Specialist technology staffing company Parity Group (PTY: LSE) published an update on trading for the six months ended 30 June 2017.

During their Annual General Meeting earlier this year, the group stated that they had a satisfactory start to the year. Parity states that the group is continuing that momentum. The Board expects group operating profit for the half year to show double digit growth compared to H1 2016, as well as to be consistent with the market’s full year expectations.

Parity also stated that the first half has also seen a further reduction in net debt, “reflecting a positive swing in the group’s working capital.”

“Our strategic focus remains on supporting the rebalancing of the business towards the more profitable Consultancy Services,” Parity stated. “Pleasingly this division has generated significant growth in its revenues compared with the equivalent period last year and is running ahead of expectations.

“The lower margin Professionals division has seen slightly lower revenues in the first half compared with H1 2016 as a result of lower public sector contractor volumes resulting from supply side uncertainty and then the transition required to deal with the IR35 taxation reforms. However, the division appears to have weathered the process more favourably than some other staffing businesses and client demand has been restored post-implementation,” Parity stated.

Alan Rommel, CEO, commented on the trading update. "We are pleased to see the continued momentum in the group’s performance as we deliver on our strategy of growing our higher margin Consultancy Services division, which enjoys longer term visibility and high levels of client engagement,” Rommel said. "Our strong cash and working capital management has further reduced net borrowing and leaves us well placed to continue to self-fund investment to grow our sales capacity."

Parity will provide a further update within its half year results for the six months ended 30 June 2017 which are expected to be announced by mid-September.

Parity delivers a range of recruitment and business and technology solutions to clients across the public and private sectors. The company operates through two segments: Parity Professionals and Parity Consultancy Services.

In trading today, Parity Group PLC traded at £10.43, up 14.25% on the day and 19.19% below its 52-week high of £12.90, set on 12 April 2017. Based on its current share price the company has a market value of £9.32 million.