29 January 2025

Capita renews contract to deliver the Gas Safe Register

 

Capita plc (‘Capita’ or the ‘Group’) announces today it has been re-selected by the Health and Safety Executive (HSE) to continue to manage the Gas Safe Register, in a renewed contract worth £89 million which will run from April 2025 to December 2029.

The Gas Safe Register is the official list of gas businesses across the UK who are registered to work safely and legally on boilers, cookers, fires and all other gas appliances.

Capita has been successfully delivering the Gas Safe Register since 2009, which has grown from 35,000 to 80,000 businesses (more than 150,000 engineers) today, conducting over 55,000 competence checks, answering over 200,000 calls from engineers and the public, and receiving over 3.5 million unique website visitors in the 2023/24 contract year.

Capita is also responsible for promoting awareness of the register and general gas safety awareness to consumers across the UK.

HSE awarded the contract to Capita following a competitive tender process. As part of the new contract, Capita will ensure that new digital technology is embedded throughout processes to enable more effective and efficient delivery of the concession, and to improve the way consumers and engineers engage with the service.

Over the past 15 years Capita has developed the Gas Safe Register brand to build trust and has undertaken significant public gas safety awareness campaigns, including Gas Safety Week each September.

Adolfo Hernandez, Chief Executive Officer, Capita, said: "We are proud of our track record operating the Gas Safe Register, a critical service which helps keep people safe every day. This renewal is testament to the key role Capita plays as a strategic partner to government, using people, technology and processes to transform public sector services and improve citizen experiences.”

Notes to editors:

There is no IFRS 15 transaction price (order book) for this agreement as it is a framework contract.

For more information, please contact:

Investor enquiries Helen Parris Director of Investor RelationsTel: 07720 169269Email: IRteam@capita.co.uk

Stephanie LittleDeputy Head of Investor Relations Tel: 07541 622838Email: IRteam@capita.co.uk

Media enquiriesTel: 020 7654 2399Email: media@capita.co.uk 

About Capita plc

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s 41,000 colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

Sameer Vuyyuru

(shares purchased by Sameer Vuyyuru’s, son, Person Closely Associated)

 

2

Reason for the notification

a)

Position/status

Chief AI & Product Officer

b)

Initial notification

/Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Capita plc

b)

LEI

CMIGEWPLHL4M7ZV0IZ88

4

Details of the transaction(s): section to be repeated for (i) each type of instrument;

(ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of 2 1/15p each

 

 

 

GB00B23K0M20

b)

Nature of the transaction

Monthly share purchase under the Capita Share Ownership Plan

 

c)

Price(s) and volume(s)

Purchase of Shares within the Capita Share Ownership Plan:

 

Price(s)

Volume(s)

£0.140205

407*

 

*This comprises 356 Partnership Shares and 51 Matching shares.

d)

Aggregated information

-  Aggregated volume

 

-  Price

 

407 Ordinary shares

 

£0.140205

e)

Date of the transaction

2025-01-06

14:19 BST

f)

Place of the transaction

XLON

 

BLOCK LISTING SIX MONTHLY RETURN

the following information is released in accordance with LR 3.5.6:

Date: 02/01/2025

Deferred Bonus Plan

Name of applicant:

Capita plc

Name of scheme:

Deferred Bonus Plan

Period of return:

From:

01/07/2024

To:

31/12/2024

Balance of unallotted securities under scheme(s) from previous return:

1,122,860

Plus:  The amount by which the block scheme(s) has been increased since the date of the last return (if any increase has been applied for):

N/A

Less:  Number of securities issued/allotted under scheme(s) during period (see LR3.5.7G):

0

Equals:  Balance under scheme(s) not yet issued/allotted at end of period:

1,122,860

 

Name of contact:

Claire Denton, Company Secretary

Telephone number of contact:

020 7799 1525

 

2 January 2025

 Capita plc 

Director Declaration – Jack Clarke

In accordance with Listing Rule 9.6.14(2), Capita plc announces that Jack Clarke, independent non-executive director, stepped down from the Board of Essentra plc on 1 January 2025.

 

Investor enquiries 

Helen Parris, Director of Investor RelationsTel: 07720 169 269Email: IRteam@capita.co.uk

Stephanie Little, Deputy Head of Investor RelationsTel: 07541 622 838Email: IRteam@capita.co.uk

Media enquiriesCapita external communicationsTel: 02076 542399Email: media@capita.co.uk 

 

2 January 2025

 

Capita plc

 

(the "Company")

 

Voting Rights and Capital

 

Notification of alteration to total voting rights in accordance with the FCA's Disclosure Guidance and Transparency Rules provision 5.6.1R.

 

The Company advises that its capital consists of 1,701,273,523 ordinary shares of 2 1/15p each, as at 31 December 2024. The voting rights of these shares are identical with each share carrying the right to one vote. The Company currently holds no ordinary shares in Treasury. Therefore, the total number of voting rights in Capita plc is 1,701,273,523.

 

The above figure, 1,701,273,523 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Capita plc under the FCA's Disclosure Guidance and Transparency Rules.

 

In addition, the above figure includes 7,327,483 shares currently held by the Capita Employee Benefit Trust and therefore excluded from the Company's EPS calculation.

 

Name and signature of duly authorised officer of issuer responsible for making notification:

 

Claire Denton, Company Secretary, 020 7799 1525

 

17 December 2024

Trading and operating update

Capita plc (“Capita”)  

Good margin progression in 2024. Further focus on operating model delivers additional cost savings and underpins our Group medium-term targets

Summary:

Outlook for adjusted operating profit unchanged for 2024, with adjusted operating profit margin up c.50bps, largely driven by cost reduction initiatives Adjusted revenue1 was c.8% lower in the eleven months ended 30 November 2024, owing to exiting lower margin service lines and the impact of prior year headwinds. Good momentum on cost savings target of £160m, with £140m annualised savings, now actioned Experience of live projects and data capture creates significant opportunity to use more AI and generative AI in our service offerings, enabling cost savings target to be raised to up to £250m by December 2025 Increased employers’ National Insurance Contributions to have an annual cost of c.£20m with cost savings expected to mitigate these costs over the medium-term Expect a free cash outflow2 of £120m-£140m in 2024 as a result of lower revenues and a more sustainable approach to working capital management. Majority of the up to £50m additional cash restructuring costs to deliver additional savings, expected to impact 1H25 free cash flow. We expect positive and consistent free cash flow2 from the end of 2025 Progress exiting managed for value businesses. Completion of Capita One disposal in September 2024, c.£180m net proceeds received, providing funding optionality. 2024 year-end net financial debt to adjusted EBITDA, pre IFRS 16, expected to be <1.0x The Board is increasingly confident in delivering its 6-8% medium-term operating margin target

Strategic priorities

As outlined at the Group’s Capital Markets Day in June, the first priority of the ongoing transformation is improving the operating margin of the Group, which in turn will deliver free cash flow2 and adjusted revenue growth as we become more cost competitive.

Significant opportunities continue to be identified to fundamentally improve our operating model and drive cost efficiencies throughout the organisation, with the increasing use of AI and generative AI at the heart of this transformation. Consequently, the accelerating momentum of the current cost reduction programme has increased our confidence in the level of efficiencies that can be delivered, enabling us to increase our cost reduction target from £160m to up to £250m. Voluntary employee attrition of around 21% contributes to these savings, reduces the need for redundancies and the Group can ensure that it can rebalance new hires, incremental training of our colleagues and investment in key growth areas, particularly within the Contact Centre business. By combining people, processes and technology to develop repeatable scalable products we can drive efficiencies for our clients and make us more competitive. The progressive adoption of AI in the delivery of our client solutions will enable us to continue to focus on efficiencies in the future on a “business as usual” basis.

Increasing our operating cash conversion and a return to positive free cash flow2 is our next priority. Though the total cash cost of delivering the cost reduction targets will impact free cash flow by c.£50m in 2024 and up to £50m further in 2025, the combination of improving profitability, and the absence of pension deficit payments (from H2 2024 onwards) will contribute to positive and consistent free cash flow2 from the end of 2025.

We are increasingly focused on leveraging our domain expertise with technology solutions provided by our hyperscaler partners to deliver profitable revenue growth in the medium-term. The use of AI is already enabling us to deliver significant productivity and service quality improvements for our early adopting Contact Centre and Local Government customers, where those early clients have seen average handling time reductions of around 20%. We are also seeing some encouraging early successes on winning new contracts due to our enhanced service offering. Looking forward, we have opportunities which deliver AI solutions with the hyperscalers worth more than £5bn within the pipeline.

In 2024, we have accelerated the exit from lower margin activities, including the sale of our Mortgages Asset Services business which we expect to complete in Q2 2025 as detailed in yesterday’s news release. We will continue to exit those activities that are either low margin or where we have a limited right to win and as a result, we expect a broadly flat revenue performance in 2025.

Financial performance

Adjusted revenue1 was c.8% lower in the eleven months ended 30 November 2024.

Capita Public Service adjusted revenue1 reduced 0.9%, in the eleven months to 30 November 2024, driven by the continued impact of previously announced contract losses in 2023, the cessation of some lower margin services, and delayed mobilisations of two contracts in 2023 which impacted current year revenue and profit and will benefit 2025. These factors offset additional volumes in our contract with Transport for London and the benefit from indexation. Looking ahead, we have strong alignment with the UK Government’s priorities as outlined in the recent budget, particularly in areas such as Healthcare and Defence.

Capita Experience adjusted revenue1 reduced 16.3% in the eleven months to 30 November 2024.  The Contact Centre3 business declined 18.5% reflecting the one-off benefit from the Virgin Media O2 contract transition in the prior year, the impact of prior year contract losses with the Co-operative Bank in 2023 and lower volumes on a Telecommunications contract, which we expect to remain subdued in 2025.

Pension Solutions3 grew 6.7% reflecting volume growth across a number of clients, including PIC and Rothesay and the benefit from indexation.

Regulated Services3, including closed book Life & Pensions, saw revenues decline 25.8% as expected reflecting the one-off benefit from the prior year commercial settlement, the impact of contract exits and volume reductions as we resolve legacy issues and look to exit this business segment.

Financial guidance

For 2024, we expect to deliver a high-single digit adjusted revenue decline, after adjusting for disposals including Capita One, with improved margins driving an unchanged operating profit outlook. In 2025, we expect additional savings to offset the £16m of in-year incremental employers’ National Insurance Contributions costs (£20m on an annualised basis), and to deliver further margin improvement and modest profit growth.  The up to £50m additional cash restructuring costs to deliver the up to £250m upgraded cost savings target are expected to mainly impact 1H25 free cash flow.

Adolfo Hernandez, Chief Executive Officer, said: “As we head towards the end of my first year as CEO of Capita, I am very encouraged by the progress we have made against our strategic priorities, despite the impact of prior year headwinds being larger than originally expected.  Our focus is on becoming a better business, “getting smaller to get stronger and fitter to then grow” and being more selective in not pursuing and exiting existing lower margin contracts. Consequently, revenue is expected to be high single-digits lower in 2024. However, we are encouraged by the customer reaction to our suite of AI solutions developed with the hyperscalers which will help to drive profitable revenue momentum from 2025 onwards.

We have implemented a significant proportion of our efficiency programme, and today have outlined further savings which will result in further improvement to operating profit margins. We have made good progress with the managed for value businesses including the sale of Capita One in September and we look forward to 2025 with expectations of continued progress with positive and consistent free cash flow2 from the end of 2025.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Notes:

Adjusted revenue = revenue on a like-for-like basis, as outlined in the Group’s alternative performance measures note. Free cash flow, before the impact of business exits. Following a review of the Group’s offerings, moving forwards, Capita Experience will be reported as three segments – reflecting the different market sectors and end product offerings. These are, Contact Centre, Pension Solutions and Regulated Services which includes closed book Life & Pensions. We will provide full comparative 2023 data ahead of the Group’s year end results.

 

For more information, please contact:

Investor enquiriesHelen Parris, Director of Investor RelationsTel: 07720 169 269Email: IRteam@capita.co.uk

Stephanie Little, Deputy Head of Investor Relations Tel: 07541 622 838Email: IRteam@capita.co.uk

Media enquiriesCapita external communicationsTel: 0207 654 2399Email: media@capita.co.uk 

About Capita

Capita is a leading provider of business process services, driven by data, technology and people. Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita's 41,000 colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: http://www.capita.com

 

9 December 2024

Capita plc (“the Company”)

 

Notification and public disclosure of transactions by Person Discharging Managerial Responsibilities ("PDMR")

The information set out below is provided in accordance with the requirements of the UK Market Abuse Regulation

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

Sameer Vuyyuru

2

Reason for the notification

a)

Position/status

Chief AI & Product Officer (PDMR)

 

b)

Initial notification

/Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Capita plc

b)

LEI

CMIGEWPLHL4M7ZV0IZ88

4

Details of the transaction(s): section to be repeated for (i) each type of instrument;

(ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of 2 1/15p each

 

 

 

GB00B23K0M20

b)

Nature of the transaction

Grant of conditional share awards (Buy-out share awards A and B) over Capita ordinary shares to compensate Sameer Vuyyuru for the forfeiture of incentive arrangements held with his previous employer. The awards will ordinarily be forfeit in the event of cessation employment prior to the vesting date. New issue and treasury shares cannot be used in connection with Award B.

c)

Price(s) and volume(s)

 

Price

Volume Vesting date

 

£Nil

3,291,400 5 April 2025

Award A

£Nil

   427,548 5 April 2025

Award B

d)

Aggregated information

-  Aggregated volume

-  Price

 

3,718,948

£Nil

e)

Date of the transaction

6 December 2024

f)

Place of the transaction

Outside of a trading venue

 

For more information, please contact:

Investor enquiriesHelen Parris, Director of Investor RelationsTel: 07720 169 269Email: IRteam@capita.co.uk

Stephanie LittleDeputy Head of Investor Relations Tel: 07541 622838Email: IRteam@capita.co.uk

Media enquiriesCapita external communicationsTel: 0207 654 2399Email: media@capita.co.uk 

Notes to editors:

Every day our 43,000 colleagues help millions of people, by delivering innovative, digitally enabled solutions to transform and simplify the connections between government and citizens, businesses and customers. We partner with our clients and provide the insight and technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate across two divisions – Capita Public Service and Capita Experience – in the UK, Europe, India and South Africa. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: http://www.capita.com

 

 

 

2 December 2024

 

Capita plc

 

(the "Company")

 

Voting Rights and Capital

 

Notification of alteration to total voting rights in accordance with the FCA's Disclosure Guidance and Transparency Rules provision 5.6.1R.

 

The Company advises that its capital consists of 1,701,273,523 ordinary shares of 2 1/15p each, as at 30 November 2024. The voting rights of these shares are identical with each share carrying the right to one vote. The Company currently holds no ordinary shares in Treasury. Therefore, the total number of voting rights in Capita plc is 1,701,273,523.

 

The above figure, 1,701,273,523 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, Capita plc under the FCA's Disclosure Guidance and Transparency Rules.

 

In addition, the above figure includes 7,381,828 shares currently held by the Capita Employee Benefit Trust and therefore excluded from the Company's EPS calculation.

 

Name and signature of duly authorised officer of issuer responsible for making notification:

 

Claire Denton, Company Secretary, 020 7799 1525

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

 

 This notification is made in accordance with the requirements of the UK Market Abuse Regulation.

 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

Richard Holroyd

 

2

Reason for the notification

a)

Position/status

Chief Executive Officer, Capita Public Service

b)

Initial notification

/Amendment

Initial notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Capita plc

b)

LEI

CMIGEWPLHL4M7ZV0IZ88

4

Details of the transaction(s): section to be repeated for (i) each type of instrument;

(ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

Identification code

Ordinary shares of 2 1/15p each

 

 

GB00B23K0M20

b)

Nature of the transaction

Market Purchase of Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c)

Price(s) and volume(s)

Price(s)

Volume(s)

£0. 16772

177,902

 

 

d)

Aggregated information

-  Aggregated volume   -  Price

 

177,902 Ordinary shares

 

£0.16772

e)

Date of the transaction

 

19 November 2024

 

f)

Place of the transactions

London Stock Exchange

 

18 November 2024

Capita plc

Registered Office Address Change

Capita plc announces that it has changed its registered office address to First Floor, 2 Kingdom Street, Paddington, London, W2 6BD with effect from today, 18 November 2024.

In line with Capita’s hybrid and flexible working model this smaller office space will provide the Group with cost savings as we continue our previously announced cost reduction programme.

 

Investor enquiries

Helen Parris, Director of Investor RelationsTel: 07720 169 269Email: IRteam@capita.co.uk

Stephanie Little, Deputy Head of Investor Relations Tel: 07541 622 838Email: IRteam@capita.co.uk

 

Media enquiries

Capita external communicationsTel: 020 7654 2399Email: media@capita.co.uk 

 

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s 41,000 colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.