Capita said in an AGM trading statement that adjusted Group revenue for the four months to 30 April rose 2.9% year-on-year, in line with expectations, and that the sale of its private sector contact centre business to Inspirit is expected to complete ahead of the H1 results.
Capita Public Service, which accounts for 81% of Group revenue, grew 5.8% aided by phasing and higher volumes on Central Government contracts and a one-off higher-volume benefit in Northern Ireland that more than offset prior-year contract handbacks.
Pension Solutions, 12% of Group revenue, delivered 23.4% growth reflecting the annualised impact of the Civil Service Pension Scheme contract and higher volumes from the Teachers’ Pension Scheme, while the retained contact centre business (7% of Group revenue) fell 7.0% and Regulated Services revenue declined 91.4% to £2m after the non-repeat of a £19m one-off benefit.
The group highlighted strategic progress including the launch of Storefront on AWS Marketplace as part of its aim to be the first AI-led business process outsourcer and cited a council pilot using AWS Customer Connect AI voice agents that, on testing to date, could automate up to 95% of routine enquiries and increase agent productivity by up to 35%.
Total contract value won in the four months exceeded £750m, up 20% year-on-year, and Capita reiterated full-year expectations of low-to-mid single-digit revenue growth in Capita Public Service, mid‑teen growth in Pension Solutions, a decline in Regulated Services and positive free cash flow, before the impact of business exits, in 2026.
"We expect the sale to complete ahead of the H1 results in early August," Adolfo Hernandez, Chief Executive Officer, said.
Capita plans to hold an investor update after the summer once the contact centre disposal has completed and will announce H1 results on 4 August.
