Capita Group (LSE: CPI)

Last close As at 20/11/2024

GBP0.17

0.20 (1.19%)

Market capitalisation

GBP290m

Capita Group is a UK-based consulting, digital services and software business that provides outsourcing and professional services to clients across the public and private sectors.

Sector

Industrials

Key Management

  • Pablo Andres

    CFO

  • Adolfo Hernandez

    CEO

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (19.1) (6.9) (11.5)
Relative (16.2) (4.6) (18.1)
52 week high/low 22.7p/12.5p

Financials

Capita faced numerous cash drags in FY23, notably £20m in costs associated with a cyber incident, a £30m pension deficit contribution and a £20m increase in technology capex, which depressed the adjusted free cash outflow before disposals to £116m (£42.4m outflow in FY22). Despite these challenges, the implementation of a rigorous cost efficiency programme and the strategic divestment of non-core assets have the potential to fuel a turnaround. Some £160m of annualised cost savings are expected to be realised by mid-2025 (part reinvested for growth), aimed at bolstering a significant improvement in operating margins. As margins improve, shifting to faster-growing market segments with a more competitive cost base could catalyse a reduction in the valuation discount.

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