Capita to merge HR businesses into single division as part of transformation plan
Capita has set out plans to transform its business and raise £701m in additional capital at the same time as it unveiled a £513.1m annual loss.
The outsourcing firm - which owns a significant pensions and administration business - said its loss was impacted by £850.7m of "specific non-underlying items", including £551.6m goodwill impairment and a number of other asset impairments and provisions.
The company also said it would raise £701m through a rights issue to fund a reorganisation of the business.
Capita said its transformation plan would see its business reorganised into a divisional structure around five markets - software, human resources (HR), customer management, government services and IT services - a move the business says will increase its focus on customer management.
It said the move would bring together Capita's HR businesses - which include its pensions administration and employee benefits businesses as well as its associated digital platforms Orbit and Hartlink - as a single division called People Solutions, for the first time.
Capita said its move to bring together its three current HR offerings into one division across recruitment, learning and benefits would come as part of a drive to create a sales culture which enables customers to access multiple HR services within its portfolio.
It added the new People Solutions business would have a new leadership team - and the move to combine its capabilities across benefits, pensions, learning administration and recruitment outsourcing could enable it to participate in a £5bn market that it expects to grow at around 5% per year.
It said it would ensure there were standard data extraction and management tools across all businesses - and pledged to "strengthen its value proposition" in order to outperform the market by improving its core products and platforms, and strengthening its analytics capability.
It will look to standardise existing solutions and technological partnerships with key enterprise resource planning (ERP) providers to ensure its solutions can integrate with existing customer infrastructure.
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