Preliminary Results to 31

December 2015Alan Rommel - Chief Executive OfficerMike Aspinall - Group Finance Director March 2016

2015 – Year of Change

Exciting, complementary hubs in classic structure

New direction – Change in strategy to build upon aligned and profitable

foundations New management

Established platform with flexibility in growth markets we know and can leverage Hit expectations. Core

business success with demonstrable

improvement in metrics through the year

Developing Consultancy business supported by a People business allows

competitive cost structure

Strategy

Parity Professionals

Parity Consultancy Services

Pro

ject Wo

rkT&M

Wo

rk

Aligned Sectors Practice LeadersSkilled Expertise

“Maximising the effectiveness of your people, processes and systems – Driving change that enhances the

performance of your business.”

Our Vision

Resilient EBITDA in a year of change

2015: £1.58m 2014: £1.60m

Strong H2 performance

H1: £0.38m H2: £1.20m

Positive operating cash flow

£0.18m (2014: -£1.87m)First positive cash flow in

over five years

Exit of digital acquisition strategy

£1.00m cost saving programme£2.06m non-recurring costs

£1.99m impairment

Lower pension contributions

Payment holiday in 2015. Payments linked to

performance and affordability for next 3 years

Stable cash and working capital

Cash: £2.65m (2014: £2.97m)Debtor days: 31.0 (2014: 33.0)

Creditor days: 34.9 (2014: 32.1)

Financial Highlights 2015

Continuing Operations

2015£000

2014 £000

Revenue 84,842 92,264

Divisional EBITDA 3,077 3,174

Central Costs (1,497) (1,570)

EBITDA before share based payment 1,580 1,604

Share based payments (152) (242)

EBITDA 1,428 1,362

Depreciation (719) (477)

Operating Profit 709 885

Finance costs net of income (566) (479)

Non-recurring costs (4,052) (814)

Profit/(Loss) before tax (3,909) (408)

Tax (6) (25)

Profit/(Loss) after tax (3,915) (433)

• Full year revenue down 8.0%, due to low starting point to 2015

• Full year EBITDA resilient, driven by strong H2 performance

• H1: £384k

• H2: £1,196k

• Non-recurring costs due to exit of digital acquisition strategy announced 9th July:

• £1,871k restructuring costs

• £187k transaction costs and property provisions

• £1,994k goodwill impairment charge for Inition

Income Statement

Public Sector

Other

Manufacturing

Health

Utilities

EducationDefence

Market Sectors

2015£000

2014 £000

Intangible assets 7,113 9,307

Tangible assets 180 602

Deferred tax 507 536

Trade and other receivables 15,680 15,551

Cash and cash equivalents 2,648 2,974

Asset based lending (10,027) (9,582)

Trade and other payables (8,574) (8,314)

Provisions (14) (82)

Retirement plan liability (1,491) (2,101)

Net assets 6,022 8,891

Net debt (7,379) (6,608)

• Intangible assets reduced £2,194k due to

• £1,994k goodwill impairment (2014: nil), and

• £546k amortisation (2014: 216k), offset by

• £349k IP additions (2014: £572k)

• Tangible assets reduced £422k due to

• £341k write down on assets in the Golden Square business (2014: nil)

• £173k depreciation (2014: £261k)

• Net debt increased £771k to £7,379k, due to one off payments

• Cash non-recurring of £1,245k

• Final earn out payments of £250k

• Stable cash and working capital position

• Debtor days: 31.0 (2014: 33.0)

• Creditor days: 34.9 (2014: 32.1)

• New agreement with pension trustees to lower deficit reduction contributions, linked to performance and affordability

Balance Sheet

Professionals 2015£000

2014 £000

Revenues 78,190 84,466

Divisional Contribution 2,276 2,491

Divisional Contribution Margin 2.9% 2.9%

Professionals

• 2015 impacted by low start point

• Solid growth during the year: • H2 revenues up 7.2% and contribution up 19.3% on

H1

• Both marginally up on equivalent period in 2014

Consulting 2015£000

2014 £000

Revenues 6,652 7,798

Divisional Contribution 801 683

Divisional Contribution Margin 12.0% 8.8%

Consulting

• 2015 benefitted from new MoD win

• Strong increase in divisional margin, helped in part by £0.62m reduction to overheads

Combined 2015£000

2014 £000

Revenues 84,842 92,264

Divisional Contribution 3,077 3,174

Divisional Contribution Margin 3.6% 3.4%

Combined

• Improved margin % due to increased contribution from Consulting

• 2015: 26.0% of total contribution

• 2014: 21.5% of total contribution

Divisions

Operating Review

Consolidation

Solid progress on realigned strategy with

focus on growth sectors

Identified significant

savings (£1m) – management,

property

Co-location in

LondonIntegration on

sales and delivery of

projects

Selective re-investment to build

consultancy proposition

Rapid access to consultancy

expertise without high bench cost

• Deep sector and skills knowledge across the UK market

• All sales staff have a skill or a market focus

Deep sector and skills knowledge

across the UK

Depth and breadth of service

offering

• Service expertise providing quality for each offering and opportunity toleverage additional services

• Geographic presence and local knowledge

Productisation

• Success with packaged solutions for recruitment, development andmanaged solutions

• Opportunity to create managed solutions using Group breadth

High quality of staff

• Highly responsive consultants with flexibility to adapt service provisionbased on client and legislative requirements

• Low levels of staff churn with high retention rates

Referenceability

• Established for +40 years in recruitment, +30 years in IT solutions and+20 years in development, underwritten by Investors in People and BSIstandards

• Quality of service demonstrated by testimonials from clients,candidates and delegates with high levels of repeat buying and loyalty

Strengths

• Parity Consultancy Services

• Solutions offering becomes core of PCS and sees 57% increase in contracted business at the start of 2016 vs start of 2015

• Business Intelligence capability improving, including award of MCOCS programme for MoD (over £2m value)

• 22% increase in delivery days in H2 vs H1

• Inition offering – improving margins on experiential sales

95

100

105

110

115

120

125

130

1 13 25 37 49

Weekly NFI Index

Parity Professionals

• Contractor numbers up 16% in year

• Gross Profit on new sales up 29% on 2014

• 30% improvement in new clients opened vs 2014

• All key performance indicators positive at period end - Much improved pipeline

Highlights

Increasing specialism• Building skills verticals in high demand markets• Technology partnerships • Consultancy proposition led by Industry experts• Appropriate fee rates and margins for expertise

Leverage opportunity• Joint bids, up-sell and cross-sell for additional sales• Continue to develop our brand, core markets and our solutions• Build mainland GB for talent management • Client flexibility combining niche services into an integrated

solution building stronger client relationships

Increase scale• Self-funded growth in sales staff and supporting marketing/bids

teams• Rapidly scalable managed teams with support of resourcing service

and assurance of Consultancy methodologies• Maintain improvement in utilisation• Confidence in bidding and delivering larger projects

Strategy for Growth

End MarketMacro

• Flexible service offerings to suit client requirements and budget

• Increased demand for near-shore or on-shore services delivery

Economic resilience

despite some uncertainty

• Increased assurance and value-add over high volume recruitment

• Increased demand for vertical skills / market expertise for niche roles

Blended service

provision

Technology advances

• Growing demand for skills in high growth areas: digital marketing, big data and analysis, information security

Flexible delivery

• Multiple channels to support client needs

• Rapidly scalable with low bench cost

Workforce dynamics

• Workers are increasingly mobile and demand flexibility

• Intelligent workers demanding more from their IT

Demand for flexible

solutions

• Technology and social networking solutions to volume recruitment

• Clients seeking support in elements of in-house process

– Capability to align to client needs

Sector expertise

• Building aligned specialisms in both Parity Professionals and Parity Consultancy Services

• Agility to follow changing market trends – with flexible delivery models

Market Opportunity

Sales

• Building sales culture and capacity

• Joint bidding activity and delivery - leveraging positive results

• Customer base expanding and sales values improving

Strategy

• Digital acquisition initiative terminated with cost saving programme completed

• Align the sales models to create sector synergies

• Now two complementary businesses with stable, profitable offerings at the core

• Develop the consultancy services offering

Confidence

• Whilst economic uncertainty increased during early 2016, momentum from H2 2015 has carried forward giving confidence in 2016

Outlook and Summary