• Acceleration in financial performance
• Good growth momentum; minimal impact from cyber incident
• Consistently strong delivery of operational KPIs
• Improved employee engagement; reduced employee attrition
• Funding position transformed with RCF extension, USPP and disposal programme close to completion
• Foundations for sustainable long term growth further strengthened

H1 2023 Financial results

• Adjusted revenue¹ increased by 6% to £1,402.4m (H1 2022: £1,326.0m) with growth in underlying trading and
one-off benefits in Experience from Virgin Media O2 contract transition and a commercial settlement
• Adjusted profit before tax¹ increased by £8.4m to £33.1m (H1 2022: £24.7m)
• Reported loss before tax of £67.9m (H1 2022 profit: £0.1m) due to business exits, non-core Portfolio goodwill
impairment and costs associated with the Group's cyber incident
• Free cash outflow excluding business exits² * of £53.4m (H1 2022 outflow: £16.5m) reflecting increased working
capital, the cyber incident and increased digital investment
• Post-IFRS 16 net debt reduced by £165.8m to £544.6m (30 June 2022: £710.4m) driven by Portfolio disposal
programme and continued rationalisation of leased property estate

Growth momentum

• Total contract value (TCV) won of £1,357m (H1 2022: £1,413m); book to bill maintained at 1.0x
• Secured £250m TCV on Disabled Students Allowance framework with Student Loans Company in July
• Preferred bidder on £565m TCV in Public Service for Functional Assessment Services with Department for
Work and Pensions, expected to be signed in the second half of 2023
• TCV awarded at 31 July, £2.2bn; up 54%
• In year revenue increased 22% to £650m (H1 2022: £534m), strong performance in Experience

Transformed funding position

• RCF of £280m extended to 31 December 2026
• Issuance of £101.9m of USPP in July
• Continued progress on non-core business disposal programme
     ◦ Completion of People pillar disposal in H1 23
     ◦ Completion of Software and Business Solutions disposals in July, c.£45m net proceeds received


• Full-year expectations remain unchanged
• On track to deliver acceleration in financial performance in 2023
• Target to double the Group EBIT margin over the medium term, underpinned by £40m cost savings by the end of 2024

Jon Lewis, Chief Executive Officer, said:

“I am pleased with the good progress we continued to make at Capita during the first half of the year as we accelerate our financial performance.

“Our strategy, focused on two core, growing markets is working. We have delivered increased adjusted revenue growth for the fourth successive reporting period, improving profitability, winning an increasing amount of work with new clients, and remain on track to deliver on our full-year expectations.

“We have seen an improvement in our employee net promoter score alongside reduced levels of attrition; and I would like to thank all our people for their continued hard work, commitment and professionalism.

“Our strong client relationships, long-term contracts, increasingly competitive and digitised solutions, engaged colleagues and reputation for delivery mean we have a resilient business, well positioned for further growth.”

Six months ended 30 June 2023

Financial highlights

Reported 2023

Reported 2022

Reported POP change

Adjusted¹ 2023

Adjusted¹ 2022

Adjusted¹ POP change








Operating (loss)/profit














(Loss)/profit before tax







(Loss)/earnings per share







Cash (used by)/generated from operations*







Free cash flow²*







Net debt







Net financial debt (pre-IFRS 16)







¹ Capita reports results on an adjusted basis to aid understanding of business performance.
² Following feedback from investors, the Board has revised its definition of free cash flow and free cash flow excluding business exits alternative performance measures. Both these metrics are now presented after deducting the capital element of lease payments and receipts.
* Adjusted cash generated from/(used by) operations and adjusted free cash flow adjusted results exclude the impact of business exits (refer to note 9).

Investor presentation
A presentation for institutional investors and analysts hosted by Jon Lewis, CEO and Tim Weller, CFO, will be held at 09:00am UK time, Friday 4 August 2023. This will be held at Capita offices at 65 Gresham Street, London EC2V 7NQ. A live webcast will also be available ( 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:

For further information:
Capita press office         
T +44 (0) 2076 542 399



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