Parity shares surge 13 per cent after gloomy update and job cuts mooted
Shares in data and technology recruitment company Parity rallied on Friday morning after it announced it was chopping revenue guidance for its upcoming trading update.
Parity group’s shares spiked over 13 per cent on Friday morning even after it said it expects revenue in the first half of 2023 to decline 10 per cent from the second half of 2022.
However, shares dropped back down nearly 10 per cent in the afternoon.
The London-listed company explained the lowered forecast was due to poor market conditions which have “become more challenging over recent months with economic uncertainty resulting in clients and new business opportunities deferring hiring decisions.”
The firm also told investors it has scaled back business initiatives in the private sector and slashed headcount.
In the downbeat update, Parity said it is prioritising resources to “exploit its strengths and opportunity within the public sector” as an undisclosed “key” client nods towards a more global supply chain.
On the bright side, Parity has reduced its net debt to £0.7m, compared with £2.3m net debt in December 2022, by improving its working capital management.
It comes amid an extended slump for the UK-based company, with shares down over 45 per cent year to date.