Capita (CPI:LSE), the provider of business process outsourcing solutions and professional support services, announced underlying revenue for the full year ending 31 December 2016 of £4.8 billion, an organic increase of 3.4% compared with £4.6 billion last year.

Operating profit declined as a result of £25 million one-off costs in relation to the delayed delivery of new IT systems on the Transport for London (TfL) congestion charging contract, the step down on O2 and weak trading in technology solutions and IT enterprise services, property and Capita Europe. Capita announced last month that as part of the group’s year-end process, they undertook a comprehensive review of its major contracts.

The company announced £1.3 billion of major contract wins and extensions including mobilcom-debitel, which was selected as strategic partner to deliver transformational customer services, with a 7 year contract expected to be valued at £197 million. Major contract wins also included Tesco Mobile, Debenhams Retail plc and BBC TV Licensing.

Capita also announced that chief executive Andy Parker would step down later this year after a replacement has been found.

Capita is also under investigation over the way it collects the TV licence fee on behalf of the BBC, after allegations that its collectors targeted vulnerable people, spurred on by an aggressive incentive scheme.

The company will also drop out of the FTSE 100 this month due to its falling share price.

“2016 was a challenging year and Capita delivered a disappointing performance,” Andy Parker, Chief Executive of Capita plc, said. “We are determined to turn this performance around. We have taken quick and decisive action to reduce our cost base, increase management accountability, simplify the business, strengthen the balance sheet, and return the group to profitable growth.”

“We have achieved a great deal but going forward it is time for a new leader to take Capita through the next steps to renewed and sustainable organic growth," Parker said.

“We remain very confident that our target markets continue to offer long-term structural growth,” Parker said. “Capita is well placed in these markets with our unique set of complementary capabilities and the talent of our people. The bid pipeline of major contract opportunities remains active, and we are also seeing success in providing additional new, high value, replicable services to clients.”

“The proposed sale of our Asset Services businesses and Specialist Recruitment businesses are on track. We have received good interest and, following regulatory approvals where required, we remain confident in concluding these transactions this year, which will leave us with a more focussed Group and significantly strengthen our balance sheet,” Parker said.

“We expect 2017 to be a transitional year for the business, as we complete our disposals, bed down the structural changes inside the business, and re-position Capita for a return to growth in 2018,” Parker said.

According to Capita, full year results were impacted due to several reasons. Capita stated that the business process management market in 2016 was generally more subdued, some client decisions were deferred, and the company also won a lower proportion of major bids than in recent years. Furthermore, some of its businesses underperformed, and they experienced weakness in a number of discretionary services towards the year end.

In trading today, Capita PLC traded at £510.50, down 9.65% on the day and 18.36% 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 £3.7 billion.