Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Outsourcing group Capita said it would target disposal proceeds of £500m this year as it streamlines its business after reported narrower annual losses as the pandemic impact on revenue was offset by cost cuts.
The company will cut its simplifying its business from six divisions to three and it targeting disposal proceeds of £700 million, with £500 million to come in 2021.
'Two core divisions will be focused on the needs of our government and blue-chip customer experience clients, in growing markets where we know we can win. The third will comprise a portfolio of non-core businesses from which we are targeting significant disposal proceeds,' it added.
For the year ended 31 December, pre-tax losses narrowed 21% to £49.4 million year-on-year, while revenue fell 10% to £3.32 billion.
The results, which was in line with the company's expectations set out at the half year, were helped by a combination of £145.2 million of planned cost savings and £122 million of cost and cash preservation.
Adjusted pre-tax profit fell 67% to £65.2 million, reflecting the 'loss of high-margin Covid-impacted transactional revenue and revenue from lost contracts, the company said.
Looking ahead, the company is targeting a return to organic revenue growth this year and achieve sustainable cash generation in 2022.