Capita reveals boost in revenues from public contracts
The outsourcing giant said it has benefited from winning contracts and extensions to deals with the Royal Navy, HMRC and Ministry of Justice.
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Your support makes all the difference.Outsourcing giant Capital has seen its public sector division boosted by 11% following contract wins and extensions with the Royal Navy HMRC the Standards and Testing Agency and the Ministry of Justice
The company said the division grew 11% to £1.3 billion, although there was a fall in its private sector work following the loss of a major contract earlier this year and a slower recovery due to the pandemic.
In the 11 months to November 30 total revenues rose 0.6% to £2.9 billion, with the money used to pay down debts by a total of £210 million this year.
Capita which also operates London’s Congestion Charge zone, added that its plans for downsizing and selling off parts of the firm remain on track.
A total of £620 million has been banked from selling its Secure Solutions and Specialist Insurance business, alongside its schools and training divisions ESS and Axelos, pushing the company to within touching distance of its £700 million disposals target for the year.
Chief executive Jon Lewis said: “We have continued in recent months to make progress with our corporate transformation, particularly in our Public Service division.
“However, Covid has continued to impact some businesses within our Portfolio division.
“This, combined with the anticipated attrition in our Experience division has slowed the rate of top line growth this year.”
Capita’s Experience division saw the heaviest falls in sales, down 8% to £1.1 billion, although bosses highlighted contract wins with the RSPCA, a major UK bank, a FTSE 100 pensions client and Thames Water.
Its Portfolio division saw revenues up 0.4% to £507 million, which was stunted by slower-than- expected recoveries in Covid-affected business, including its Travel and Events division, Security Services and Legal division.
The company said in London it was successful in overseeing the extension of the Ultra Low Emission Zone (Ulez) which launched at the end of October.