Capita PLC Trading Update

 
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: [phone] 
Email: [e-mail] 
 
Media enquiries 
Capita external communications 
Tel: [phone] 
Email: [e-mail] 
 
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 
 
 
 
END 
 

(END) Dow Jones Newswires

November 10, 2020 02:00 ET (07:00 GMT)