Capita offloads resourcing businesses of £17m

(Sharecast News) - Outsourcing and professional services company Capita has agreed to sell its resourcing businesses to Inspirit Capital, for £21.0m on a cash free, debt free basis. Capita will receive cash proceeds of £17.0m for the sale of HR Solutions and ThirtyThree, which includes a deferred payment of roughly £7.0m receivable on 30 November.

The London-listed group also noted that the unit's senior management teams and employees will remain with the businesses as they transfer to the ownership of Inspirit Capital.

Reported revenues and pre-tax profits from the combined businesses came to £78.0m and £10.0m in the year ended 31 December 2022, respectively, while gross assets were £35.0m.

Chief executive Jon Lewis said: "We are pleased to have agreed the sale of our resourcing services businesses to Inspirit Capital, following a competitive sale process. 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."

As of 0825 GMT, Capita shares were up 0.26% at 39.22p.

Reporting by Iain Gilbert at Sharecast.com