Capita share price Group posts results for ‘a challenging year’

on Mar 2, 2017
Updated: Oct 21, 2019
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Capita (LON:CPI) has updated investors on its full-year performance.

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**Highlights from the company’s statement:**
2016 financial summary: a challenging year
• Underlying revenue growth on a like-for-like basis1 of 3.4%, including 0.1% organic growth
• Underlying cash flow from operations1 £750m (2015: £686m), a cash conversion ratio of 139% (2015:
108%)
Andy Parker, Chief Executive of Capita plc, commented:
“2016 was a challenging year and Capita delivered a disappointing performance. We are determined to turn this performance around. We have taken quick and decisive action to reduce our cost base, increase management accountability, simplify the business, strengthen the balance sheet, and return the Group to profitable growth.

“We remain very confident that our target markets continue to offer long-term structural growth. Capita is well placed in these markets with our unique set of complementary capabilities and the talent of our people. The bid pipeline of major contract opportunities remains active, and we are also seeing success in providing additional new, high value, replicable services to clients.
“The proposed sale of our Asset Services businesses and Specialist Recruitment businesses are on track. We have received good interest and, following regulatory approvals where required, we remain confident in concluding these transactions this year, which will leave us with a more focussed Group and significantly strengthen our balance sheet.
“We expect 2017 to be a transitional year for the business, as we complete our disposals, bed down the structural changes inside the business, and re-position Capita for a return to growth in 2018.”
As of 07:27 GMT, Thursday, 02 March, Capita PLC share price is 1,037.50p.

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