20th Jul 2020 13:54
(Alliance News) - Parity Group PLC said it expects revenue for the first half of 2020 to be lower than the year prior due to the "profound" negative impact of Covid-19 but said it is encouraged by a recent return of activity.
The recruitment and professional services firm said it expects to post interim revenue of around GBP30 million, down from GBP44.5 million in the first half of 2019. It added that it expects to report a "modest" adjusted pretax profit before underlying items.
Parity said that while the Covid-19 outbreak hurt its business significantly with early stage opportunities and projects showing a severe reduction at the height of the pandemic, the extent of the damage to the bottom line was mitigated by cost savings achieved in 2019 and by the implementation of a new operating model that is expected deliver further savings in 2020.
Net cash at the end of June was GBP650,000 compared to a net debt of GBP1.2 million the year, prior, with the improvement credited to management actions including cost reductions, payment deferrals and a restructuring of the business.
"The Covid-19 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 Chief Executive Matthew Bayfield.
Turning to current trading, Parity said it has started to see a return of new sales opportunities. However, it is unable to give guidance on future trading prospects due to the general uncertainty.
Shares in Parity were untraded on Monday afternoon in London, last quoted at 7.51 pence each.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
PTY.L