Capita
CPI · Main Market · Industrial Goods and Services · mcap £255m · 235.0p
Capita runs outsourced administration, customer service and technology contracts, mainly for UK government and large companies. It handles pensions, training, IT and contact centres.
The case for
- The £250m cost-saving target was met by December 2025, and 2025 adjusted operating profit rose 34% to £113.5m. 12 Dec 2025 10 Mar 2026
- Contract wins are strong: £2.06bn in 2025 and £998m in H1 2026, with a bigger pipeline. 10 Mar 2026 9 Jul 2026
- The contact centre sale removes the weakest division and is expected to bring an extra £40m of savings and about 2 points of margin by 2027. 26 Mar 2026 4 Aug 2026
- Large investors including Oasis (15%) hold significant stakes, and Oasis has a board seat. 18 May 2026
The case against
- Civil Service Pension Scheme problems will cut 2026 profit by £25m-£40m and are under NAO review. 9 Jul 2026 2 Oct 2026
- Positive free cash flow has slipped to 2027, and net debt rose to £500m at H1 2026. 9 Jul 2026 4 Aug 2026
- Revenue shrank for years, 8% in 2024 and contact centre revenue fell about 20%. 5 Mar 2025 5 Aug 2025
- The Life & Pensions exit will cost about £20m a year in cash for five years from 2026. 12 Dec 2025
- Smart DCC faced Ofgem cost disallowances and a £200k fine. 11 Mar 2026 8 Jul 2026
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.