British outsourcer Capita has today posted a £28.5m loss for the first half of 2020, saying it had taken a significant hit from the coronavirus crisis and would not generate sustainable cash flow for up to two years.
Capita employs more than 60,000 people globally and provides consulting and digital services to the public and private sector.
The company said it expected second-half revenue to be flat to slightly down from the first half of the year.
It said it had brought forward the sale of Education Software Solutions, a standalone business in the company's Software division, and would use the proceeds to strengthen its balance sheet.
"This crisis has come in a pivotal year for Capita when we had expectations of beginning to generate revenue growth and sustainable cash flow," chief executive Jon Lewis said in a statement.
"Instead, we have had to focus on managing our way through the crisis," he added.
As profits were "significantly" hit and plans to return to revenue growth has been delayed, the company said it would not generate sustainable cash flow for one to two years.
Net debt came in at nearly £1.1 billion as at June 30, slightly lower than last year. But the group said it expects it to return towards December 2019 levels as first-half benefits get reversed.
Its reported pre-tax loss for the six months ended June 30 compared with a profit of £31.2m a year earlier. Adjusted revenue fell 9% to £1.65 billion.
Capita's first-half results contrast sharply with rival Serco Group, which reported a jump in profit earlier this month.
