Business
Final Results
Final Results.
About this update from Capita Plc
[{"type":"text","content":"\n \nFull year results for the year ended 31 December 2016\n\nChallenging year – decisive actions taken to improve performance\n\n\n\nFinancial highlights\nUnderlying1 2016\nUnderlying1 2015\nUnderlyingYOY change\nReported 2016\nReported YOY change\n\n\n\nRevenue\n£4,898m\n£4,674m\n+5%\n£4,909m\n+1%\n\n\n\nOperating profit\n£541.3m\n£639.0m\n(15)%\n£148.3m\n(28)%\n\n\n\nProfit before tax\n£475.3m\n£585.5m\n(19)%\n£74.8m\n(33)%\n\n\n\nEarnings per share\n56.67p\n70.73p\n(20)%\n5.55p\n(30)%\n\n\n\nTotal dividend per share\n31.7p\n31.7p\n—\n31.7p\n—\n\n\n\nHighlights\n\n2016 financial summary: a challenging year\n\n• Underlying revenue growth on a like-for-like basis1 of 3.4%, including 0.1% organic growth\n\n• Underlying cash flow from operations1 £750m (2015: £686m), a cash conversion ratio of 139% (2015:\n\n 108%)\n\n• Free cash flow after non-underlying items1 £409m (2015: £304m)\n\n• Net debt at end December 2016 was £1,779m (2015: £1,839m)\n\n• Underlying profit before tax1 down 19% to £475.3m (2015: £585.5m), including the recently announced\n\n £39.6m write down of accrued income with regard to our 2016 review of contracts\n\n• Reported profit before tax £74.8m (2015: £112.1m)\n\n• Underlying earnings per share1 down 20% to 56.67p (2015: 70.73p)\n\n• Reported earnings per share down 30% to 5.55p (2015: 7.96p)\n\n• Total dividend unchanged at 31.7p (2015: 31.7p).\n\nMajor contracts: existing relationships extended and first strategic partnership in Europe\n\n• £1.3bn of major contract wins and extensions (2015: £1.8bn) including:\n\n? mobilcom-debitel customer services strategic partnership, worth £197m over 7 years\n\n? Extension of our relationship with Department for Work and Pensions Personal Independence Payments (PIP) assessments, worth £210m (based on volume assumptions)\n\n• Major contract win rate 1 in 3\n\n• Bid pipeline £3.8bn (December 2016: £3.8bn), with a weighted average contract length of 7 years (December 2016: 7 years).\n\nDecisive actions position us better to exploit our fundamental strengths and return to growth\n\n• Business review: commenced process to exit the majority of Capita Asset S...