Capita shares surge as group returns to adjusted profit

Capita shares rose today after the group revealed it returned to an adjusted profit in 2022, driven by contract wins and an improved order book.

The outsourcing and professional services firm posted full-year adjusted pre-tax profit of £73.8 million, up from a pre-tax loss of £122.8 million a year earlier.

The company’s adjusted revenue rose from £2.78 billion in 2021 to £2.84 billion last year.

The London-listed group said it won £2.85 billion in contracts in 2022, up from £3.42 billion in 2021, while its order book stood at £5.8 billion as of December 31.

Capital shares rose more than 17 percent this afternoon to about 34.30 p.m., after rising more than 30 percent in the past year.

The Capita Public Service branch grew 2.5 percent, while Capita Experience grew 0.9 percent in that period.

The group’s net debt fell to £85 million as a result of the company’s divestment programme. It received £485m from divestments in 2022, bringing total proceeds to over £1.3bn to date.

Group boss Jon Lewis said: ‘This has been an important year for Capita as we have demonstrated the financial benefits of our strategy to focus on the two core markets we best serve.

“Sales growth accelerated, we improved profitability and generated positive free cash flow; and thanks to our successful divestment program we have significantly strengthened the balance sheet.

“In the midst of a challenging macroeconomic environment, we believe we have a resilient business.

“We expect to continue to deliver better financial performance while delivering excellent operational performance for our customers.”

Since joining in 2017, Mr. Lewis has sold large parts of the company and has strived to position Capita as a high-tech company. A geologist by training, he spent two decades at US oil services company Halliburton.