10th Sep 2014 09:34
LONDON (Alliance News) - Information and marketing technology business Parity Group PLC Wednesday said it swung to profit in the first-half, after a number of years of losses as it relaunched one of its divisions.
London-based Parity posted pretax profit of GBP120,000 for the six months ended June 30, compared with a GBP520,000 loss a year earlier, as revenue rose 3.8% at GBP48.3 million from GBP46.5 million.
Parity said its results reflected a substantial reduction in non-recurring costs during the period, coming in at GBP40,000 compared to GBP790,000 a year earlier, and mainly consisted of a gain recognised on the acquisition of the assets of Golden Square Post Productions Ltd and costs associated with restructuring costs of central services and Golden Square.
Golden Square, acquired for GBP319,000 earlier this year, will become a key component of the Parity digital division, said the company.
At an operating level, Parity Professional saw an increase in revenue to GBP44.3 million from GBP42.1 million a year earlier.
In addition, the Resources business averaged 10% more contractors than in the same period last year, while there was also a good improvement in permanent recruitment.
The Talent Management business saw revenue rise 19% on the same period a year earlier, as it further extended its Fast Stream government staff selection programme.
During the first-half, the company also relaunched its new SuperCommunications division, formerly known as Parity Digital.
"This is a year of preparation and restructuring to establish a strong new player which bridges the boundary between IT and marketing services," the company said of the new division.
However, revenue for the business fell to GBP3.9 million from GBP4.4 million due to a loss of a large client.
"This year we have returned the group to profitability after six years of losses; launched our new SuperCommunications division under the highly experienced marketing leader Andy Law; and invested in both divisions to prepare for a period of expansion," Chairman Philip Swinstead said in a statement.
"We intend to have most of the elements in place by year end and look forward to 2015 and thereafter with some confidence," he added.
Parity Group shares were Wednesday morning trading 4.4% higher at 20.23 pence per share.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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