logo-loader
Parity Group plc

Parity profits plunge after losing consultancy services contract with Ministry of Defence

"Trading remains in line with expectations and the board's confidence in the refreshed strategy is reflected in its continuing investment," said John Conoley, non-executive chairman

military
Profits were hit by costs related to the delay and subsequent loss of the MoD contract

Parity Group PLC's (LON:PTY) profits plunged in 2018 after the Ministry of Defence (MoD) decided against renewing a consultancy services contract with the company.

Adjusted pre-tax profit dropped 48.7% to £850,000 last year due to costs related to the delay and subsequent loss of the MoD contract.

READ: Parity shares under the cosh after losing staffing contract with Scottish government

Revenue increased 2.7% to £86.1mln but was led higher by the lower margin recruitment business.

The adjusted pre-tax margin fell to 1.0% from 2.0% last year.

Last year, the company took action to address its performance by exiting its loss-making virtual reality business Inition and focusing on its higher-margin data consultancy services division.  

"Reorganising and reshaping of our proposition will build on our strengths as trusted partners with deep and lasting relationships that empower clients to make bold data-led business decisions,” said John Conoley, non-executive chairman.

"Trading remains in line with expectations and the board's confidence in the refreshed strategy is reflected in its continuing investment.”

Shares dropped 10% to 7p in morning trading.

Quick facts: Parity Group plc

Price: £0.08

Market: LSE
Market Cap: £7.95 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Oneview Healthcare taking on the senior living market with...

Oneview Healthcare PLC (ASX:ONE) CEO James Fitter tells Proactive the Ireland-based company is moving into the senior living market, deploying its technology platform with Colorado-based Christian Living communities in the first half of 2020, and with a 'large operator' in Australia, to develop...

3 hours, 47 minutes ago

2 min read