Capita (CPI) investor relations material

Trading performance and financial update

• Adjusted group revenue grew 2.9% year-on-year, in line with expectations, driven by contract phasing, especially in Public Service.

• Capita Public Service revenue rose 5.8%, offsetting prior year contract hand backs.

• Pension Solutions revenue surged 23.4% due to the Civil Service and Teachers' Pension Scheme contracts.

• Retained Contact Centre revenue fell 7.0%, while Regulated Services revenue dropped 91.4% due to non-repeat contract exits.

• Total contract value won exceeded £750m, up 20% year-on-year.

Strategic and operational progress

• Transformation to an AI-led BPO continues, with the launch of Storefront on AWS Marketplace.

• Increased technology use in contracts, with up to 95% automation of routine enquiries and 35% productivity gains in pilot projects.

• Focused on resolving Civil Service Pension Scheme challenges, improving call centre and back-office operations.

• Operational KPIs in Public Service averaged over 90% in the first four months.

Business disposals and outlook

• Sale of private sector contact centre business progressing, expected to complete before H1 results.

• Sale will streamline operations, accelerate margin expansion, and unlock material overhead reduction.

• Full-year outlook: low to mid-single digit revenue growth in Public Service, mid-teen growth in Pension Solutions, and decline in Regulated Services.

• Annualised savings of £40m targeted across 2026-2027, with £20m cash cost.

• Positive free cash flow expected before business exits in 2026.