Capita Group Swings To Profit For Full Year

Capita Group Plc (CPI.L), a business process outsourcing and professional services provider, on Thursday posted a turnaround to profit for the fiscal 2021, amidst a benefit of cost savings, offsetting contract losses and general cost increases.

For the fiscal 2021, the London-headquartered firm posted a pre-tax profit of 285.6 million pounds, compared with a loss of 49.4 million pounds, reported for the fiscal 2020. In addition, the company’s adjusted pre-tax profit was registered at 93.5 million pounds as against 5.4 million pounds.

The company posted its earnings per share (EPS) for the year at 13.33 pence, compared with loss per share of 0.41 pence last year, whereas adjusted EPS fell to 1.61 pence, compared with 2.41 pence per share a year ago.

The British firm recorded an increase in its operating loss at 86.6 million pounds, compared with 32 million pounds, on year-on-year basis.

For the 12-month period, Capita’s EBITDA moved down to 222.3 million pounds, versus 225.6 million pounds, reported a year ago.

During 2021, the outsourcing company took action to cut operating and administrative costs by a further 123 million pounds and, over the transformation, the total amount of cost savings was over 425 million pounds.

Capita generated a total revenue of 3.18 billion pounds for the fiscal 2021, down from 3.32 billion pounds reported for the previous year.

Looking ahead, for the fiscal 2022, profit margins of the Group are expected to reduce slightly.

For the period beyond 2022, the company targets its revenue growth at least in line with the mid-single digit range of its core markets and focuses to deliver high single digit Group EBITDA margins.

Source: Read Full Article