The company said that due to “its small scale and lack of synergy with the group’s strategy” the subsidiary, which delivers virtual and augmented reality technology was “no longer considered part of its core business”.

Parity Group CEO Alan Rommel says: “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 cashflow and profitability, allowing us to make strategic investment decisions which drive shareholder value.”

Following the disposal, Parity Group will benefit from the reduction in the cash cost of funding Inition's operating losses, which totalled £712k in 2017, as well as net cash proceeds of £200k in cash and another £196k payable within the next six months, which will reduce indebtedness.

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