Capita is undergoing a transformation under the leadership of Jonathan Lewis who was brought in as CEO in December 2017. After 3 years of revenue declines the company expected to grow revenues in 2020 and was on track to do so until the end of end of the first quarter in March. Then, of course, Covid came along and all bets were off. The focus moved to staff well-being, client service delivery and cost conservation. Its been a tough year but progress has been made and the ambition is to return to revenue growth in 2021 in combination with improved margins.
There have been some notable contract wins this year and the pipeline and order book look healthy. Underperforming contracts have been fixed or are in the process of being fixed and the new contracts won are in the right areas delivering higher margins.
The business is being simplified with the sale proceeds from non core assets used to strengthen the balance sheet. The company is operating within its banking covenants but additional funds from disposals would provide welcome flexibility to the business.
So, a lot going on in a business which has a rich history of growth and success but which has strayed off course in recent times. Stuart Morgan, Director of Investor Relations, will provide an introduction to the company and update on current performance at a webinar on December 10th at 12pm. Register here:
