Parity swings into profit on back of new contract wins

Parity Group PLC (LON:PTY) said it was profitable in the second half of the year to end-December 2020, its first profitable six months period for two years.

The recruiter and contract staff supplier added that, despite the coronavirus pandemic, it expects full-year profit to be in line with 2019’s adjusted number of £115,000.

Tight control of debtors also meant the group had swung into a net cash positive position at December 31, 2020, the AIM-listed group added.

In a statement, John Conoley, Parity’s chairman, said: “We enter 2021 with ever-increasing confidence in our ability to return the business to growth. We have agreed, subject to completion, a contract extension with a customer in the retail sector for a further twelve months; won work from a new consultancy customer, a very large multinational business, and we are in the very final stages of securing a significant new framework contract from a public sector customer who we have worked with before.

“Recent new business performance and the benefits of a lower cost base as a result of the successful transformation programme, should allow us to grow both net revenue and profit before tax in the coming year, despite the ongoing UK lockdown.”