Business
Annual Financial Report
Annual Financial Report.
About this update from Capita Plc
[{"type":"text","content":"\n \n Capita plc\n Full Year Results 2019\n Summary\n We have made good progress with the transformation\n • Creating a purpose-led organisation to drive long-term sustainable success\n • Significant progress in fixing legacy issues and reducing ‘cost of poor quality’\n • Rebuilding trust with our colleagues and clients\n • More investment needed than initially thought\n Positioning ourselves for growth\n • Focusing investment on software products and in-demand transformation capabilities\n • Launch of Capita Consulting to drive origination, pipeline and pull-through revenue\n 2019 results\n • Revenue decline reducing: revenue growth in H2 in four out of six divisions, order intake of £2.2bn in 2019\n • Profit before tax of £275m: underpinned by strong cost-saving programme and one-offs\n • Cash generation impacted by investment in delivering operational improvements\n 2020 outlook updated\n • Generating modest organic growth and sustainable free cash flow1 of at least £160m - both in line with current market expectations2\n • Exploring non-core disposals to further simplify the portfolio and recycle capital\n Confidence in long term unchanged\n • Continue to build a more focused, sustainable business for the long term with growing free cash flow\n Jon Lewis, Chief Executive Officer, said:\n “Over the past two years, we have made significant progress with our multi-year transformation at Capita to create the foundations for long-term, sustainable success.\n “We have continued to simplify and strengthen the business, fix legacy issues, rebuild trust with clients, take out cost, reduce risk, and invest in our growth capability.\n “Transforming an organisation of Capita’s size is a complex challenge; there remains more to do and it is requiring more investment than we had expected in 2018.\n “But our plan is the right one and remains unchanged. I am confident that, with the work done to date and investment made in 2019, we can deliver organic revenue growth for the first time in five years in 2020.”\n \n \n \n Year ended 31 December 2019\n \n \n \n \n Financial highlights - continuing operations\n \n \n Reported 2019\n \n Reported 2018\n \n Adjusted1 2019\n \n Adjusted1 2018\n \n Adjusted1\n \n YOY change\n \n \n \n \n Revenue\n \n \n £3,678.6m\n \n £3,918.4m\n \n £3,647.4m\n \n £3,814.7m\n (4%)\n \n \n \n Operating...