Capita shares surge as group returns to adjusted profit
Capita shares surge as group returns to profit on the back of bumper contract wins and strong order book
- Capita posted a full-year adjusted pre-tax profit of £73.8m today
- The London-listed group outsourcing group saw its shares rise over 17%
Capita shares jumped today after the group revealed it returned to an adjusted profit in 2022, driven by contract wins and an improved order book.
The outsourcing and professional services firm posted a full-year adjusted pre-tax profit of £73.8million, against a pre-tax loss of £122.8million a year earlier.
The company’s adjusted revenues ticked up from £2.78billion in 2021 to £2.84billion last year.
Share surge: Capita shares jumped today after the group revealed it returned to an adjusted profit in 2022
The London-listed group said it had won £2.85billion worth of contracts in 2022, down from £3.42billion in 2021, while its order book stood at £5.8billion as of 31 December.
Capita shares surged over 17 per cent to around 34.30p this afternoon, having risen over 30 per cent in the last year.
The Capita Public Service arm grew by 2.5 per cent, while Capita Experience grew by 0.9 per cent over the period.
The group’s net debt fell to £85million as a result of the company’s disposal program. It received £485million from disposals in 2022, bringing total proceeds to date to over £1.3billion.
Jon Lewis, the group’s boss, said: ‘This was an important year for Capita in which we demonstrated the financial benefits of our strategy to focus on the two core markets we serve best.
‘Revenue growth accelerated, we improved profitability and generated positive free cash flow; and our successful disposals programme has meant we have significantly strengthened the balance sheet.
‘Amid a challenging macroeconomic environment, we believe we have a resilient business.
‘We expect to continue to deliver improving financial performance, while providing excellent operational performance for our clients.’
Since arriving in 2017, Mr Lewis has sold off large chunks of the business and strived to position Capita as a high-tech firm. A geologist by training, he spent two decades at US oil services behemoth Halliburton.
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