Capita sees revenue growth; Sells Axelos stake for £183m
By Frank Prenesti
Date: Monday 21 Jun 2021
(Sharecast News) - UK outsourcer and government contractor Capita on Monday said it was on track to post revenue growth for the first time in six years as trading in the first half of 2021 improved.
It also said it had sold its 51% stake in Axelos, a joint venture with the British government's Cabinet Office, to PeopleCert International for £183.6m in cash.
Capita said the deal, which values the joint venture at £380m, will see it receive net cash of £172.5m on completion, along with a cash dividend of £11.1m as it looks to sell off non-core assets to boost its balance sheet.
The disposal is part of Capita's transformation plan, launched in March after the Covid-19 pandemic hit its efforts to return to sustained profit and growth.
The company, which expects its first-half adjusted revenue to be at similar levels as last year, also said it was on track for £50m in annualised savings from 2022 onwards.
"Looking forward, we are confident of delivering positive sustainable free cash flow in 2022," said chief executive Jon Lewis.
Capita said it continues to make good progress with planned disposals and is on track to realize combined proceeds of at least £200m this year.
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