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Troubled Capita confident of outlook, still no CEO

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Troubled Capita confident of outlook, still no CEO

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LONDON (Reuters) – Troubled British outsourcer Capita, hit by a Brexit-induced slowdown, said on Thursday its first half underlying revenue declined by 3 percent but its overhaul was on track along with its hunt for a new chief executive. Capita, which provides IT-led services so that companies can cut costs but has become a more and more complex, said it remained “confident that actions we commenced last year are making Capita a simpler business well-positioned for the future.” Underlying revenue fell by 3 percent to 2.07 billion pounds, but its major contract win rate was one in two, up from one in three in 2016. Underlying pretax profit rose 46 percent to 195 million pounds. Pretax profit before significant new contracts and restructuring was expected to rise modestly in the second half, compared to the first half of 2017, it said. The group has said it does not expect to grow again until 2018. Capita’s problems are reflected in its peer group as business services face slower growth as clients become more demanding on budgets and more reluctant to shell out.

(Reporting by Elisabeth O’Leary, Editing by Paul Sandle)
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