Outsourcing firm Capita said on Friday that it had returned to profit in the first half of its trading year, with the group securing £2.6bn of new contract wins.
Capita said adjusted pre-tax profits in the six months ended 30 June increased 508% to £45.3m, bouncing back from an interim loss of £11.1m a year earlier.
The FTSE 250-listed firm added that it was now on track for full-year revenue growth thanks to 70% increase in won total contract value during the period, driven by contracts from the UK government, particularly in its health and welfare and defence divisions.
Revenues dipped from £1.68bn to £1.61bn, while in year revenues were up 13% at £769.0m and Capita’s order book grew from £5.9bn at the beginning of the half to £6.7bn at the end.
Net debt was reduced to £894.0m from £1.09bn and adjusted free cash flow improved 12% to £130.7m.
Chief executive Jon Lewis said: “We are delivering on our plans and remain on track to deliver organic revenue growth this year for the first time in six years and generate sustainable free cash flow in 2022.”
As of 1015 BST, Capita shares are up 0.42% at 36.14p.
