Capita (LSE:CPI) has secured a five-year extension to its two Transport for London (TfL) Road User Charging contracts, worth a combined £424.6m over the initial term.
The business services group, which combines technology, data and AI with operational expertise for public and private sector clients, has run the contracts since 2016.
The extensions run from October 2026 to September 2031, with options to extend a further two years to September 2033.
They cover TfL's Business Operations and Enforcement Operations contracts, which support London's Congestion Charge, Ultra Low Emission Zone, Low Emission Zone and Tunnels User Charging schemes.
Capita acts as systems and service integrator and operator across technology, operations, customer services and supply chain functions for the schemes.
Gavin Dunkley, managing director of Capita's Public Transport Sector, said the extension "reflects the contribution of many people across Capita and our supply chain partners who have successfully delivered and transformed these services over a number of years".
The £424.6m figure represents the combined IFRS 15 transaction price, or order book value, for the initial five-year term.
The contracts take effect from October, extending a relationship with TfL that has run for a decade.
News Intelligence what this means for the company
Capita has secured a five-year extension to its Transport for London Road User Charging contracts worth £424.6m (IFRS 15 transaction price), running from October 2026 to September 2031 with options to extend two further years. The win extends a decade-long relationship and covers the Congestion Charge, Ultra Low Emission Zone, Low Emission Zone and Tunnels User Charging schemes. In context of Capita's H1 2026 contract wins totalling £998m, this TfL extension represents 43% of that half-year haul, anchoring it as a material win—but the company faces headwinds: profit guidance was cut by £25m–£40m due to Civil Service Pension Scheme contract failures, and execution risk on large public-sector contracts remains live.
The TfL extension validates Capita's ability to retain and grow long-term public-sector relationships, but does not offset the operational and financial damage from the Pension Scheme contract. Revenue visibility improves, yet profitability remains under pressure from legacy contract underperformance.
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