Latest newsletter from Capita
10 mins read
Creating better outcomes
Trading during the pandemic
Capita and its people have, like thousands of other businesses, faced numerous challenges and uncertainties over the past quarter. But, thanks to the hard work and professionalism of our colleagues,
we have delivered a strong operational response to the Covid-19 crisis. This has only been possible due to the actions we have taken over the past two years to simplify and strengthen the organisation.
On 25 June, we shared a trading update with the market, ahead of our half-year results, detailing how we’ve been performing in the current economic climate. We anticipate that revenue in the first half will be around 10% lower than 2019; 5% of this decline relates to Covid-19.
A small decline in trading was expected in the first half due to contract losses reported in 2019.
We have had to take tough but prudent decisions to protect our financial position – and will continue to do so, if necessary. In the first half, we delivered cost savings of £45m and that has helped mitigate the financial impact of Covid- 19. We expect significant further cost savings to be delivered in the second half of the year.
We have continued to secure contract wins, extensions and renewals, details of which can be found in this newsletter. And, despite the impact of Covid-19, we’ve seen a resilient performance across our business, driven by our long-term partnerships with government and blue-chip clients.
Our response to the current crisis
We’ve continued to work alongside government throughout the pandemic, bringing together strengths from across our divisions to provide technology, customer management expertise and digital solutions when they are needed the most.
We deployed our largest ever virtual workforce to support the Department for Work and Pensions with the huge surge in demand for its Universal Credit helpline which supports vulnerable people. Within days of receiving a brief, we were able to support the NHS with the vetting, documentation and onboarding of returning doctors and nurses to the NHS front line to support the Covid-19 response.
Our software solutions and technology capabilities have enabled businesses, individuals and schools to continue to work and operate remotely during the Covid-19 crisis. We’ve continued to deliver for new and existing clients and businesses, to react, often at short notice, to increasing demand and a changing customer landscape. We’ve demonstrated that, even in times of adversity, we’re a reliable partner in providing the customer service resource, expertise and technology organisations need to handle the increasing number
of customer queries.
Our priority during these unprecedented and challenging times remains the well-being of our colleagues. As we emerge from Covid-19, our approach will continue to be careful, measured and put the safety of our people first. While it’s very difficult to predict how things will develop, our pandemic framework will be our guide as we continue to navigate this crisis. This provides an overview of where we are now and what this means for
how we work.
Looking beyond Covid-19, we’re also considering how the effects of the pandemic will shape our future as a company; and how we can build on this experience to drive us forward as a consulting, transformation and digital services business. We remain committed to our strategy, but we must be ready to learn, adapt and evolve the ways we implement it, if we are to remain resilient for the long term.
Despite all the challenges, Capita remains – first and foremost – a purpose-led business. We must ensure that our purpose – to create better outcomes for all stakeholders – remains our guiding light.