Capita (CPI) Trading Update summary

Financial performance and guidance

• Adjusted revenue declined 4.5% in the first five months of 2025, in line with expectations.

• Public Service revenue grew 2.3%, offsetting prior year losses; Contact Centre revenue fell 21.1%.

• Regulated Services increased 6.4% due to a one-off exit fee and deferred income release.

• Total contract value won reached £969m, up 24% year-on-year, with strong growth in Public Service.

• Full-year guidance reiterated: broadly flat revenue, margin improvement weighted to H2, and free cash flow positive from end-2025.

Strategic and operational initiatives

• Focus on product innovation and scalable AI solutions to address evolving market opportunities.

• Over 200 AI use cases identified; five products launched in H1, more planned for H2.

• Internal adoption of Microsoft Copilot and ServiceNow to drive efficiency and support 25,000 colleagues.

• £185m in annualised cost savings achieved; on track for £250m by December 2025.

• Investment in AI skills and leadership development, with over 10,000 digital courses completed and 600+ apprenticeships started.

Technology and AI advancements

• First use of agentic AI with Agentforce AI, powered by Salesforce, reducing recruitment time from weeks to hours.

• Capita AI Catalyst Lab established to identify, test, and scale AI solutions internally and externally.

• Over 100 agentification opportunities identified across the group.

• Partnerships with technology hyperscalers to enhance agility and client responsiveness.

• AI-driven transformation positioned as a core pillar for future-proofing the business.