StockMarketWire.com - Outsourcing and services company Capita warned of lower first-half revenue this year as performance was hurt by the Covid-19 pandemic and contract losses. Revenue in the first half of the year was expected to be around 10% lower than 2019, of which 5% related to Covid-19, the company said.

Contract losses reported in 2019, was also expected to lead to a small decline in trading in the first half.

The company said it had delivered £45m of cost savings during the first half, and expected 'significant' further savings in the second half.

Looking ahead, Capita said the sale of the Eclipse business and the planned disposal of Education Software Services would strengthen the balance sheet.

Last week, the company announced it had agreed to sell Eclipse to Access UK Limited for £56.5m, with the transaction expected to be completed shortly.

'Proceeds from both of these disposals will be used to strengthen the company balance sheet by reducing net debt and pension liabilities. Further disposals will be considered in due course,' Capita said.



At 8:11am: [LON:CPI] Capita PLC share price was -0.42p at 46.13p



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