Contract assets review
As part of its year-end close process, Capita has undertaken a
comprehensive review across its major contracts. Following this
review management has taken the decision to impair, at year end
2016, a number of historic assets relating to a few specific
contracts, which were being amortised over their contract life.
This treatment is consistent with how contracts have been accounted
for in 2016.
These impairments will have no adverse impact on cash or future
trading.
Some of these assets date back to 2009, with the majority
relating to the period between 2012 and 2014. Assets amounting to
around £50m will be written off as a non-underlying charge
consistent with prior year treatment. Accrued income of
around £40m will be written down as a charge to underlying results,
consistent with prior year treatment.
Excluding the impact of accrued income written down, our
guidance regarding trading performance for 2016 remains as last
stated on 8 December 2016.
Capita will announce its full year results on 2 March 2017.
Ends.
For further information:
Capita plc
Tel: 020 7799 1525
Andy Parker, Chief Executive
Officer
Shona Nichols, Executive Director,
Communications
Andrew Ripper, Head of Investor
Relations
Media enquiries
Capita Press office
020 76542399
Powerscourt
Peter Ogden
020 75490997