26th Aug 2021 13:48
(Alliance News) - Shares in Parity Group PLC fell nearly 20% on Thursday after the recruitment firm announced that it expects a loss and lower revenue in 2021.
Shares in Parity were trading 19% lower at 7.20 pence each in London on Thursday afternoon.
The data and technology-focused recruiter blamed the disappointing trading on underinvestment in its recruitment solutions business over the last two years and the failure to develop a scalable consulting business.
As a consequence, Parity is revising its outlook for the year ending in December and will focus investment in the near-term on "restoring capability and capacity in its core recruitment solutions business", the company said.
The group now expects revenue to be in the region of GBP47.6 million, down 18% from GBP57.8 million in 2020. Net fee income is tipped to come in at GBP4.1 million and Parity expects to make a GBP100,000 adjusted loss before interest, tax, depreciation and amortisation. A pretax loss, before underlying items, of GBP750,000 is also expected.
In 2020, it posted an operating profit before non-underlying items of GBP470,000 and a statutory pretax loss of GBP325,000.
Since Mark Braund was appointed interim executive chair in June, the company said it has undertaken a review of the business and is now focusing on reinvestment in Parity's core business of recruitment solutions; targeting in-demand skills in the data and change management sectors.
"Parity is returning the focus of the business to what it does best; providing quality and innovative recruitment solutions to meet the growing demand for highly skilled resources in the data and change management sectors of the market," commented Braund.
"The quality of Parity's brand, the simplicity of our focus and the passion with which our colleagues are addressing this opportunity, positions the company well to recover both the value and performance of the business."
By Will Paige; [email protected]
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