Market Analysis

Capita, a British outsourcing group, has announced strategic initiatives to enhance its financial performance and cash flow by narrowing its focus on core business segments. 

Following an annual loss and increased cash outflows attributed to a cyber incident and business exits, the company is implementing cost-cutting measures totaling approximately £100 million. CEO Adolfo Hernandez emphasized a technology strategy emphasizing organic growth with minimal capital intensity, funded in part by reinvestment from a £160 million cost-saving program. 

Capita plans to concentrate on profitable customer solutions, particularly in public services, contact centers, and pension solutions. The company aims to streamline operations, reduce costs, and improve efficiency to achieve operating profit margins of 6%-8% in the medium term, with expectations for positive free cash flow starting in 2025.

Paraphrasing text from "Reuters" all rights reserved by the original author.