FINANCIALS: Capita sees fall in revenues
Business outsourcing provider Capita has seen revenues drop 3% year-on-year, according to results for the half-year to 30 June 2017.
The results, released this morning, reveal the group posted revenues of £2,066m, down from £2,131m in the same period last year.
However, operating profit jumped from £166m to £228m, along with profit before tax from £134m to £195m in a period in which the group completed the sale of its specialist recruitment businesses, including Monarch Education, CER, Quality Teachers, 4FRONT, Team24 and Medicare First.
The group added it expects to complete the sale of its asset services businesses for £888m to Australian financial services firm Link Group in Q4 2017.
The period also saw the group post £403m of major contract wins and cut net debt to £1,596m from £1,901m as it embarked on cost initiatives that it expects will achieve £57m in savings by the end of 2018.
Interim CEO Nick Greatorex said: “In the first half of 2017, we made good progress on executing the plans laid out at the end of last year to reposition the group: we announced the sale of our asset services businesses, completed the disposal of our specialist recruitment business and commenced a number of cost initiatives. We remain confident that these actions are making Capita a simpler business, well positioned for the future under new leadership.”
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