6th Aug 2021 09:34
(Alliance News) - Capita PLC on Friday posted a slight first-half revenue fall, but backed itself to post annual growth as virus hit businesses recover.
The London-based outsourcer, with customers in government, defence and healthcare, said revenue in the six months to June 30 slipped 3.8% year-on-year to GBP1.62 billion from GBP1.68 billion. However, adjusted revenue, so not including businesses it has exited, was largely flat at GBP1.58 billion.
Capita swung to a pretax profit of GBP261.1 million from a GBP28.5 million loss a year earlier.
The company posted a GBP240.3 million gain on business disposals, up sharply from GBP42.1 million a year earlier.
In February, Capita sealed the sale of its Education Software Solutions business to Tiger UK Bidco Ltd, established by funds advised by Montagu Private Equity, for GBP298.5 million.
Chief Executive Jon Lewis said: "We have continued to deliver a good operational performance, won significant new business and have a strong pipeline of opportunities to come in the second half."
Capita said the first half went to plan and looking ahead, it expects annual organic revenue growth. This will be "driven by new contracts and recovery in Covid-affected businesses".
Capita shares were 0.9% lower at 35.65 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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