RE: Inflation17 May 2022 00:06
As a contracting business we are used to dealing with inflation and two thirds of our client contracts include terms that allow us to pass on inflationary costs. Taking into account transactional revenue (c.12% of our group revenue, 66% of which will be disposed through the Portfolio division), as well as contracts that will end or be renegotiated in the next 18 months, the unhedged exposure to inflation remains relatively small.
As a result, we are confident that the profit impact of inflation can be mitigated over time, with no material impact to profit expected in 2022.
Longer term, we see employee wage pressures at our clients as a potential driver for further outsourcing and use of digital technology.
Taken from the FY results, probably why this has held up quite well recently.