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.
| Target | Promise | Said | Status |
|---|---|---|---|
| 2024 | |||
| Q1 2024 | Deliver £60m annualised cost savings from Q1 2024 | 21 Nov 2023 | ✓ Kept |
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Also stated 6 Mar 2024
Result
Folded into the £160m programme, with £100m delivered by H1 2024. “We are on track to deliver on our cost reduction programme, having taken action to deliver £100m out of the £160m of annualised cost reductions we expect to achieve by June 2025.”2 Aug 2024 · Half-year Results |
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| 2024-12 | 2024 revenue broadly in line with 2023 | 6 Mar 2024 | ✗ Missed |
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Also stated 21 May 2024
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| 2024-12 | Launch nine new customer service bundled offerings during 2024 | 13 Jun 2024 | … In progress |
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Status so far
Not yet due. |
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| 31 Dec 2024 | Minimal net financial debt at 31 December 2024 | 5 Sep 2024 | ✓ Kept |
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Result
Net financial debt fell to £66.5m, below 1x EBITDA. “Net financial debt (pre-IFRS 16) of £66.5m (2023: £182.1m), with net financial debt/adjusted EBITDA1 (both pre-IFRS 16) ratio of 0.5x”5 Mar 2025 · Final Results |
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| 2025 | |||
| 2025-12 | Achieve positive free cash flow from end of 2025 | 14 Dec 2023 | ✗ Missed · target changed |
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Result
By July 2026 positive free cash flow before business exits was pushed to 2027. “We now expect the Group to deliver positive free cash flow, before the impact of business exits, in 2027”9 Jul 2026 · Trading and Civil Service Pension Scheme Contract Update “Expect the Group to deliver positive free cash flow, excluding business exits, in 2027”4 Aug 2026 · Half-year Results |
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| 2025 | No pension deficit contributions from 2025 | 14 Dec 2023 | … In progress |
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Status so far
Not yet due. |
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| 2025-06 | Deliver £160m annualised cost savings by June 2025 | 6 Mar 2024 | ✗ Missed · target changed |
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Also stated 13 Jun 2024
Result
Target raised to up to £250m by December 2025 and was met. “enabling us to increase our cost reduction target from £160m to up to £250m”17 Dec 2024 · Trading and Operating Update “Delivered our targeted £250m of annualised cost savings, enhancing cost competitiveness across the organisation, enabled and supported by our AI investment and strategy;”12 Dec 2025 · Trading Statement |
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| 2025-12 | Deliver £250m annualised cost savings by December 2025 | 17 Dec 2024 | ✓ Kept |
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Also stated 5 Aug 2025
Result
£250m of annualised savings reported delivered in December 2025. “Delivered our targeted £250m of annualised cost savings, enhancing cost competitiveness across the organisation, enabled and supported by our AI investment and strategy;”12 Dec 2025 · Trading Statement |
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| 2025-12 | 2025 revenue broadly flat with improved operating margin | 17 Jun 2025 | ✓ Kept |
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Also stated 2 Jul 2025
Result
Revenue fell 1.2% to £2.2bn and margin rose to 5.2% from 3.8%. “The Group's adjusted operating margin improved to 5.2% from 3.8% in 2024.”10 Mar 2026 · Final Results |
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| 2026 | |||
| 4 Aug 2026 | Complete contact centre sale before H1 results in early August 2026 | 18 May 2026 | ✓ Kept |
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Result
Sale completed on 3 August 2026. 3 Aug 2026 · Disposal: Completion of private sector contact centre disposal |
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| Today · 10 Oct 2026 | |||
| 4 Nov 2026 | Set out refreshed targets at a Capital Markets Event on 4 November 2026 | 4 Aug 2026 | … In progress |
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Status so far
Not yet due. |
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| 2026-12 | Low single digit adjusted revenue growth in 2026 | 10 Mar 2026 | … In progress |
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Status so far
Not yet due. |
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| 2026-12 | 2026 free cash flow of £20m-£40m excluding exits, 70%-80% cash conversion | 10 Mar 2026 | ✗ Missed · target changed |
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Result
In July 2026 positive free cash flow was pushed to 2027 after pension scheme issues. “We now expect the Group to deliver positive free cash flow, before the impact of business exits, in 2027”9 Jul 2026 · Trading and Civil Service Pension Scheme Contract Update “The issues with the Civil Service Pension Scheme contract and impact to the wider Pension Solutions divisions, post mitigating actions across the Group, are now expected to impact adjusted operating profit in 2026 by £25m – £40m with a £35m – £50m free cash flow impact”9 Jul 2026 · Trading and Civil Service Pension Scheme Contract Update |
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| 2026-12 | Positive free cash flow before business exits in 2026 | 26 Mar 2026 | ✗ Missed · target changed |
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Result
Pushed back to 2027 in July 2026. “We now expect the Group to deliver positive free cash flow, before the impact of business exits, in 2027”9 Jul 2026 · Trading and Civil Service Pension Scheme Contract Update “Expect the Group to deliver positive free cash flow, excluding business exits, in 2027”4 Aug 2026 · Half-year Results |
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| 2027 | |||
| 2027-12 | Deliver c.£40m annualised savings across 2026 and 2027 | 26 Mar 2026 | … In progress |
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Also stated 9 Jul 2026
Status so far
Not yet due. |
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| 2027 | About 200bps adjusted operating margin improvement by 2027 | 26 Mar 2026 | … In progress |
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“The Group expects to deliver approximately 200bps improvement in adjusted operating margin by 2027”
Status so far
Not yet due. |
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