Capita sees tech division as 'significant driver' of revenue as half year results revealed

The professional services giant said it is 'pleased' with its financial results in its latest trading update

Capita has said its digital and technology strategy is a "significant driver" of future revenue as it revealed its half year results for 2022.

The professional services giant said it is "pleased" with its financial results in its latest trading update, which shows its adjusted revenue increased by 0.6 per cent to £1,480.1m.

Adjusted profit before tax increased by £35.9m to £37.0m (H1 2021: £1.1m) while net debt reduced by £169.4m to £710.4m (31 December 2021: £879.8m).

It comes as Capita announced its intention to sell a number of "non-core businesses" to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.

Despite selling off six companies so far, Capita says it accelerated revenue growth in the second half of the year which was "supported by a strong pipeline of opportunities".

As for the digital and technology side of the business, the tech giant said "both divisions currently have strong capabilities to support delivery for their clients".

The company is currently transitioning from traditional Business Process Outsourcing (BPO) contracts, where services are mainly delivered by agents supported by technology, to Business Process Services and digital transformation.

"Combining market-leading offerings and standardised technology stacks with our client knowledge and insight will support faster revenue growth and be a driver of medium-term margin opportunity," Capita said.

Jon Lewis, CEO of Capita, said Capita's performance has been "in line with our expectations".

He added: "I am pleased with the progress we have continued to make across Capita so far this year.

"We have increased adjusted revenue, profit and free cash flow; and further reduced debt and strengthened the balance sheet.

"Operationally, we have remained strong, continuing to deliver successfully for our many clients in both the public and private sectors.

"As our reputation for delivery and digital transformation services increases, we have secured a series of important contract wins and renewals, as well as growing the amount of work won with new clients.

"We are well positioned for growth in the second half of the year and beyond; and our full-year commitments remain on track.

"All of this has been achieved against the ongoing backdrop of Covid-19 and increasing economic challenges; and I would like to thank all our colleagues for their continued hard work, commitment and professionalism."