Business
Trading Update
Trading Update.
About this update from Capita Plc
[{"type":"text","content":"\n \n This announcement contains inside information\n Capita plc\n 10 November 2020\n Capita plc (“Capita”) today updates on trading and the process to dispose of Education Software Solutions (‘ESS’); and provides an outlook for the remainder of the year.\n Trading in the third quarter was in line with our expectations at the time of the half-year results.\n \n \n \n Management accounts for 3 months ending1:\n \n \n 30 September 2020\n \n £m\n \n \n 30 September 2019\n \n £m\n \n \n \n Reported revenue\n 803\n 902\n \n \n Reported operating profit\n 36\n 12\n \n \n Adjusted2 revenue\n 794\n 878\n \n \n Adjusted2 EBITDA\n 115\n 111\n \n \n Adjusted2 operating profit\n 66\n 66\n \n \n The greater part of Capita’s revenues have remained resilient, with the vast majority of our colleagues able to deliver services for our clients. The year-on-year revenue reduction has been driven by both the impact of COVID-19, largely in our transactional businesses – such as travel and training - and contract losses announced in 2019. The revenue reduction this quarter has been mitigated through the cost actions we have taken over the last 12 months.\n Capita continues to proceed with the disposal of its Education Software Solutions business, and discussions are ongoing. We remain committed to ensuring the best outcome for our shareholders and wider stakeholders. \n Our markets continue to experience a high level of uncertainty primarily as a consequence of the ongoing and unknown future impact of COVID-19. As previously stated this level of uncertainty makes any forecasting challenging. However, trading has remained in line with our expectations, and we continue to expect to comply with our debt covenants at 31 December 2020.\n Jon Lewis, Chief Executive Officer, said:\n “Our focus on our colleagues’ wellbeing and client service delivery has helped us deliver a resilient performance across most of our operations. Despite the ongoing challenges caused by COVID-19, Capita has continued to trade in line with our expectations.\n “We continue to make progress to strengthen the balance sheet with the disposal of non-core assets, including the proposed sale of our education software business.\n “We remain focused on building towards a more focused, sustainable Capita for the long term.”\n \n 1These figures are from Capita’s management accoun...