9th Jul 2015 09:19
LONDON (Alliance News) - IT services company Parity Group PLC on Thursday said it has withdrawn from its digital acquisition activities and said it has restructured its divisions.
Parity said that, following a review of its cost structure flagged after its annual general meeting in May, the company concluded that "due to the inherent capitalisation constraints as an illiquid small-cap public market company it has been challenging during the last two years to acquire and build a significant digital player in line with the stated strategy."
Parity Professionals, the group's core business, has been performing well and, as a result, the IT Solutions arm of the company will move from its SuperCommunications unit into the Professionals arm. Parity said the move will create a Professionals division offering good margins and solid cash generation.
SuperCommunications, its remaining digital technology arm, will now include its virtual reality technology and big data segmentation product.
Parity Chairman Phil Swinstead will now lead a full review of the business in order to deliver further cost savings and will update once the review is completed.
Parity shares were up 2.6% to 10.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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