Shares of Capita PLC (LON: CPI) today surged 18.55% after the company revealed that its earnings in the three months to September 30 were in line with expectations despite revenues falling 11% to £803 million from £902 million.
The business outsourcing company reported adjusted earnings (EBITDA) of £115 million, up from £111 million in a similar period last year despite the drop in its overall revenues.
Capita said that it expects to honour its debt obligations up to December 31st, however, the uncertainty posed by the coronavirus pandemic had made it difficult for the company to forecast its future earnings.
The company confirmed that it was still in the process of offloading its Education Software Solutions subsidiary and that revenues from business units such as travel and training had been negatively impacted by the pandemic.
Jon Lewis, Capita’s CEO said: “Our focus on our colleagues’ wellbeing and client service delivery has helped us deliver a resilient performance across most of our operations. Despite the ongoing challenges caused by the coronavirus,”
“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.”
Capita share price
Capita shares today surged 18.55% to trade at 30.80p having risen from Monday’s closing price of 25.98p.