Capita now expects it will see a “high-single digit” adjusted revenue decline in FY24, down further from the “low- to mid-single digit” percentage reduction it projected in August.
A year-on-year improvement in margins however, will deliver an unchanged operating profit outlook for the period, said the IT services provider.
In a trading update this morning, Capita said, on a like-for-like basis, revenue for the eleven months ended 30 November was down 8% year-on-year.
Plans for £140m of the £160m annualised cost savings target at the company have now been actioned. Additional savings from AI use have also now been identified, with the cost savings target now raised to “up to £250m” by December 2025.
Capita’s share price still fell after the trading update though, and the company is worth approaching a third less less than at the start of this year.
-The UK government has approved the acquisition of a quarter foreign stake in BT Group by Bharti Global, the investment arm of India’s Bharti Enterprises.
The government decision came after an assessment of the potential impact on national security, and assurances from BT, which provides critical national infrastructure, and is at the centre of key government contracts across national intelligence, cybersecurity, and the armed forces.
The purchase of a 24.5% stake in BT Group, worth £3.2 billion, was originally made by Bharti Global in August this year, with the shares acquired from Patrick Drahi's Altice, who was, until recently, BT’s largest shareholder.
Bharti Global has previously stated publicly it has no intention of making an offer to buy the whole of BT Group.
-The latest Dell’Oro Group research shows that 3Q 2024 worldwide Ethernet campus switch revenues plunged 24% year-on-year, marking the fourth consecutive quarter of declines, driven by contractions in the Americas region.
Despite this, research director Siân Morgan highlights signs of recovery: "Wi-Fi 7 adoption and multi-gig switch port demand will fuel 2025 growth."
Key players, like Arista, NETGEAR, and Ubiquiti are poised for gains with “innovative strategies”, said Dell’Oro Group.
-Growing cloud data backup provider Keepit has sealed a further $50m funding round, led by existing investor One Peak, and EIFO, the Export and Investment Fund of Denmark. This funding round marks the company’s third equity investment in the past four years, bringing total funds raised to approximately $90m.
The latest investment underscores Keepit’s rapid growth and solidifies its position as one of the leaders in SaaS data protection. The new investment will be directed towards expanding the company’s go-to-market efforts, and fuelling continued product innovation.
Keepit’s solutions already support 5m users globally. Keepit is now poised to accelerate its global expansion strategy, prioritising key markets like the US, Europe, and other high-growth regions, while bolstering its network of partners.
-Technology services provider Emerge Digital has announced a round of new contracts worth around £500,000, as companies in South West England seek to innovate and modernise their operations, said the provider.
Everhot, The HR Dept, Green Gourmet, Bannister Transport, 4R Group, Blueprint Project Solutions, and Deya Brewing Company are the latest in the region to undergo digital transformation projects with the support of Emerge Digital, while firms BWS Group, Lakes Showering Spaces, Frog Environmental, H&H Distribution and Constructing Excellence South West have agreed ongoing IT support contracts.
“From AI adoption and app development to CRM updates and IT support, these new installations will update and improve the processes, products and outcomes for these businesses and their customers,” said Emerge Digital.
In the last 12 months, Emerge says it has increased its revenue by 30% and customer base by 26%, with these latest contracts contributing to 84% growth for its Innovation arm, which handles all client projects involving “new, cutting-edge technologies”, such as AI and automation. These projects are contributing to Emerge Digital’s two-year growth plan, to double revenue by “mid-2026”.
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