Hmmmm this will not set the share alight.5 Aug 2025 07:09
Solid progress against strategic objectives; full year expectations unchanged
Adolfo Hernandez, Chief Executive Officer, said:
“We are pleased to see good signs of momentum in the ongoing transformation of Capita, with a particularly strong performance in our Public Sector business, underscoring our important role in bringing innovation and fresh thinking to the challenge of delivering efficient public services.
"The total value of contracts won by the Group increased by 17% compared with the first half of last year, with increased interest from customers in our AI-driven solutions that bodes well for future growth and we have more than £4.4bn of higher technology opportunities in the Group pipeline.
"Meanwhile, our focus on cost discipline continues to help Capita adapt to some of the challenges we have seen in the Contact Centre business and we are on track to deliver £250m of cost savings by December 2025 and to deliver positive free cash flow from the end of 2025.
"The operational performance and momentum we have seen in the first half of the year gives confidence in our delivery of the second half of the year and our full year outlook remains unchanged."
Growing momentum against strategic priorities to build a Better Capita
Actions taken to deliver £190m annualised cost savings at 30 June 2025, which increased to £205m as at 31 July 2025
On track to deliver previously announced £250m target by December 2025
Cash cost to deliver savings in H1 2025 of £21.5m, reflecting slower than expected phasing of in year savings in some areas
Productivity benefits seen throughout organisation from our improved technology foundations, products and innovation
Recently launched Capita AI Catalyst Lab, driving efficiencies and higher quality customer solutions
First use of 'Agents', with Agentforce AI, powered by Salesforce, to drive volume recruitment
10 point improvement in Group employee net promoter score
H1 2025 Financial results
Adjusted revenue1 decreased by 4% to £1,154.8m (H1 2024: £1,198.6m):
Growth in Capita Public Service (62% of Group revenue) of 4% from contract wins and expansions of existing scopes
Revenue reduction in Contact Centre of 20% (24% of Group revenue) from the ongoing impact of previously announced contract losses and subdued volumes in the Telecommunications vertical
Revenue broadly in line with the prior period in Pension Solutions at (0.3)% (7% of Group revenue)
1.1% reduction in Regulated Services (7% of Group revenue) due to previously agreed contract hand backs, offset by the one-off benefit from a contract termination in the Mortgage Software business
Adjusted operating profit1 decreased 22% to £42.6m reflecting revenue reductions in Contact Centre and non-repeat of one-offs and contract hand backs in Regulated Services, reinvestment in the Group and the timing of the Group's pay award and increase in National I