Capita (CPI) investor relations material

Strategic and operational progress

• Achieved £1bn in new contract wins in H1 2026, marking the strongest first-half TCV since 2021 in Public Services.

• Adjusted revenue grew by 1.6% in H1 2026, with Public Service and Pension Solutions divisions up 2.4% and 24.7% respectively.

• Extended revolving credit facility to £325m, now maturing in June 2029, enhancing financial flexibility.

• Progressing with the disposal of the private sector contact centre business, targeting completion before August 2026.

• Initiated simplification actions, delivering £8m in annualised cost savings toward a £40m target by end-2027.

Civil Service Pension Scheme update

• Significant operational issues acknowledged, with focus on resolving backlogs and improving service for bereavement, retirement, and quotation cases.

• Additional costs in 2026 expected due to surge resources and remediation, impacting adjusted operating profit by £25m–£40m and free cash flow by £35m–£50m.

• Automation and technology investments for the contract will benefit broader Pension Solutions clients.

• Group expects to return to positive free cash flow in 2027, before business exits.

Financial and trading update

• Public Service division maintains strong margin performance, with revenue and adjusted operating profit expected to be broadly flat year-on-year.

• Secured major new contracts, including Synergy Business Process Services and a Defence & National Preparedness client, both commencing in 2027.

• Maintained average KPI performance around 90% in Public Service throughout 2026.

• Technology partnerships advanced, including a multi-year agreement with Snowflake and new AI-enabled solutions.