Stable revenue underpinned by strong contract wins, further accelerated efficiency measures to drive growth and improve cash flow

Capita plc CEO Adolfo Hernandez said:

"Since joining Capita I have spent time with colleagues and met a significant number of clients and other stakeholders. I have been hugely impressed with the strength and expertise of our employees, and the breadth and depth of our services. We have deep relationships across a compelling client list, and we operate in growing markets where our work matters to the lives of millions of people every day.

"I am excited about the opportunity for Capita and can already see a range of areas where we can unlock value. Our 2023 financial results have demonstrated some progress. However, we have yet to deliver the operational excellence that will enable us to create the right platform for future growth or achieve our full potential for the benefit of shareholders. Looking forward, we will focus on precision in execution, co-creating solutions with clients and accelerating the use of technology and leveraging our technology partnerships to drive improvement in our operating and financial performance.
"We need to deliver a rapid reduction in our cost base and are on track to deliver the net £60m annualised cost savings, from Q1 2024 as announced in November. Today we are announcing further material efficiency improvements of £100m to improve our competitive position.

"We have strong foundations and the opportunity for significant growth in the medium and longer-term. I look forward to sharing more details on Capita’s future strategy in June."

2023 Financial Results

  • Adjusted revenue1 growth 1.3% to £2.6bn (2022: 1.7% growth)
    • Public Service marginal increase of 0.3%, Experience grew by 2.5% benefiting from one-off commercial settlement in H1Public Service marginal increase of 0.3%, Experience grew by 2.5% benefiting from one-off commercial settlement in H1
  • Adjusted profit before tax1 £56.5m (2022: £49.8m) up 14%, reflecting c.£20m profit benefit from commercial settlement in Experience
  • Reported loss before tax of £106.6m (2022 profit: £61.4m) reflecting business exits, cost reduction programme expenses and 2023 cyber incident costs
  • Free cash outflow1,2, before the impact of business exits, of £115.5m (2022 outflow: £42.4m), including £30m pension deficit contribution, £20m cyber incident costs and £20m step up in technology investment
  • Net financial debt (pre-IFRS 16)1: EBITDA ratio 1.2x at 31 December 2023 – proforma 0.9x if sale of Fera completed at year end

Contract wins

  • Total contract value won £3,036m (2022: £2,593m) driven by strong performance in Public Service
  • Book to bill ratio 1.1x (2022: 1.0x)
  • Contract win rate across all opportunities improved to 62% from 57%. Material improvement in win rate on new and expanded scopes of work from 32% to 70%, reduced renewal rate reflecting pricing discipline across all bids

Outlook for 2024

  • 2024 revenue expected to be broadly in line with 2023
  • Modest improvement in operating margin
  • Free cash outflow £70m to £90m after c.£50m cost of delivery of efficiency programmes

Clear pathway to deliver positive free cash flow in medium term

  • Delivery of net £60m from Q1 2024 annualised cost reduction on track
  • Triennial funding agreement with Pension Trustees - £30m reduction in deficit contributions by 2025 
  • Incremental £100m annualised cost reduction to be delivered over period to June 2025 – partially reinvested in growth


Financial highlights 

Reported results

Adjusted1 results

31 December 2023

31 December 2022

YoY change

31 December 2023

31 December 2022

Adjusted1 YOY change

Operating (loss)/profit
(Loss)/profit before tax
Basic (loss)/earnings per share
Operating cash flow*
Cash generated from operations*
Free cash flow*2
Net debt
Net financial debt (pre-IFRS 16)

*    Adjusted operating cash flow, cash generated from operations and free cash flow exclude the impact of business exits (refer to note 10).
1.    Refer to the alternative performance measures (APMs) in the Appendix.
2.    From 1 January 2023 free cash flow and free cash flow excluding business exits are presented after deducting the capital element of lease payments and receipts. Comparative amounts have been re-presented.

Investor presentation

A presentation for institutional investors and analysts hosted by Adolfo Hernandez, CEO and Tim Weller, CFO, will be held at 65 Gresham Street, London EC2V 7NQ at 09:00am UK time, 6 March 2024. There will also be a live webcast (link below) which will subsequently be available on demand. The presentation slides will be published on our website at 07:00am and a full transcript will be available the following day.

Capita will present a strategy update on 13 June. Details will be made available nearer the time.

Participant webcast:

Full year results 2023

Announcement by Capita CEO, Adolfo Hernandez

For further information:


Helen Parris, Director of Investor Relations    
T +44 (0) 7720 169 269

Stephanie Little, Deputy Head of Investor Relations    
T +44 (0) 7541 622 838

Elizabeth Lee, Group Head of External Communications    
T +44 (0) 7936 332 957

Capita press office    
T +44 (0) 2076 542 399


Dan Roberts & Jonathan Glass    
T + 44 (0) 2074 045 959


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