25 July 2022

Parity Group plc

Half Year Trading Update

Parity reports growth in net fee income for the first time in more than three years and a positive Adjusted EBITDA for H1 2022

Parity Group plc (AIM: PTY), the data and technology-focused recruitment and professional services company, is pleased to issue a trading update for the half year ended 30 June 2022.

H1 Highlights                             

·    Net Fee Income expected to be up to 9% higher against prior period, H2 2021.

·    The first time in more than three years that the business has increased NFI in sequential reporting periods.

·    Improved operating performance in H1 2022 following actions taken to refocus the business and streamline the cost base during the prior year.

·    Adjusted EBITDA⁽¹⁾ forecast for H1 2022 to be circa £0.3m, following an EBITDA⁽¹⁾ loss in H2 2021.

Mark Braund, Executive Chairman, said:

"Having successfully rebuilt the core recruitment business platform within Parity, we are beginning to see this capability make a positive impact on the performance of the business.

During the period, we materially improved customer relationships and the size and quality of Parity's virtual bench of skilled technology contractors, re-establishing it as one of the best of its kind addressing the public sector market.  With improvements in mobility and skills transfer, Parity's access to these skilled resources will be increasingly valuable as we focus more of our attention on the commercial (private) sector.

With this foundation in place, we are evolving our proposition to include relevant new areas of business that will support future growth.  Permanent recruitment is one such opportunity, driven by demand from current clients and the wider market. I am delighted that the investment we have made during H1 2022 to develop our permanent recruitment team is already beginning to pay back with a positive contribution to our first half performance.  We are seeking to develop this revenue stream further in the second half.

The last nine months or so have seen significant change in the make-up, focus and strength of the team.  The enthusiasm, commitment and tenacity of all my colleagues is at the core of Parity's turnaround.  For this and on behalf of the Board, I say a heartfelt "thank you".

We still have much more to do but with each step we are making, our foundations are getting stronger.  The balance of the year will be focused on maintaining our positive momentum and positioning the business for further growth in 2023."

(1)      - Adjusted to exclude non underlying items