Capita making good progress on strategic initiatives
Source - SMW
Capita is making good progress on executing the strategic initiatives laid out at the end of 2016 to reposition the group and create a simpler business better placed to return to profitable, sustainable growth, shareholders at today's annual general meeting will be told.
The group said it had bedded down its new divisional management and its market-facing organisation structure had now been in place since the beginning of 2017.
It said this has increased transparency and oversight, and created greater renewed focus on sales, consistent operational performance and customer service excellence.
Shareholders will also be told that the board is making good progress in the search to select a new chief executive and the selection process is moving forward with a shortlist of strong candidates.
Looking ahead, an update said: "As previously stated, Capita expects 2017 will be a transitional year for the Group. "We expect that the first half performance of 2017 under IFRS 15, including the impact of higher resourcing costs in PCSE, will be no lower than the second half of 2016, as reported under previous GAAP accounting standards, excluding the write-down of accrued income and potential impact from disposals. "We continue to expect profitability to improve in the second half, reflecting the cumulative benefit from performance improvement initiatives and lower attrition, and our current view that the trading businesses will continue to steadily improve. "We remain confident that the decisive actions we commenced in 2016 will make Capita a simpler business, better positioned to exploit our fundamental strengths and generate renewed sales performance, supporting a clear pathway to return to sustainable profitable growth in 2018 and beyond."