Outsourcing firm Capita said its contracts with the Royal Navy had bumped up revenues in the past 11 months and it had slashed its debt levels by offloading areas of the business, as it updated the market on the year’s trading.
In a trading update today for the past 11 months, the firm said it had notched a two per cent jump revenues across the group and raised £462m this year by shedding areas of the business, including its property pillar and Pay360 arms for a combined £239m in total.
“This has been delivered mainly by the full year impact of the Royal Navy training contract as well as revenue growth in Justice, Central Government and Transport, offsetting previously announced Local Government contract exits,” the firm said in the statement.
Group chief Jon Lewis said he was “pleased with the progress we have continued to make across Capita in the second half of the year.”
“We are building on the platform we created, performing well and delivering further revenue growth, while continuing to strengthen the balance sheet,” he added.
The firm has been on an offloading spree and said it expects to have completed the disposal of its portfolio business which will result in a “very low level of financial debt”.
As part of the disposal process, the firm has also ramped up its scheduled pension deficit payments which it said will “further strengthen the pension fund’s position”.