Economic news

UK Outsourcing Firm Capita to Sharpen Focus on Core Businesses

June 13 (Reuters) - British outsourcing group Capita unveiled strategic plans on Thursday to focus on its core segments as it aims to improve its financial performance and cash generation.

WHY IT'S IMPORTANT?

The company in March flagged cost-cutting steps worth about 100 million pounds ($127.8 million), after reporting an annual loss and wider cash outflows on costs related to a cyber incident and some business exits.

KEY QUOTES

"Our technology strategy will be organic with low capital intensity and will be principally funded through partial reinvestment of our previously announced 160 million pound cost- saving programme and refocusing of the business towards more profitable customer solutions," CEO Adolfo Hernandez said.

WHAT NEXT?

The company will start focusing on its public services, contact centres and pension solutions businesses. It will restructure and rightsize the organisation to reduce costs, drive efficiency and cash flow.

The group expects its operating profit margins to improve to 6%-8% over the medium-term, and free cash-flow generation from 2025 onwards.

($1 = 0.7826 pounds)

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu

Source: Reuters


To leave a comment you must or Join us


More news


Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree