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

February 08 2018
February 07 2018
February 01 2018
January 23 2018
January 16 2018

Related Articles

drilling rigs
February 08 2018
As mining exploration continues to recover from its lulls of a few years ago, Capital Drilling is starting to find its services more and more in demand
picture of drugs
July 03 2017
Frontier trades its commercial expertise for stakes in the university spin outs and has a core portfolio is six firms.
call centre
November 09 2017
The company has been granted two patents for the technology underlying its secure payments platform, CallGuard

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

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