Capita YTD adjusted revenues fall

Professional services company Capita said on Tuesday that adjusted revenues had fallen in the four months ended 31 April as a result of local public service losses and reduced contract activity in defence and education.

Capita said on Tuesday that adjusted revenue was 9% lower over the four-month stretch, as public service adjusted revenue1 reduced by 5% and experience adjusted revenues fell 16% year-on-year.

The London-listed group's contract win rate was said to have remained "robust" and similar to that seen in the same period in 2023 at 77%, down from 80%, while total contract value won decreased by 9%, reflecting the timing of expected contract awards across 2024.

Looking ahead, Capita expects adjusted revenue to be broadly in line with 2023, with its public service division expected to show full-year revenue growth, driven by a number of contracts won in 2023, while its experience arm was expected to deliver a full-year revenue decline, principally reflecting one-offs in 2023 coupled with losses and volume reductions.

Chief executive Adolfo Hernandez 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."

As of 1120 BST, Capita shares were down 2.86% at 14.63p.

Reporting by Iain Gilbert at Sharecast.com