Capita sees small rise in Q3 profit
Capita
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08:49 24/04/24
Outsourcing contractor Capita said third quarter trading was in line with expectations as it delivered a small rise in core profit.
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The company, which collects the BBC licence fee and runs the London congestion charge, on Tuesday said contract losses and Covid-19 hit revenue, which fell to £803m from £902m. Adjusted core earnings rose to £115m from £111m.
“Our markets continue to experience a high level of uncertainty primarily as a consequence of the ongoing and unknown future impact of Covid-19. However, trading has remained in line with our expectations, and we continue to expect to comply with our debt covenants at 31 December 2020,” the company said in a trading statement.
Capita added that it continued to make progress to strengthen the balance sheet with the disposal of non-core assets, including the proposed sale of its education software business ESS.
Capita has issued a string of profit warnings in recent years and last year made a £62m. It has suffered under the pandemic, taking a 10% hit to revenue in the first half of the current financial year.
It recently sold Eclipse, its legal software business, for £56.5m. The disposals are part of a restructure under chief executive Jon Lewis, who took over after predecessor Andy Parker was ousted, to move the company away from low-value, labour-intensive contracts to more lucrative hi-tech work.