8th Mar 2023 11:49
(Alliance News) - Capita PLC on Wednesday said it agreed to sell Security Watchdog for GBP14 million, while on Monday it also agreed to sell its Resourcing, HR Solutions and ThirtyThree businesses for GBP21 million.
On Wednesday, the London-based outsourcing services provider said the sale of Security Watchdog, a pre-and-post-employment screening solutions provider, was to Matrix. Matrix is owned by Bridgepoint Development Capital, which in turn is part of Bridgepoint Group PLC.
Capita said the Security Watchdog senior management team and employees will remain with their business as it transfers to the ownership of Matrix.
"We are pleased to have agreed the sale of our Security Watchdog business to Matrix following a competitive sale process. This was one of a number of Capita businesses which were successful but did not form part of our core growth strategy, and which will benefit from opportunities under new owners," said Capita Chief Executive Officer Jon Lewis.
"The sale marks another step for our successful disposals programme which has enabled us to significantly strengthen the balance sheet and materially reduce our debt. We are targeting for the majority of the remaining businesses within our non-core portfolio division to be sold during the first half of 2023, depending on general market conditions."
On Monday, Capita also exchanged for the sale of its Resourcing, HR Solutions and ThirtyThree businesses to Inspirit Capital.
It said it expects to receive cash proceeds of around GBP17 million, including a deferred payment of around GBP7 million receivable by Capita on November 30 this year.
Capita claimed the disposed businesses are "some of the UK’s leading providers of human capital resourcing services to both the public and private sectors". It also confirmed the senior management teams and employees will remain with their businesses as they transfer to the ownership of Inspirit Capital.
The sale to Inspirit Capital is subject to National Security & Investment Act approval.
On Thursday last week, Capita said annual profit fell steeply while revenue declined.
Pretax profit dropped 79% to GBP61.4 million in 2022 from GBP285.6 million in 2021, while revenue also decreased by 5.3% to GBP3.01 billion from GBP3.18 billion and gain on business fell 60% to GBP166.9 million from GBP419.7 million.
However, Capita claimed the results were its best set in six years, instead pointing to a swing to an adjusted operating profit in 2022 of GBP16.2 million from a GBP100,000 loss in 2021.
It said this reflected adjusted revenue growth of 10% to GBP249.8 million from GBP226.5 million. These figures were adjusted for disposals.
Shares in Capita were down 0.6% to 42.04 pence each in London on Wednesday around midday.
By Greg Rosenvinge, Alliance News reporter
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