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Capita half-yearly profits fell on a decline in revenues as the company continued efforts to restructure its business to control costs and pay down debt.
For the six months ended June 30, pro-tax profits fell to £31.2m from £42.3m a year earlier and revenues slipped to £1.85bn from £2.01bn.
The company said its multi-year transformation, which entered its second year, remained on track to achieve the targets set in 2018.
Brexit, which continued to affect the volume of new policy initiatives by government departments, may present 'new opportunities for private sector contractors in the long term,' Capita said.
Capita's financial outlook for the year remained unchanged.
'We continue to expect profit before tax to be between £265m and £295m,' the company said, with finance costs in the region of £40m and net debt to EBITDA ratio to be in the top half of our stated range of 1.0 times to 2.0 times for the year.
'We are on track to deliver our 2020 targets of £175m cost savings, double-digit operating profit margins1 and at least £200m of sustainable annual free cash flow, before exceptional and restructuring charges, additional pension contributions and the adoption of IFRS 16, it added.
At 9:11am: (LON:CPI) Capita Group The PLC share price was +16.25p at 132.8p