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Business process outsourcing services company Capita swung to a profit in the first half of the year, driven by new business wins and efforts to cut costs.
For the six months ended 30 June 2021, pre-tax profit was £261.1 million compared with a loss of £28.5 million last year as revenue slipped to £1.62 billion from £1.68 billion last year.
The swing to profit, principally reflected 'transformation cost savings of £78.5m, new revenue (£10.9m) and the unwind of £22.7m of prior year holiday accrual impact, more than offsetting revenue losses and the reinstatement of the employee bonus scheme, the company said.
Total contract value won in the half was £2,576 million, an increase of 70% on prior year.
Looking ahead, the company said it expect full year revenue growth in 2021, driven by new contracts and recovery in Covid-affected businesses.