Kelso5 Jun 2026 08:57
Alliance News) - Kelso Group Holdings PLC on Friday said it has bought shares in Capita PLC in recent weeks, as the London-based investor in UK listed companies backed the turnaround strategy of the outsourcing firm.
Kelso said it now holds 400,000 shares in Capita. They were bought at an average price of 312 pence per share, it said.
Capita shares quoted early Friday in London at 368.17p, up 0.7% on the day, making Kelso's holding worth GBP1.5 million. Capita has a market capitalisation of GBP440.4 million, meaning Kelso's stake is just below 1%.
Kelso said the Capita holding now accounts for 8% of its gross investments. Kelso has a market cap of GBP14.4 million. Its shares were down 9.7% to 2.80p early Friday.
Explaining its investment, Kelso said it thinks "Capita's turnaround strategy is gaining momentum". Capita is "seeing the benefits from simplifying operations, reducing its debt position, and divesting non-core assets.
"Kelso believes there remains further opportunities for potential disposals which could be value enhancing for shareholders."
At its annual general meeting last month, Capita said it is making "good progress" on the sale of its private sector contact centre business.
London-based outsourcing and business services company said adjusted revenue rose 2.9% on-year in the first four months of 2026, which it said was in line with expectations.
Kelso's disclosure of its holding Capita came as it provided a portfolio update for May. It said gross assets totalled GBP19.4 million at the end of the month, with net assets of GBP14.0 million, or 3.0 pence per share. This is up 35% since the start of 2026.
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