Capita (CPI) Trading Update summary

Revenue and business performance

• Adjusted revenue remained broadly consistent with the first half, with Public Service growing 4.0% but moderating in the second half due to client-driven delays.

• Contact Centre revenue declined 18.3% due to prior contract losses and volume reductions, especially in telecommunications.

• Pension Solutions saw improved growth in the second half, achieving 1.5% year-to-date growth.

• Regulated Services revenue dropped 14.3% as planned contract handbacks continued, finalizing exit from this sector.

• Full-year expectations: Public Service growth slightly below mid-single digit, high-teen reduction in Contact Centre, and low-single digit growth in Pension Solutions.

Strategic and operational progress

• Achieved £250m in annualized cost savings, enhancing competitiveness through AI investment.

• Launched AI Catalyst Stack to operationalize AI at scale, aiming to be the first AI-enabled business process outsourcer.

• Settled with the ICO regarding the March 2023 cyber incident.

• Signed final transition agreement for remaining closed book Life & Pensions contracts.

Contract pipeline and innovation

• Unweighted contract pipeline increased 41% since half year, reaching £16.5bn, the highest in several years.

• £3.5bn of pipeline opportunities have a strong technology component.

• AI Catalyst Lab launched, focusing on 12 areas including customer service and operational support, with over 130 agents now active.

• Catalyst Lab received more than 550 opportunities and use cases since launch, shaping future innovation.

• AI Catalyst Stack for customers leverages operational expertise and partnerships to embed AI in critical services.