29th Mar 2019 10:10
LONDON (Alliance News) - Parity Group PLC on Friday said it expects annual revenue to decline after a framework contract with the Scottish government was not renewed.
Parity shares fell 9.7% trading at 7.90 pence each on Friday morning.
The data & technology company said that a framework contract for the placement of staff with the government of Scotland has not being renewed. Therefore, the firm will continue to generate revenue from the existing placements for the next two years but will not make any new placement.
This will result in revenue for the year coming in 10% lower than market expectations. For 2017, Parity posted revenue of GBP83.8 million.
However, the revenue reduction will be offset by higher costs savings, the company said.
"Therefore the company does not expect a material impact on profits and continues to expect to meet current market expectations for profit performance in the current financial year," Parity explained.
It added: "The exact impact on revenues from the loss of this contract is hard to quantify but with revenues in the wider group running slightly ahead of management expectations, the company estimates that its revenues for the year as a whole are likely to be around 10% lower than current market expectations."
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