Shares in outsourcer Capita (CPI) slumped 17.9% to 37.1p, extending a miserable run for the shares, as business from private sector clients was sluggish.

Overall revenues rose by 0.6% to £2.9 billion in the 11 months to 30 November 2021. But contract losses at its Capita experience division, handling customer service for private firms, overshadowed growth in its public sector arm.

Capita public service grew by 11% to £1.29 billion, but Capita experience revenues declined by 8% to £1.08 billion, reflecting 'previously announced contract losses mainly as a result of client corporate actions, as well as ongoing revenue attrition in the closed book Life & Pensions segment,' the company said.

SHARES TRADE AT A FRACTION OF 2015 HIGHS

The non-core businesses, held in the Capita portfolio division, had grown revenue by 0.4% to £507 million. For 2021 net debt was expected to be broadly flat versus the half year, as previously guided.

The shares are trading at less 5% of their 2015 highs amid a series of profit warnings and impairments.

Looking ahead, the company added it expected to generate free cash flow in 2022. ‘We have continued to deliver cost savings in the last year of the transformation programme, improving our profitability this year, as well as further efficiencies from our new organisational structure (including the £50 million of savings targeted for 2022), which we expect to continue into the future,’ the company said.

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Issue Date: 13 Dec 2021