity, digital transformation and virtualisation with millions now working from home

Matthew Bayfield is trying to walk the fine line between pessimism and optimism.

Parity Group PLC (LON:PTY), the technology-focused professional services business he runs, is making real headway.

But, as recent days have shown, with the government seemingly performing a lockdown U-turn, there is absolutely zero room for complacency.

“We don't want to be so bullish that we're standing out from the crowd. Similarly, we don't have anything to be pessimistic about,” he told Proactive.

The interim results reveal a company that is cash generative and, unlike the competition, hasn’t been forced to furlough staff or make them redundant.

This is because Parity had done a lot of the hard work ahead of the pandemic – not because the management had Nostradamus-like foresight, but because Bayfield and his team had reset the business model.

In doing so, significant layers of costs were stripped out as the firm focused on the technology sector.

This year was supposed to provide the springboard onto bigger and better things – until Covid hit.

Bayfield remains ‘glass-half-full’ on the recent turn of events.

“We are pretty much unique in this marketplace where most of our peers have been haemorrhaging staff,” he said.

“That's all because we are very much the right size and shape and operating model.”

Data and digital specialists 

That model is a deceptively simple one. Parity provides clients with access to data and digital specialists.

Its solutions are flexible. So, it recruits both temporary and permanent staff as well as providing clients with the option of a managed service.

“We can take away project delivery and give you an output, or we can even deliver training so that your existing staff are skilled to be able to do whatever it is that needs to be done,” Bayfield explained.

Demand has never been greater for experts trained in cybersecurity, digital transformation and virtualisation with millions now working from home.

READ: Parity picks up new contracts

Added solidity is provided by public sector workflow. “Around 70% of our revenue is coming from government tendered frameworks, and that's been very helpful for us,” he explained.

So, back to that conundrum - tempering optimism with reality.

“We sorted out our house ahead of this happening. So, we have the right business model and we are working in a sector that’s increasing in importance,” said Bayfield. “At the moment, there isn’t a great deal to be pessimistic about.”

Quick facts: Parity Group PLC

Price: 10 GBX

LSE:PTY
Market: LSE
Market Cap: £10.26 m
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