Final Results 2018

About this update from Capita Plc

[{"type":"text","content":"\n \nCapita plc\n\nFull Year Results 2018\n\nSummary\n\n First year of multi-year transformation executed as planned in 2018:\n\n• Corporate purpose and strategy defined\n\n• First-ever operating model rolled out\n\n• Leadership strengthened and governance improved\n\n• Balance sheet strengthened; £1.1bn raised through rights issue and disposals\n\n• £282m profit before tax1, slightly ahead of our guidance\n\n• Real progress on ‘challenging’ contracts\n\n• Rebuilt relationships and partnerships with clients\n\n• £1.8bn order intake\n\n• £140m invested in infrastructure, products and systems\n\n• Hit target of £70m in-year savings from cost competitiveness\n\n• Pension deficit reduction plan agreed.\n\nClear plan for 2019:\n\n• Accelerating cost competitiveness to realise cumulative savings of £175m by end 2019\n\n• Increasing investment - in our people, systems and digital capability - to support long-term, sustainable growth\n\n• Profit before tax1 expected to be between £265m and £295m in 2019\n\n• Transformation of sales as part of new growth function.\n\n On track for 2020 targets:\n\n• Achieve double-digit margins1\n\n• At least £200m of sustainable free cash flow2.\n\nJon Lewis, Chief Executive Officer, said:\n\n“We’ve successfully completed year one of our multi-year transformation, fixed the basics and are firmly on track. We’ve strengthened our balance sheet, achieved cost savings, and invested in our people. On top of that, we’ve improved our governance, introduced a ‘One Capita’ operating model, and started turning around challenging contracts. I am particularly proud of our new corporate purpose and refreshed values.\n\nThe lion’s share of our business is providing digitally-enabled services and software solutions, using a combination of technology, data and insight to help deliver better outcomes for clients. This gives us a strong platform for significant, long-term structural growth.\n\nOur transformation still has some way to go. But I am very pleased with our progress. Our targets remain on track, and I’m excited about the prospects for a simplified and strengthened Capita.”\n\nFinancial outlook\n\nCapita is entering the second year of a major transformation and the successful delivery of this programme is critical to the future performan...

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