Does a weakening dollar affect Capita?22 Apr 2025 15:32
Capita plc's revenue is predominantly generated within the United Kingdom, with minimal exposure to the United States. In 2023, the company reported total revenue of £2,814.6 million, of which £2,526.0 million (approximately 90%) was derived from the UK. European operations contributed £282.5 million (10%), while revenue from other regions—including the U.S.—was just £6.1 million, accounting for less than 0.3% of total revenue
lse.co.uk
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Given this limited exposure to the U.S. market, fluctuations in the U.S. dollar are unlikely to have a significant direct impact on Capita's revenue or profitability. However, indirect effects could arise if Capita engages in procurement of technology, software, or services priced in U.S. dollars. In such cases, a weaker dollar could reduce costs, potentially benefiting the company's margins.
Overall, Capita's financial performance and share price are more closely tied to domestic factors within the UK and Europe, such as government contracts, operational efficiency, and strategic initiatives, rather than movements in the U.S. dollar.
Doesn't seem to be an issue. I thought it may explain the extra volatility we've seen.
NB: Sorry to divert away from the d!ck measuring going on.