Capita plc Half Year Results 2021

Date Published



  • H1 financial results in line with expectations: revenue maintained, profit and margins increased, net debt reduced
  • Inflecting to growth: Total Contract Value won of £2.6bn in H1; In Year Revenue won up 13% half-on-half 
  • Strengthening balance sheet: £536m disposal proceeds generated year to date, liquidity of £693.7m at 30 June 2021 
  • New operational structure implemented 
  • Expect to deliver revenue growth this year and sustainable free cash flow2 in 2022


H1 2021 Financial outcome

  • Adjusted revenue in line with last year at £1,584.7m (H1 2020: £1,582.1m) despite the ongoing impact of Covid-19
  • Adjusted profit before tax increased by £56.4m to £45.3m (H1 2020: loss £11.1m) reflecting stabilised revenue and ongoing efficiency delivery from the cost transformation programme
  • Net debt (IFRS 16) reduced by £182.7m to £894.4m (31 December 2020: £1,077.1m) reflecting adjusted free cash flow1 growth, with disposal proceeds partially offset by catch-up pension deficit contributions. Pre-IFRS 16 net debt reduced to £427.8m (31 December 2020 £569.0m


Six months ended 30 June 2021

Financial highlights - continuing operations

Reported 2021

Reported 2020

Adjusted 2021 (1)

Adjusted 2020 (1)

Adjusted (1)

YOY change







Profit/(loss) before tax






Cash (used) / generated by operations






Free cash flow






Net debt






1 Capita reports results on an adjusted basis to aid understanding of business performance.

2 Sustainable free cash flow = reported free cash flow excluding the impact of disposals




On track for revenue growth in 2021

  • Won Total Contract Value of £2,576m, an increase of 70% on prior year (H1 2020: £1,513m)
  • In Year Revenue won in H1 of £769m, up 13% on prior year (H1 2020: £680m), supporting our positive outlook for growth in the full year and the medium term


Strengthening the balance sheet 

  • 75% of targeted £700m in proceeds to address short-term maturities already achieved
  • Completed the disposal of ESS in February for initial £299m, with a further £45m received in July and AXELOS completed in July for £182.2m
  • Targeting further £175m of proceeds from subsequent disposals by end of H1 2022 
  • RCF extended, triennial pension valuation completed



  • Expect full year revenue growth in 2021, driven by new contracts and recovery in Covid-affected businesses
  • Operational performance and cost savings driving operating leverage
  • Continue to strengthen balance sheet through ongoing disposal programme
  • Building a more focused, sustainable business for the long term, delivering sustainable free cash flow2 in 2022


Jon Lewis, Chief Executive Officer, said:

"I am pleased with the progress we have made with our strategy and the priorities we set out in March. We have maintained revenue; increased profit; strengthened the balance sheet; and implemented our new, simpler, more client-focused divisional structure.

“We have continued to deliver a good operational performance, won significant new business and have a strong pipeline of opportunities to come in the second half. We have also reduced our net debt, completing £536m of disposals already this year – with more to come.

“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 flow2 in 2022.

“This performance has only been made possible by the outstanding commitment of our talented colleagues, whom I am so honoured and proud to work alongside. I would like to thank all of them for their hard work and professionalism.”

Investor presentation A presentation for institutional investors and analysts hosted by Jon Lewis, CEO and Tim Weller, CFO, will be held at 08:30am UK time, Friday 6 August 2021. This will be a live audio webcast on our website and 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 next working day.

Webcast link:

Participant Conference Call dial-in details:

United Kingdom 0800 640 6441
United Kingdom (Local) 020 3936 2999
All other locations +44 20 3936 2999
Access code 804478

View the full report for the 2021 half year results here