Capita (CPI: LSE) the UK-based provider of business process outsourcing solutions and professional support services reported revenue of the six months to 30 June 2017 of £2.06 billion, a decrease of 3% compared to last year and an increase of 1% on a like-for-like basis.

Underlying figures were published as follows:

Earlier this year, the group announced that it had completed the disposal of its transactional specialist recruitment businesses and implemented its new organisation structure and progressed a number of cost initiatives. Capita also announced the sale of the Capita Asset Services businesses to Australia-based Link Administration Holdings for a cash free, debt free consideration of £888 million and it is expected to be completed in Q4 2017.

“We have completed the disposal of our stand-alone, transactional specialist recruitment businesses (education, social care and health personnel) to Endless,” Capita said in a statement. “We are committed to our remaining Workplace Services businesses which include our public and private recruitment process outsourcing (‘RPO’), executive search, vetting, employer branding agency and learning services businesses.”

The company added that these actions increase the group's focus upon technology-enabled Business Process Management, reduce leverage and “leave us better placed to return to sustainable growth over the course of 2018 and beyond.”

The group also announced that Chief Executive Andy Parker stepped down from the Board and left Capita on 15 September 2017. Nick Greatorex, Capita’s Group Finance Director, was appointed as Interim Chief Executive from that date until a successor takes up the post as Capita’s new Chief Executive.

Capita also announced that it had made ‘two small acquisitions’ in the first half of 2017, which include Acutest, a provider of software testing services; and NYS, a travel management business. The aggregate consideration for these businesses was £10 million, excluding deferred and contingent consideration.

“Capita has early adopted IFRS 15, the new revenue recognition standard, and is reporting its performance in 2017 against the comparative period in 2016 under this new standard,” the group stated.

“Trading was broadly in line with our expectations in the first half of 2017,” Capita stated. “The turn-around of our IT Services division progressed better than expected, following restructuring of the management team and operating model, but we continued to be impacted by weakness in a number of discretionary services. We improved our major contract win rate in a relatively subdued business process management market in the public sector.”

Capita added that profit rose as a result of a significant improvement in the performance of its IT Services division and higher profits from a number of major contracts.

“In the first half of 2017, we made good progress on executing the plans laid out at the end of last year to reposition the group: we announced the sale of our Asset Services businesses, completed the disposal of our specialist recruitment business and commenced a number of cost initiatives,” Nick Greatorex of Capita plc, said. “We remain confident that these actions are making Capita a simpler business, well positioned for the future under new leadership."

Capita added that cost initiatives are on track to realise around £57m savings by the end of 2018.

In its outlook, Capita stated, “Following the receipt of proceeds from the disposal of our Asset Services businesses and expected cash flow in the second half of the year, we expect leverage to fall to around the bottom of our 2.0 to 2.5 times range at the end of 2017. Subject to the completion of this disposal, we may choose to unwind our receivables financing and, in conjunction with the impact of IFRS 15 upon contingent obligations under bonds and guarantees, this may result in leverage being around the middle of our range.”

“We remain confident that the actions we commenced last year are making Capita a simpler business, well positioned for the future under new leadership,” Capita stated.

As of last trade, Capita PLC (CPI:LSE)traded at £575.00, down 10.71% on the day and 33.32% above the 52 week low of £431.30 set on 9 December 2016. Based on its current share price the company has a market value of £4.30 billion.