UK Stocks

Capita revenue grows for the first time in six years

Capita swings to annual profit.

The boss of Capita, Jon Lewis, has hailed the transformation of the company as it posted its first rise in revenue in six years.

Capita’s shares (LON: CPI) rose as much as 7% in the FTSE 250 after the CEO said his four-year transformation plan was now over following a complete overhaul to restore balance sheet strength.

In 2021 revenue rose by 0.4% to £3 billion, which ended six years of decline for the business.

Pre-tax profit swung to £286 million, from a loss of £49 million the year before.

The business won major contracts last year and extended deals with the Royal Navy and the RSPCA worth £3.8 billion, an increase of nearly a third, while its order book grew for the first time since 2017.

Shares had been trading at 400p prior to Capita’s debt crisis in 2018 and subsequently fell to languish at just above 20p.

Shares lifted 0.7p to 22.5p on the news but the boost for its shares has come a little too late to keep its place in the FTSE 250 in this month’s reshuffle.

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Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.

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