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BRIEF-Capita says trading in line, hunt for new CEO continues
September 21, 2017 / 6:11 AM / a month ago

BRIEF-Capita says trading in line, hunt for new CEO continues

Sept 21 (Reuters) - Capita Plc

* Cost initiatives on track to realise around £57m savings by end of 2018

* 2017 h1 financial summary: trading broadly in line with expectations

* Underlying revenue declined by 3%. Growth on a like for like basis(1) was 1% including 0.5% organic decline

* Underlying profit before tax(1) up 46% to £195m (h1 2016: £134m)

* Underlying revenue declined by 3%.

* Underlying profit before tax(1) up 46% to £195m

* Underlying pre-tax profits before significant new contracts and restructuring to rise modestly in second half

* Maintained interim dividend of 11.1p (h1 2016: 11.1p)

* Leverage at end of 2017 around bottom of our 2.0 to 2.5 times range

* Net debt at end june 2017 of £1,596m (h1 2016 £1,901m)

* Remain confident that actions we commenced last year are making capita a simpler business

* Major contract win rate 1 in 2 (2016: 1 in 3)

* Bid pipeline £3.1bn (march 2017: £3.8bn), with a weighted average contract length of 5.5 years (march 2017: 7 years). Annual value of bids maintained.

* Underlying pre-tax profits before significant new contracts and restructuring to rise modestly in second half, compared to first half of 2017

* We remain confident that actions we commenced last year are making capita a simpler business, well positioned for future

* Board is pleased with progress in our search process for a new ceo

* Some of our trading businesses which are not improving as quickly as expected

* Expect leverage to fall to around bottom of our 2.0 to 2.5 times range at end of 2017. Source text for Eikon: Further company coverage: (London newsroom)

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