(Alliance News) - Capita PLC on Thursday said its revenue has climbed so far in 2023, and the outsourcer added it is on track to meet its medium-term guidance.

In the 11 months to November 30, Capita's adjusted revenue is 2.1% higher on-year.

"We have continued to make good progress against our core priorities and remain on track to deliver our medium term guidance of mid-single digit revenue growth, doubling our operating margin and delivering positive free cash flow," Chief Executive Jon Lewis said.

Its contracts won have a total value of GBP2.89 billion, up 47% from a year prior.

Capita said revenue growth abated in its second-half.

"The group's revenue in H1 was positively impacted by one-off benefits relating to the Virgin Media O2 contract transition and a commercial settlement. Excluding these one-off benefits, Capita delivered underlying revenue growth of 0.7% in the 11 months to 30 November compared with 3.2% in H1, with the slowdown in H2 reflecting the strong performance in the comparative period, particularly in the last quarter of 2022," the firm said.

Capita in November announced that around 900 jobs in its 50,000 workforce are at risk of redundancy, as it ramps up its cost-cutting drive.

The measures are to further its medium-term target of doubling its operating margin to 6%, as announced in its interim results in August. It had said the goal was underpinned by plans to cut costs by GBP40 million per year by the end of 2024.

The company suffered from a major cyber attack back in the spring, which saw hackers access the data of some clients and staff. Around 90 organisations wrote to the UK Information Commissioner's Office to report a potential breach of the data in relation to the incident.

Capita shares were 0.8% higher at 20.90 pence each in London on Thursday afternoon.

By Eric Cunha, Alliance News news editor

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