Capita PLC (LSE:CPI) said revenues have been flat this year and will continue with its cost-cutting programme to offset rising inflationary pressures including higher staff bills.
The outsourcer saw revenues rise by 0.6% to £2.88bn in the eleven months to end November with growth of 12% its public sector earnings offset by sharp drops in private sector work.
Capita Experience revenues fell by 8% as the group lost one big contract.
Recovery from Covid by its businesses generally has also been slower than anticipated, said chief executive Jon Lewis.
“ Covid has continued to impact some businesses within our Portfolio division. This, combined with the anticipated revenue attrition in our Experience division has slowed the overall rate of top-line growth this year,” he said.
Lewis added that disposals by the group now total £620mln this year with net debt at the year-end to be in line with guidance at just shy of £900mln.
Capita added that it will be reviewing the value of some of balance sheet items in the 2021 accounts though any write-downs associated with this would be non-cash items.