20th Apr 2018 16:56
LONDON (Alliance News) - Parity Group PLC said Friday that it has sold its wholly owned subsidiary Inition Ltd for GBP200,000 to Digital Communication Group Ltd.
The amount will be paid in cash with GBP100,000 payable on completion and the balance payable in six months.
Inition delivers virtual and augmented reality technology experiences. In the year ended December 2017 is made a pre-tax loss of GBP1.0 million on turnover of GBP2.3 million.
It had a book value of GBP396,000 in Parity's year end financial statements. Following the disposal, Parity is hoping it will benefit from the reduction in the cash cost of funding Inition's operating losses, which totalled GBP712,000 in 2017, and the net cash proceeds which will reduce indebtedness.
Alan Rommel, chief executive officer, said: "The sale of Inition is a further important step to simplify and align the business in line with our stated strategy of growing our core staffing and higher margin consultancy businesses. The disposal will help to further reduce indebtedness and improve both cash flow and profitability, allowing us to make strategic investment decisions which drive shareholder value."
Shares in Parity closed up 4.2% at 11.10 pence each.
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