Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Capita drops as first half underlying revenue declines although profits rise, restructuring on track

The FTSE 250-listed firm said its underlying pre-tax profit jumped by 46% to £195mln, while underlying revenue fell by 3% to £2.07bn as its major contract win rate was one in two, up from one in three in 2016
Outsourcing sign
Capita added that pre-tax profit before significant new contracts and restructuring was expected to rise modestly in the second half

Capita PLC (LON:CPI) saw its shares drop 10% today after the under-pressure outsourcing group saw its first half underlying revenue decline, although profits rise and it said its restructuring is on track along with its hunt for a new chief executive.

In early morning trading, Capita shares topped the FTSE 250 fallers list, down 10.5%, or 68p to 576p.

READ: Capita up after £888mln price for disposal of asset services business "better than expectations"

Reporting half year results for the 6 months to 30 June 2017, Capita said its underlying revenue fell by 3% to £2.07bn, while its underlying pre-tax profit jumped by 46% to £195mln and its major contract win rate was one in two, up from one in three in 2016.

Capita - which has been hit by a Brexit-induced slowdown -  added that pre-tax profit before significant new contracts and restructuring was expected to rise modestly in the second half, compared to the first half of 2017.

READ: HSBC provides pointers for any new Capita CEO as they upgrade their rating for the outsourcer to 'buy'

Nick Greatorex, Capita’s interim CEO, commented: “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.”

He added: “We remain confident that these actions are making Capita a simpler business, well positioned for the future under new leadership."

The group is paying an unchanged interim dividend of 11.1p.

 -- Adds share price --

View full CPI profile View Profile

Capita Group Timeline

Related Articles

Security camera
August 15 2017
Shares in Newmark Security PLC have risen by around 4% over the past month helped by news last week that the group had sold off and leased back its business premises in Poole
stobart air plane at london southend airport
September 05 2017
Warwick Brady is targeting 5mln passengers a year at its London Southend Airport and the delivery of 3mln tonnes of biomass annually by 2022
Interviewees
August 22 2017
The specialist staffing group reported a record set of interim results as net fee income grew for the sixteenth consecutive quarter

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use