LONDON (dpa-AFX) - Capita Plc (CPI.L), a business process outsourcing and professional services provider, Wednesday said its first-half performance has been in line with expectations. The company expects Group revenue growth at the half year of up to 1%. For fiscal 2022, the company said it remains confident of delivering revenue growth.
In its trading update, the company reported further revenue growth, important contract renewals and wins, and ongoing strengthening of the balance sheet.
In the five months to May 31, Public Service division revenue grew 2%, while the Experience division revenues reduced by 3%. Portfolio division revenue grew 5% as businesses recovered from Covid-related impacts.
Looking ahead, the company continues to expect further strong progress in the second half of the year in revenue, profit and cash flow generation.
The company is targeting further cost savings and efficiencies.
Profits in 2022 are expected to be significantly weighted to the second half, with a reduced EBITDA margin.
Further, the company remains on track to deliver positive free cash flow in 2022.
Jon Lewis, Capita Chief Executive Officer said, 'Our operational performance remains strong, with impressive levels of delivery across our client base; and we have secured important contract renewals and new work. Our financial performance has remained in line with our expectations, as we have maintained revenue growth in 2022, while continuing to reduce debt and strengthen the balance sheet.'
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