Capita secures £1bn in H1 contract wins as adjusted revenue rises
The firm plans to boost AI adoption and “agentification” across client and internal operations
Capita has reported mixed H1 results following a year marked by a series of new and extended contracts alongside business disposals.
Adjusted H1 revenue rose 1.6 per cent to £906.4m as the organisation secured almost £1bn in contract wins during the period.
The group reported revenue from continuing operations of £948.3m for the six months ended 30 June, down 1.3 per cent from the year prior.
Adjusted revenue growth was driven by a 24.7 per cent increase in Pension Solutions and a 2.4 per cent rise in Public Service, partially offset by declines in Regulated Services as the organisation continued to exit the business and a marginal fall in its retained Contact Centre operations.
On the other hand, adjusted operating profit dropped 31.6 per cent, primarily due to additional costs associated with the Civil Service Pension Scheme contract, although this was partly offset by savings from the group’s 2025 cost reduction programme.
Last month, the group said it expected issues surrounding its Civil Service Pension Scheme contract to impact adjusted operating profit by between £25m and £40m in 2026.
Adjusted EBITDA dipped 19.5 per cent to £59.5m, while reported EBITDA rose 15 per cent to £56.7m.
“We have made demonstrable progress in the first half of the year as we continue to transform Capita into an AI-enabled business services partner,” said CEO Adolfo Hernandez.
Contract wins and AI drive momentum
Capita secured £998m in total contract value during H1, 15 per cent ahead of the prior year and its strongest Public Service contract performance since 2021.
Major wins included the Synergy Business Process Services contract, the Army Collective Training Service and a Pension Solutions renewal.
The company also made a strong start to H2 after securing a £425m renewal with Transport for London (TfL).
The firm has secured several new and extended contracts over the past 12 months with organisations including Staffordshire County Council, Emovis Dartford, the BBC, Kent County Council, an existing UK client, a European telecom provider, Central London Community Healthcare NHS Trust, four Irish brands, a UK financial services provider, four UK councils, TfL and ScottishPower.
“We secured almost £1bn of contract wins, while continuing to invest in our people and AI capabilities,” added Hernandez.
“The progress we have made across our strategic priorities gives us confidence that we are building a stronger, more focused business for the future.”
Capita also recently completed the disposal of its private sector contact centre business to simplify operations while creating opportunities for cost savings and margin improvement.
Last October, it completed the sale of the assets of mortgage servicing business Western Mortgage Services Limited (WMSL) to Topaz Finance Limited.
Moving forward, Capita said its priorities for H2 include accelerating AI adoption and “agentification” across client and internal operations, simplifying the business following the contact centre disposal and converting its pipeline into revenue momentum.