14 September 2017 – interim results
Interim results from IT services group Parity which covered the six months to 30 June have revealed that group revenues have declined slightly to £42.9m (2016: £46.2m) although pre-tax profits have more than doubled to £0.68m (2016: £0.28m). The increase in profits is due to the group’s focus on the more profitable Consultancy Services business which has higher margins than the Professionals division, which supplies professional staff. Earnings per share emerged at 0.62p (2016: 0.23p) and net debt at the end of the period had declined to £2.3m (31 December 2016: £4.4m) due to strong cash flow. These are encouraging results and with full year results likely to see pre-tax profits of £1.6m for earnings per share of 1.3p we believe the shares are too cheap. BUY.