Capita PLC Trading Update
November 10 2020 - 1:00AM
UK Regulatory
TIDMCPI
This announcement contains inside information
Capita plc
10 November 2020
Capita plc ("Capita") today updates on trading and the process to dispose of
Education Software Solutions ('ESS'); and provides an outlook for the remainder
of the year.
Trading in the third quarter was in line with our expectations at the time of
the half-year results.
Management accounts for 3 30 September 2020 30 September 2019
months ending1: GBPm GBPm
Reported revenue 803 902
Reported operating profit 36 12
Adjusted2 revenue 794 878
Adjusted2 EBITDA 115 111
Adjusted2 operating 66 66
profit
The greater part of Capita's revenues have remained resilient, with the vast
majority of our colleagues able to deliver services for our clients. The
year-on-year revenue reduction has been driven by both the impact of COVID-19,
largely in our transactional businesses - such as travel and training - and
contract losses announced in 2019. The revenue reduction this quarter has been
mitigated through the cost actions we have taken over the last 12 months.
Capita continues to proceed with the disposal of its Education Software
Solutions business, and discussions are ongoing. We remain committed to
ensuring the best outcome for our shareholders and wider stakeholders.
Our markets continue to experience a high level of uncertainty primarily as a
consequence of the ongoing and unknown future impact of COVID-19. As previously
stated this level of uncertainty makes any forecasting challenging. However,
trading has remained in line with our expectations, and we continue to expect
to comply with our debt covenants at 31 December 2020.
Jon Lewis, Chief Executive Officer, said:
"Our focus on our colleagues' wellbeing and client service delivery has helped
us deliver a resilient performance across most of our operations. Despite the
ongoing challenges caused by COVID-19, Capita has continued to trade in line
with our expectations.
"We continue to make progress to strengthen the balance sheet with the disposal
of non-core assets, including the proposed sale of our education software
business.
"We remain focused on building towards a more focused, sustainable Capita for
the long term."
1These figures are from Capita's management accounts and are subject to further
review and change. This financial information is subject to Capita's additional
financial review procedures, including additional review by Capita's management
team and audit by Capita's external auditors. As a result, Capita's actual
results could vary from the figures for the three months ended 30 September
2020 and these differences could be material.
2Capita presents various alternative performance measures as the Directors
believe these are useful for the financial statements in helping to provide a
balanced view of, and relevant information, on Capita's financial performance.
Adjusted numbers exclude business exits; restructuring items and other specific
items as described in our annual report.
Investor enquiries
Stuart Morgan
Tel: 07989 665484
Email: IRteam@capita.co.uk
Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk
LEI number: CMIGEWPLHL4M7ZV0IZ88
About Capita
Capita is a consulting, transformation and digital services business. Every day
our 61,000 colleagues help millions of people, by delivering innovative
solutions to transform and simplify the connections between businesses and
customers, governments and citizens. We partner with clients and provide the
insight and cutting-edge technologies that give time back, allowing them to
focus on what they do best and making people's lives easier and simpler. We
operate in the UK, Europe, India and South Africa - and across six divisions:
Customer Management; Government Services; People Solutions; Software;
Specialist Services; and Technology Solutions.
Capita is quoted on the London Stock Exchange (CPI.L).
Further information can be found at: http://www.capita.com
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