Specialist technology staffing company Parity Group (PTY: LSE) reported revenue for the year ended 31 December 2018 of £86.1 million, an increase of 2.7% compared with the same period last year.

Adjusted pre-tax profit decreased by 48.7% to £850,000 last year due to costs related to the delay and subsequent loss of a Ministry of Defence contract for Parity Consultancy Services. The delay and subsequent loss of the contract also impacted operating profit which decreased by 64.8% in 2018.

The group had earlier issued a profit warning in November 2018 over the delay of the contract.

Last year the group sold Inition, its virtual and augmented reality technology business, in order to reduce indebtedness and improve cash flow and profitability as well as focus on its core business.

John Conoley, Non-Executive Chairman of Parity Group, commented, "2018 was the year when Parity revisited its long-term strategy. We set in place the foundations for growth in a market that has continued to evolve. We invested in senior talent and marketing. 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."

Parity said a difficult second half in its consulting business prompted a restructuring of the division, to “align the cost base towards the more profitable opportunities available to the group.”

Parity has also announced that it has implemented further changes in its consulting business and announced the appointment of Antonio Acuña as Head of Consultancy Services. Acuña previously served as Head of the UK Government's open data initiative data.gov.uk and worked with the Department of Environment, Food and Rural Affairs.

In February 2019, Parity appointed Matthew Bayfield as Chief Executive Officer. In April 2019, Alan Rommel resigned as Chief Operating Officer and as a Board Director.

The group operates in two segments: Parity Professionals and Parity Consultancy Services. Revenue was broken down as follows.

“Trading in the current financial year remains in line with expectations,” the company stated. “The Board remains confident in its strategy and continues to invest to improve the operational efficiencies in the core recruitment service offering, the alignment of the service offerings from both a sales and delivery capability, and the strengthening of the senior talent within the firm to deliver an improved trajectory through 2019 and beyond.”

As of last trade, Parity Group traded at £7.00, down 10.83% on the day and 14.75% above the 52 week low of £6.10 set on 2 November 2018. Based on its current share price the company has a market value of £8.06 million.