Partway Share Discussion Threads

[nico115] 20/4/2018 15:57

We are not asleep Just can't afford to buy 10m shares !! : (

[kemche] 20/4/2018 15:22

Market asleep on the RNS? Good news. At first glance add back £1m to the profit figure and £712k to the cashflow. Bring on the acquisition.

[aishah] 20/4/2018 15:16

Disposal of non-core subsidiary

The Board of Parity (AIM:PTY), the technology focussed consultancy and staffing business announces the sale of Inition Limited ("Inition") to Digital Communication Group Limited, a UK registered company, for a total consideration of GBP200,000 payable in cash with GBP100,000 payable on completion and the balance payable in 6 months.

Inition is a wholly owned subsidiary which delivers virtual and augmented reality technology experiences. In the year ended 31 December 2017, Inition made a loss before tax of GBP1.0m on turnover of GBP2.3m. All employees of Inition will transfer with the business.

Due to its 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 GBP396k. Following the disposal, the Group will benefit from the reduction in the cash cost of funding Inition's operating losses, which totalled GBP712k in 2017, and the net cash proceeds which will reduce indebtedness.

Alan Rommel, CEO, commented:

"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. 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."

[rubberbullets] 20/4/2018 11:34

Massive pension hole

Swinstead dumping is bad news

[insideryou] 19/4/2018 14:22

Dreadful share for years now. Shame. Thought it would pull around

[nico115] 18/4/2018 15:35

Yes napoleon with 10m around(last RNS holding)I'm going to wait to buy lower down

[napoleon 14th] 18/4/2018 14:53

Bad egg, this one.
Not the business, but the share.
Couldn't move a 25,000 sell online, had to call broker who had to go to market.
Sold at 11p in the end.

IMO this will go on until the Swinsteads find a block buyer or run out of shares to sell, but that's a fat black cloud overhang, so I'm OUT.

See what's up later....

[leoboy] 13/4/2018 18:45

+eysenck - Philip Swinstead now has 10,075,351 9.87% his wife has 1,968,400 same total as prev' Philip Swinstead & wife – 02-04-18 -12% = 12,043,751 11.79%

[+eysenck] 13/4/2018 17:33

Swinstead reducing further. I think he held about 14% now under 10%. His remaining holding could take a while to get rid of and not do the share price any good.

[inbrackets] 11/4/2018 18:06

Some long delayed trades etc, but they all match in exact numbers so they could be Bed and ISAs with any fees paid separately. But who knows?

[+eysenck] 11/4/2018 17:39

Weird trades posted late today. Anyone make sense of them?

[hibberts] 11/4/2018 11:17

AISHAM.

Thanks for the TM view.

[hibberts] 11/4/2018 11:17

AISHAM.

Thanks for the TM view.

[aishah] 10/4/2018 10:49

TechMarketView:

Parity celebrates business shift

There’s a good reason why this line is front and centre of Parity’s results announcement: “Strong momentum in Consultancy Services drove double digit profit growth”. This is at the heart of CEO Alan Rommel’s ambitions i.e. to rebalance the Group towards higher margin consultancy services, improve revenue visibility, and, as a result, boost the value of the business for shareholders.

It is also a more positive message to lead on than the fact Group revenues declined by 8.7% in the year to end December 2017, finishing the twelve months with revenues of £83.2m. This was a result of a 7.9% decline for Parity Professionals (the recruitment business) to £80.04m, representing the lion’s share, but a 78.7% increase for Parity Consultancy Services (PCS), to £9.54m.

PCS now represents 11% of revenues; we understand the number of consultancy clients - who tend to be existing Parity Professional clients – has risen from seven to 21. The proportion has steadily increased since Rommel became CEO in 2015; at that time consultancy represented just 2% of revenues. Crucially, PCS now represents 33% of contribution vs. 25% in FY16. The result at the Group level has been a 16.4% increase in adjusted operating profit to £2.06m (2.5% operating margin) – this performance was expected, as it had been outlined in the December trading update (see Parity above parity!). When Rommel joined the business, Parity had been loss making so this represents a turnaround; the momentum suggests the business will be debt free by the end of this year.

There are also indications that the Parity Professionals business is heading in the right direction. The results statement points to improved new sales KPIs. It appears the business is having some success navigating its way through market disruption caused by changes to the taxation of public sector off-payroll workers (IR35). The noted synergy between ‘Consultancy’ and ‘Professionals’ should also be helping both areas of the business – PCS is at an advantage if it can quickly source niche digital skills. Recent contract wins signal a good start to the current year (see Good news for Parity ahead of results). In the months ahead, the challenge will be shifting market perception of Parity away from being a pure recruitment business. Having a strong focus for the PCS business – notably Data Management as a lead offering – may well help. Recent partnerships, like that with data mapping tool provider, Magnitude, with whom it has already worked at the MoD, will serve to accelerate this agenda

hxxp://www.techmarketview.com/ukhotviews/archive/2018/04/10/parity-celebrates-business-shift

[kemche] 10/4/2018 10:44

Inition written down and held on the BS at a net £396k as an asset for sale. They are giving a prudent indication of what it's worth - anything above and it will crystallise a profit and vice versa. Once shot of it will reduce the associated running costs.

Concentrate on the conversion of the profit to cashflow, and the reduction in debt, to get a good measure of the company.

[weatherman] 10/4/2018 10:17

But there are lower costs on ongoing operations. And if they can sell or close Inition, they will be looking cheap as consultancy grows.

[kemche] 10/4/2018 09:01

spooky, there is that of course.

[spooky] 10/4/2018 08:55

Looks fine, but they didn't make a profit if you include Inition and their two continuing businesses actually made a lower contribution this year than they did in 2016.

[chrisdgb] 10/4/2018 08:46

Looks a really nice situation to build long term positions, good stuff........

[kemche] 10/4/2018 08:08

The consultancy margins, cashflow conversion and the repayment of debt are the standout features here. The outlook statement none too shabby. Inition still for sale and the possibility of acquisition - presumably in the consultancy division.

[inbrackets] 10/4/2018 07:21

Plus Inition written down and pension deficit substantially down and looking very manageable. No dividend, but being waved as a future carrot.

[elbillo] 10/4/2018 07:16

Results don't look too shabby. Good to see net debt reducing significantly and improved margins. Outlook for 2018 very encouraging should be cash positive by year end at this rate.

[aishah] 09/4/2018 10:22

Techinvest added 50,000 to their portfolio last month. A New Year Tip at 10.25p. Buy is their stance.

[chrisdgb] 09/4/2018 10:07

Expecting good things tomorrow.............