Capita PLC (LSE:CPI) said it remains on track to hit medium-term targets as it reported positive trading across both its divisions.
The outsourcing specialist said in the 11 months ended November, it had seen a positive operational performance across the business with adjusted revenue growth of 2.1%.
The company reported contracts won worth £2.89 billion, an increase of 47% from 2022, with a significant improvement in win rate for new contracts and expansions to 70%.
The firm reiterated its new target for cost savings of £60 million for 2024, which underpins a target of more than doubling group operating margin from 2.9% and delivering sustainable positive free cash flow over the medium term.
Capita also highlighted reduced future pension fund contributions under the recently agreed 2023 Triennial review and noted an actuarial pension surplus as at end March 2023 of £51 million.
Jon Lewis, chief executive officer, said: “We have continued to make good progress against our core priorities and remain on track to deliver our medium term guidance of mid-single digit revenue growth, doubling our operating margin and delivering positive free cash flow.”
“Capita is a growing business with a materially stronger balance sheet, reflecting the reductions in financial debt and pension deficit.”