Finance News5 Mar 2020 11:18
Capita, down 21%. The outsourcer said it is making "significant" progress in its transformation, though it has warned more spending is required than originally thought. In 2019, Capita said the reduction in revenue is now slowing, with second half revenue rising in four out of its six divisions year-on-year. The order book at the end of 2019 was GBP6.72 billion, down 5.4% on the same date a year prior. Capita's 2019 revenue declined by 6.1% to GBP3.68 billion, compared to a 7.3% yearly decline in 2018. Adjusted revenue, taking into account accounting changes, fell 4% to GBP3.65 billion. Capita swung to a pretax loss of GBP62.6 million in 2019, following a GBP272.6 million pretax profit in 2018. Adjusted, pretax profit fell 2% to GBP275.0 million. The loss came after Capita booked a more than GBP300 million gain on a disposal in 2018. Capita sees "modest organic growth" and sustainable free cash flow of GBP160 million in 2020, a figure it said was disappointing. "We retain concerns over the challenge of sustaining a growth profile as AI and robotic process outsourcing takes hold, with new competition likely continuing to emerge, and potentially undermining Capita's existing outsourcing contract book as contract values fall," said Shore Capital.