- Capita
- 13 June 2024 08:55:38
Source: Sharecast
Capita revealed cost-cutting measures worth roughly £100.0m back in March after it delivered a full-year loss and wider cash outflows on the back of costs linked to a cyber incident and a number of business exits.
The London-listed group will now zero-in on its public services, contact centres and pension solutions units. It will also restructure and right-size the group as part of an effort to reduce costs, drive efficiency and improve cash flow.
Capita expects operating profit margins to improve to 6%-8% over the medium-term, and eyes free cash-flow generation from 2025.
Chief executive Adolfo Hernandez said: "Our technology strategy will be organic with low capital intensity and will be principally funded through partial reinvestment of our previously announced 160 million pound cost- saving programme and refocusing of the business towards more profitable customer solutions.”
As of 0855
BST, Capita shares were up 1.29% at 14.18p.
Reporting by Iain Gilbert at Sharecast.com