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Capita PLC on Tuesday reported a weaker performance in the first half of 2025, but stood behind expectations for the full year. The London-based outsourcing company for business services swung to a pretax loss of £9.5 million during the six months that ended June 30, compared with a £60.0 profit a year prior. Revenue was down 6.5% at £1.16 billion from £1.24 billion on-year. Among the reasons for the decline was the fact that Capita recorded no gain on disposal of business, against a £38.1 million gain in 2024. However, Capita’s tax credit was £2.1 million in the first half, compared to a £7.1 million charge a year ago. The firm also reduced its net debt to £412.2 million at June 30 from £521.9 million on-year. Sales costs decreased to £941.5 million from £973.2 million, while administrative expenses were reduced to £209.1 million from £220.2 million. Capita shares were 3.8% higher at 290.09 pence midday Tuesday in London. They are up 21% in the past 12 months. The company maintained its target for flat adjusted revenue in 2025. It also upgraded guidance for the Public Service division, which now expects mid-single-digit percentage revenue growth rather than the low-to-mid-single-digit previous forecast. Pension Solutions aims for a mid-single-digit increase. A revenue reduction is still expected in the Contact Centre arm, in the mid-teens, and in Regulated Services, due to the surrender of some contracts. Overall, Capita is eyeing a ‘modest’ boost to its full-year margin, weighted to the second half, when the company hopes to realise the benefits of cost cutting measures. ‘The total value of contracts won by the group increased by 17% compared with the first half of last year, with increased interest from customers in our AI-driven solutions that bodes well for future growth and we have more than £4.4 billion of higher technology opportunities in the group pipeline,’ said Chief Executive Officer Adolfo Hernandez. Hernandez maintained that ‘discipline’ will aid recovery in the Contact Centre branch, and set Capita on track for £250 million in savings by December and positive free cash flow by the end of the year. ‘The operational performance and momentum we have seen in the first half of the year gives confidence in our delivery of the second half of the year and our full year outlook remains unchanged,’ Hernandez said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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