Specialist technology staffing company Parity Group announced the sale of Inition Limited to UK-based Digital Communication Group Limited.

The sale is for a total consideration of £200,000 payable in cash with £100,000 payable on completion and the balance payable in six months.

Inition is a wholly owned subsidiary of Parity which provides virtual and augmented reality technology experiences. In the year ended 31 December 2017, Inition made a loss before tax of £1.0 million on turnover of £2.3 million. All employees of Inition will transfer with the business.

Parity first acquired Inition in 2012.

According to Parity, due to Inition’s lack of scale and synergy with the group's strategy, the Board identified Inition as being no longer part of the core business and it was classified as an asset held for sale in the group's financial statements for the year ended 31 December 2017 with a book value of £396,000.

"The sale of Inition is a further important step to simplify and align the business in line with our stated strategy of growing our core staffing and higher margin consultancy businesses,” Alan Rommel, CEO of Parity, said. “The disposal will help to further reduce indebtedness and improve both cash flow and profitability, allowing us to make strategic investment decisions which drive shareholder value."

The group’s cash cost of funding Inition's operating losses totalled £712,000 in 2017.  The net cash proceeds from the disposal will reduce indebtedness.