Full Year Results 202510 Mar 2026 07:04
Capita plc CEO Adolfo Hernandez said:
"2025 was a pivotal year for Capita as we progressed our transformation to become the first AI-led business process outsourcer. We are building momentum as a leaner, more agile business and are well positioned to capture the market opportunity as customers increasingly look to AI and technology to improve productivity and efficiency.
“We have made strong progress across our Better Capita strategy, with Better Technology at the centre. We provide knowledge and experience of our customers Business Process Operating Systems that integrate AI into complex, real-world workflows that require accountability, security, and human oversight. As our £19.8bn pipeline shows, demand for our capabilities, AI solutions and digital delivery continues to grow, this year around two thirds of the Group's revenue was AI-enabled and we further improved customer satisfaction, with cNPS rising to +31, the highest level since we began measuring it in 2018.
“Alongside this, we delivered a major milestone by delivering £250m of annualised cost savings, strengthening margins and enabling reinvestment in our product, data and cyber capabilities. We also resolved several significant legacy challenges to simplify the business. As a consequence of our disciplined action, we saw adjusted operating profit increase 34% to £114m and the operating margin increase 140bps to 5.2%.
“With clear priorities for 2026, we remain focused on disciplined execution and are confident in our ability to drive further progress in Capita’s transformation.”
2025 Financial Results
Adjusted revenue1 declined 1.2% to £2.2bn (2024: 6.8% decline), with strong performances in Public Service and Pension Solutions more than offset by revenue decreases in Contact Centre
Public Service division (66% of Group adjusted revenue1) delivered its highest adjusted revenue1 growth in the last five years increasing by 4.5%, helped by contract wins and expansion of existing scopes
Revenue reduction in Contact Centre of 17.5% (24% of Group adjusted revenue1) from ongoing impact of previously announced contract losses and volume reductions in the telecommunications vertical
Pension Solutions adjusted revenue1 increased 4.5% (9% of Group adjusted revenue1), as we saw the benefit from indexation on existing contracts and go-live on new contracts
Adjusted operating profit1 increased 34.2% to £113.5m (2024: £84.6m), reflecting the benefit from the cost reduction programme which more than offset the Group’s revenue reduction
The Group's adjusted operating margin improved to 5.2% from 3.8% in 2024. Strong performances in both Public Service and Pension Solutions, delivering operating margins above the Group's medium term target
Reported operating loss of £129.6m (2024 loss: £9.9m) reflecting the £56.1m cost associated with our successful cost reduction programme and non-cash goodwill impairment of £73.7m recognised in the Contact Centre business
Free cash outflow, e