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Annual Results

Capita profits slump after challenging year

02 March 2017 07:22

Capita is taking decisive actions taken to improve performance after a disappointing year in 2016.

Operating profits fell by 15% to £541.3m on an underlying basis and were down 28% to £148.3m on a reported basis.

Underlying pre-tax profits fell 19% to £475.3m and were down 33% on a reported basis at £74.8m.

The total dividend is unchanged at 31.7p (2015: 31.7p).

Chief executive Andy Parker said: "2016 was a challenging year and Capita delivered a disappointing performance.

"We are determined to turn this performance around.

"We have taken quick and decisive action to reduce our cost base, increase management accountability, simplify the business, strengthen the balance sheet, and return the Group to profitable growth.

"We remain very confident that our target markets continue to offer long-term structural growth.

"Capita is well placed in these markets with our unique set of complementary capabilities and the talent of our people.

"The bid pipeline of major contract opportunities remains active, and we are also seeing success in providing additional new, high value, replicable services to clients.

"The proposed sale of our Asset Services businesses and Specialist Recruitment businesses are on track. We have received good interest and, following regulatory approvals where required, we remain confident in concluding these transactions this year, which will leave us with a more focussed Group and significantly strengthen our balance sheet.

"We expect 2017 to be a transitional year for the business, as we complete our disposals, bed down the structural changes inside the business, and re-position Capita for a return to growth in 2018."

Story provided by StockMarketWire.com

Related Company: CPI

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