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Capita Sees Weak Revenues In H1; Says Trading For Rest Of Year To Remain Resilient

Capita plc (CPI.L), in its trading update, on Thursday said its first-half revenue is expected to be around 10% lower than 2019, of which 5% relates to COVID-19.

The company was projecting a small decline in trading in the first half due to contract losses reported in 2019.

Software revenue for the half year, including the impact of COVID-19, is expected to be up by around 2 million pounds. People Solutions revenue would be down by around 30 million pounds.

The company also projects weak revenues in Customer Management, Government, Technology Solutions and Specialist Services.

Looking ahead, the company said precise forecasting is challenging in these uncertain times. The company expects trading over the rest of the year to remain resilient, given the client base and the long-term nature of contracts.

Jon Lewis, Chief Executive Officer said, said, "We have implemented cost and cash preservation initiatives to mitigate the financial impact of COVID-19, while liquidity remains strong, and cash generation from operations has improved significantly compared with 2019."

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