10th Nov 2020 09:48
(Alliance News) -Â Capita PLC on Tuesday said trading has been in line with expectations and the outsourcer expects to comply with its debt covenants.
Shares in Capita were up 13% at 29.29 pence in London early Tuesday.
For the first quarter, revenue fell 11% to GBP803 million from GBP902 million, though operating profit tripled to GBP36 million from GBP12 million.
Capita said the "greater part" of its revenue has remained resilient, with the year-on-year fall driven by the impact of Covid-19, largely in its transactional businesses - such as travel and training - and contract losses announced in 2019.
The revenue reduction in the quarter has been mitigated through cost actions taken over the last twelve months, the firm added.
On the Education Software Solutions business, Capita said it continues to proceed with the unit's disposal and talks are ongoing.
"Our markets continue to experience a high level of uncertainty primarily as a consequence of the ongoing and unknown future impact of Covid-19. As previously stated this level of uncertainty makes any forecasting challenging. However, trading has remained in line with our expectations, and we continue to expect to comply with our debt covenants at 31 December 2020," said Capita.
By Lucy Heming;Â [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Capita