Daily NewsView All News
Parity Group Plc (PTY:LSE), the technology staffing and training firm has today published a trading statement.
During the period since the group's last Interim Management Statement of 13 November 2009, it has become clear to management that the rate of improvement in revenue in Solutions will be slower than anticipated. Parity continues to experience slowing customer decision-making and is now seeing a slowing of the rate of implementation of already secured projects. This process of deferral, combined with an unfavourable business mix, is having a dilutive effect on gross margins.
The Group has now largely completed deployment of a new management information and control system which gives better visibility and data on all the Group's activities.
Parity continues to expect that Solutions will show a return to profit in the second half. However, even small revenue delays have a disproportionate effect on profitability. As a result of these factors, the Board expects that the Group's pre-tax profit for the second half of the current year will be approximately 300,000 Pounds less than that reflected in current market expectations.
In early trading Parity's shares were down 16% to 13 Pence.