Parity Group PLC’s (LON:PTY) successful restructuring and transformation programme helped the IT recruitment group recover from the initial impact of the Coronavirus pandemic, said Lorne Daniel, director of research at finnCap.
The broker initiated coverage of Parity with an 18p target price.
Parity reported its financial results for 2020 earlier today and said the start of 2021 had been encouraging.
“These results show that the specialist IT contract recruitment group performed well through 2020, recovering from the initial impact of the pandemic in 1H to deliver an underlying profit in 2H and across the full year. The direction of travel appears very positive,” said Daniel in a broker note.
“This was largely due to a successful restructuring and transformation programme, led by a dynamic new management team.
“The business has been radically slimmed and most staff replaced.
“Most importantly, a strategic shift has seen Parity focus this combined offering on the rapidly growing data industry; finding and providing the key people and skills required for the huge demand for efficient data gathering, management and analysis, positioning itself as the partner of choice for clients who want to realise the true potential of their data.
“We initiate coverage on the back of this transformation which has left Parity in a very strong position, confident of further profit growth, with COVID accelerating the digital transformation trends that underpin its new strategy.”