Paul Davies is to return to business and IT solutions firm Parity as chief executive, according to an interim management statement.

Davies, who was chief executive of Parity from its creation in 1994 until 1999, will join the board as chief executive on 1 June. He was most recently a non-executive director of Microgen and chairman of MSB International between 2002 and its sale in 2006.

Alwyn Welch steps down from his role as chief executive and leaves Parity at the end of the month. 

Philip Swinstead will join the board on 1 June as chairman, while Lord Freeman will become non-executive deputy chairman.

Former executive chairman John Hughes has asked to step down as non-executive deputy chairman and as a director on 31 May.

The statement adds that trading during the first half of 2010 has remained largely consistent with management expectations, while Parity continues to experience volatile market conditions, creating poor short-term visibility of revenues.

“The phasing of profit is expected to be similar to last year’s, with trading below breakeven in the first half and with an improvement in the second half,” says the statement.

“Net debt has continued to reduce substantially throughout 2010 as trade debtors have been reduced to more normal levels.”