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Capita plc - Trading Update

This announcement contains inside information

Capita plc

10 November 2020

Capita plc (“Capita”) today updates on trading and the process to dispose of Education Software Solutions (‘ESS’); and provides an outlook for the remainder of the year.

Trading in the third quarter was in line with our expectations at the time of the half-year results.

The greater part of Capita’s revenues have remained resilient, with the vast majority of our colleagues able to deliver services for our clients.  The year-on-year revenue reduction has been driven by both the impact of COVID-19, largely in our transactional businesses – such as travel and training - and contract losses announced in 2019. The revenue reduction this quarter has been mitigated through the cost actions we have taken over the last 12 months.

Capita continues to proceed with the disposal of its Education Software Solutions business, and discussions are ongoing. We remain committed to ensuring the best outcome for our shareholders and wider stakeholders.  

Our markets continue to experience a high level of uncertainty primarily as a consequence of the ongoing and unknown future impact of COVID-19. As previously stated this level of uncertainty makes any forecasting challenging. However, trading has remained in line with our expectations, and we continue to expect to comply with our debt covenants at .31 December 2020

, Chief Executive Officer, said:Jon Lewis

“Our focus on our colleagues’ wellbeing and client service delivery has helped us deliver a resilient performance across most of our operations. Despite the ongoing challenges caused by COVID-19, Capita has continued to trade in line with our expectations.

“We continue to make progress to strengthen the balance sheet with the disposal of non-core assets, including the proposed sale of our education software business.

“We remain focused on building towards a more focused, sustainable Capita for the long term.”

These figures are from Capita’s management accounts and are subject to further review and change. This financial information is subject to Capita’s additional financial review procedures, including additional review by Capita’s management team and audit by Capita’s external auditors. As a result, Capita’s actual results could vary from the figures for the three months ended and these differences could be material.130 September 2020

Capita presents various alternative performance measures as the Directors believe these are useful for the financial statements in helping to provide a balanced view of, and relevant information, on Capita’s financial performance.  Adjusted numbers exclude business exits; restructuring items and other specific items as described in our annual report.2

 

Tel: 07989 665484 Email: Investor enquiries


Stuart Morgan[email protected]

Capita external communications Tel: 0207 654 2399 Email: Media enquiries


[email protected]

LEI number: CMIGEWPLHL4M7ZV0IZ88

About Capita

Capita is a consulting, transformation and digital services business. Every day our 61,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between businesses and customers, governments and citizens. We partner with clients and provide the insight and cutting-edge technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate in the , , and – and across six divisions: Customer Management; Government Services; People Solutions; Software; Specialist Services; and Technology Solutions.UKEuropeIndiaSouth Africa

Capita is quoted on the London Stock Exchange (CPI.L).

Further information can be found at:   http://www.capita.com

Management accounts for 3 months ending1: 30 September 2020 30 September 2019
                                                         £m                £m

Reported revenue                                        803               902

Reported operating profit                                36                12

Adjusted2 revenue                                       794               878

Adjusted2 EBITDA                                        115               111

Adjusted2 operating profit                               66                66

Quick facts: Capita PLC

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Market: LSE
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