Capita

CPI · Main Market · Industrial Goods and Services · mcap £281m · 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.

Recent signals

Mixed 25 Sep 2026

Debt facilities extended, covenant loosened, extra financing added

Interest cover covenant cut to 3.0-3.5x from 4.0x; net debt rose to £499.7m. 25 Sep 2026 4 Aug 2026 22 Jul 2026

Negative 4 Aug 2026

Civil Service Pension Scheme problems cut profit and push positive free cash flow to 2027

2026 free cash flow guidance moved from positive to 2027; CSPS expected to cost £25-40m profit and £35-50m cash. 4 Aug 2026 9 Jul 2026

Mixed 3 Aug 2026

Disposal of private sector contact centre business for £1

Simplifies the group, with about 200bps margin improvement targeted by 2027 and £40m of savings. 3 Aug 2026 26 Mar 2026

Positive 23 Jun 2026

Oasis Management built stake to 15.21% and secured board seat

Oasis agreed to hold 10-20% and has a nominee director; it also entered a total return swap in June 2026. 23 Jun 2026 18 May 2026

Positive 29 May 2026

CEO, CFO and other executives bought shares on market in March 2026

Several executives bought shares after the FY25 results; CEO and CFO bought again in May using salary award proceeds. 29 May 2026 16 Mar 2026 11 Mar 2026

Capital actions

2026-09-25 debt refinancing · £30m – New Shawbrook facilities: £15m RCF and £15m term loan maturing September 2029 25 Sep 2026
2026-07-22 debt refinancing · $55m – Issued US private placement notes, £41m net of swaps, 7.54% coupon, three-year maturity 22 Jul 2026
2026-06 debt refinancing · £325m – Increased and extended RCF to June 2029 with two one-year extension options; interest cover covenant relaxed 4 Aug 2026
2026-03-26 disposal · £1 – Sale of private sector contact centre business to Inspirit Capital, up to £61.5m contingent consideration; completed 31 July 2026 26 Mar 2026
2025-03 debt refinancing · £94.2m – Issued US private placement notes across three tranches maturing 2028-2030 at 7.4% average interest 5 Mar 2025
2024-09-05 disposal · £180m – Completed sale of Capita One to MRI Software for net cash proceeds 5 Sep 2024

Risks & opportunities

Opportunities

Unweighted pipeline of about £24.4bn, up from £18.6bn since 2025-12 4 Aug 2026
AI agent adoption driving efficiency and productivity across client contracts since 2025-03 4 Aug 2026
Additional £40m annualised savings following the contact centre disposal since 2026-03 4 Aug 2026

Risks

Civil Service Pension Scheme backlog and service failures hitting profit and cash since 2026-03 2 Oct 2026
Retained underutilised properties carry c.£65m lease liability and c.£10m annual cost since 2026-08 4 Aug 2026
Ofgem scrutiny and cost disallowances on Smart DCC since 2025-07 8 Jul 2026
Suspended Public Service contract and Royal Mail pension scheme discussions unresolved since 2026-08 4 Aug 2026

As the company itself describes them.

Coming up

4 Nov 2026 Capital Market Event: refreshed strategy, medium-term targets, capital allocation
1 Sep 2026 Radhika Chadwick joins board as independent NED
Oct 2026 TfL Road User Charging extension starts (to Sep 2031)
2027 Target of positive free cash flow excluding business exits
Summer 2027 Synergy Business Process Services contract goes live
End 2027 Delivery of additional £40m annualised cost savings

From the company's own announcements · not investment advice

Company filings. Not investment advice.