Capita offloads resourcing wing as it continues bid to reduce £482m debt bill
Outsourcing giants Capita has agreed the sale of its resourcing wing for £21m, as it continues its bid to slash its debts.
The company has offloaded Capita Resourcing, HR Solutions and ThirtyThree to Inspirit Capital, and will take in £17m for the agreement.
In Capita’s results on 2 March, it reported a 2.4 per cent increase in its revenue to £2.8bn, and a £197m increase in adjusted profit before tax.
Capita also announced it had reduced its net debt to £482.4m in 2022 down from £879.8m in the previous Covid-hit year.
This comes after it announced the sale of ‘non-core’ arms to the business to shore up its balance sheet. This included the sale of Pay360 payments processing firm two real estate and infrastructure consultancy businesses and its Optima Legal and translation firms.
Capita, the largest outsourcing firm in the UK, said the top management teams and employees will remain employed by the companies as they move over to Inspirit.
The outsourcing giant provides ‘human capital resourcing’ services to a wide variety of public and private industries, including defence, education the NHS and construction.
It said the revenue and profit before tax of the combined companies up until 31 December was £78m and £10m, and the deal will be subject to National Security and Investment Act approval.
“We are pleased to have agreed the sale of our resourcing services businesses to Inspirit Capital, following a competitive sale process”, said Capita’s chief executive Jon Lewis.
“The transactions offer significant growth opportunities for the businesses, their clients and colleagues.
“It also marks another significant step towards reducing Capita’s debt, as we continue to simplify and strengthen the organisation, and become a more successful business for the long term.
“We remain focused on selling the majority of the remaining non-core Portfolio businesses throughout the first half of 2023 depending on general market conditions.”