Capita Plc (CPI.L), a business process outsourcing and professional services company, Tuesday reported around 8 percent drop in adjusted revenue in the eleven months ended November 30.
For fiscal 2024, the company continues to expect adjusted operating profit margin up around 50 basis points, largely driven by cost reduction initiatives.
Capita said its Board is increasingly confident in delivering its 6 percent to 8 percent medium-term operating margin target.
Capita further said it expects a broadly flat revenue performance in 2025 as it will continue to exit activities, that are either low margin or where ir has a limited right to win.
In its trading and operating update, the company reported that Capita Public Service adjusted revenue dropped 0.9 percent in the eleven months.
Capita Experience adjusted revenue reduced 16.3 percent, and the Contact Centre business declined 18.5 percent.
Pension Solutions grew 6.7 percent reflecting volume growth across a number of clients, including PIC and Rothesay and the benefit from indexation.
Regulated Services, including closed book Life & Pensions, revenues declined 25.8 percent.
As announced earlier, the company's first priority of the ongoing transformation is improving the operating margin, which in turn will deliver free cash flow and adjusted revenue growth.
The company has increased cost reduction target to up to 250 million pounds from previous view of 160 million pounds.
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