Capita has reported a 9% fall in revenue to £1.2bn in its first half results as the outsourcing group confirmed it is to continue with the cost-cutting operations it announced last year.

The firm hopes to slash £160m in costs as it seeks to refocus on core segments in a bid to strengthen financial performance and cash generation.

Capita still posted a pre-tax profit of £60m for the first half of 2024, to rebound from a £67.9m loss in H1 2023. Operating cash flow more than doubled during the group’s first half and climbed to £74m, from £34m last year.

The group’s CEO, Adolfo Hernandez, said: “Our focus is on ensuring that the value we create for those stakeholders is reflected in the financial performance of the business and I am excited about the future and the progress we've made in a short period of time.

“We are implementing changes that will make us more competitive and drive growth, by becoming more efficient and spending less, digitising our offerings and leveraging technology partnerships. This, together with more precision in delivery and evolving our culture, is enabling us to accelerate execution.”

Hernandez added that Capita remains “on track” to deliver on its cost reduction programme, having taken action to deliver £100m out of the £160m of annualised cost reductions it aims to achieve by June 2025.

“This will support our planned improvement in the adjusted operating margin of the group, which in the first half increased from 3.1% to 4.5%,” he added.

“We have much more to do, but I am pleased that Capita is making encouraging progress in its journey to deliver its medium-term financial targets and create sustainable value for all its stakeholders.”

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