Outsourcing firm Capita pleased the market today despite its reported revenue slipping by £99m for the quarter ending 30 September.
Despite the fall in revenue to £803m for the quarter, Capita managed to maintain similar profits to last year on an adjusted basis – adjusted EBITDA came in at £115m for the quarter compared to the £111m for the same quarter last year.
The company confirmed that it is still looking to dispose of its Education Software Solutions business in a bid to drive down its debts.
While the falling revenue is a concern, the aggressive cost cutting throughout the business and expected sale of Education Software Solutions was somewhat reassuring to investors as the business faces an uncertain future:
“We continue to make progress to strengthen the balance sheet with the disposal of non-core assets, including the proposed sale of our education software business.
“We remain focused on building towards a more focused, sustainable Capita for the long term.”Jon Lewis, CEO of Capita
The share price of Capita (LON: CPI) jumped by 12 percent following the news to 29p. Shares in the company started the year at 168p.