21 May 2024
AGM
Trading update for the 4 months to 30 April
2024
Capita
plc (“Capita”)
Trading
in line with expectations for 2024
Summary:
-
The
Group’s adjusted revenue1
was 9%
lower in the four months ended 30 April
2024, compared with the same period in 2023, in line with
expectations
-
Outlook
for Group full year 2024 financial performance unchanged with a
revenue decline expected in H1, as previously guided
-
Contract
win rate of 77% (2023: 80%) across all opportunities; Total
Contract Value won decreased 9% in the four months to 30 April 2024 reflecting expected award
phasing
-
Good
progress with technology hyperscale partners as we co-develop
delivery solutions which are more efficient and provide better
customer service
-
Future
strategic priorities to be outlined at Capital Markets Event on
13 June 2024
Financial
Performance:
Capita
Public Service adjusted revenue1
reduced
5%, in the four months to 30 April
2024, reflecting previously announced losses in Local Public
Service, and reduced contract activity in the first four months of
the year in Defence and Education.
Capita
Experience adjusted revenue1
reduced
16% reflecting the one-off deferred income benefit in 2023 arising
from the award of a new contract with Virgin Media O2, previously
announced contract losses within the Financial Services vertical
including the Co-operative Bank and lower volumes in the UK
business.
The
Group’s contract win rate remains robust and similar to that seen
in the same period in 2023 at 77% (2023: 80%). Total Contract Value
(TCV) won has decreased 9% in the four months to 30 April 2024 reflecting the timing of expected
contract awards across 2024.
As
previously announced, Capita Experience has had some significant
wins in the period with the renewal of contracts with two major
European telecoms providers, one with an expanded scope, with a TCV
of more than £250m. Elsewhere there has been success in Capita
Public Service, particularly within the Defence, Learning, Fire and
Security vertical. We continue to build our contract pipeline for
2024 and 2025 and this will be an area of focus through the rest of
the year.
We
continue to deliver well operationally for our clients, with KPI
performance this year of 95% in Capita Public Service, and 94% in
Capita Experience (89% including the Pensions Administration
business). We have improved our delivery offering within Capita
Experience with new office openings in South Africa and Bulgaria which will further improve our
multi-lingual capabilities and the quality of our customer service
going forwards. In Capita Public Service, our consistently strong
delivery has led to further growth on major contracts within the
Defence sector.
For the
full year 2024, we continue to expect the Group’s adjusted
revenue1
to be
broadly in line with 2023. Capita Public Service is expected to
show full year revenue growth, driven by a number of contracts won
in 2023, including Functional Assessment Services, moving into
their operational phase later in the year. Capita Experience is
expected to show a full year revenue decline, principally
reflecting the one-offs in 2023 coupled with the losses and volume
reductions noted above.
We remain
on track to deliver cost savings as announced within the full year
2023 results, further information will be provided at the Group’s
Capital Markets Event in June.
Adolfo Hernandez, Chief Executive Officer,
said: “Our
financial performance in the first four months of the year has been
in line with our expectations and we remain on track to deliver our
full year financial guidance as outlined at the start of this
year.
We are
committed to improving the financial performance of Capita. Key
strategic priorities include reducing costs and using technology
more effectively both within Capita and for our customers. Our cost
reduction programmes are on track and we are making great strides
with our best in class hyperscale technology partners, such as
ServiceNow to co-develop solutions which will drive efficiency and
a better service for our clients.
I look
forward to providing you with details on these and our other
strategic priorities on 13 June.”
Notes:
1. Adjusted revenue = revenue on a like-for-like
basis.
Other
information:
As
announced on 13 May 2024, following
the announcement of the appointment of Pablo Andres as CFO designate, who will join
Capita on 15 July 2024, Pablo
purchased 650,000 shares across two tranches on 9 May 2024 and 10 May
2024 at a price of 13.8682
pence and 13.5563 pence per
share respectively.
Capita
will hold a Capital Markets Event on 13 June
2024 and will announce its 2024 interim results on
2 August 2024.
For
more information, please contact:
Investor
enquiries
Helen Parris, Director of Investor Relations
Tel: 07720
169 269
Email:
IRteam@capita.co.uk
Stephanie Little, Deputy Head of Investor
Relations
Tel: 07541
622 838
Email:
IRteam@capita.co.uk
Media
enquiries
Capita
external communications
Tel: 0207
654 2399
Email:
media@capita.co.uk
About
Capita
Capita
is a leading provider of business process services, driven by data,
technology and people. Every day
our 43,000 colleagues help millions of people, by delivering
innovative, digitally enabled solutions to transform and simplify
the connections between government and citizens, businesses and
customers. We partner with our clients and provide the insight and
technologies that give time back, allowing them to focus on what
they do best and making people’s lives easier and simpler. We
operate across two divisions – Capita Public Service and Capita
Experience – in the UK, Europe,
India and South Africa. Capita is quoted on the London
Stock Exchange (CPI.L). Further information can be found at:
http://www.capita.com