*UKHotViewsExtra* Capita’s transformation – a mid-way status check

Capita is now half way through its three-year turnaround plan, to do “fewer things better” and today’s half-year results are a good opportunity to reflect on progress to date.

Firstly, a look at the headline numbers shows both revenue and operating profit continuing to decline – Capita achieved adjusted revenue for the first six months of 2019 of £1.85bn down 6.3% year-on-year (£1.98bn H118) with operating profit of £142.1m down 10.3% (£158.4m H118).

When you look across Capita’s divisions its very clear that it is being pulled back by performance in ‘Specialist Services’ – this is the Division that contains an eclectic mixture of contracts and businesses that don’t easily fit elsewhere within the current structure. Adjusted revenue in Specialist Services shrank YoY by 23.7% to £376.1m (£493.2m H118) whilst adjusted operating profit fell YoY 16.5% to £67.7m (£81.1m H118). Much of this can be attributed to attrition in Capita’s Life & Pensions and Insurance businesses and specifically the ending of large contracts with the Prudential and Marsh in 2018. There were also more modest declines in Real Estate & Infrastructure, Travel & Events and Enforcement businesses. Read More Here……

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Posted by Marc Hardwick at '09:08' - Tagged: results   transformation   Capita