REG-Capita PLC: Army Recruitment Contract Extension

CapitaAnnouncement

11/12/2020 12:20

11 December 2020

Capita plc

Capita secures Army recruitment contract extension

Capita plc (‘Capita’) today announces it has been awarded a contract
extension with the Ministry of Defence (MoD) to continue to deliver the
recruitment service for the British Army.

The two-year contract extension is worth £140m and will start in March 2022,
when the current 10-year contract was due to end. Under the original contract
the MoD had the option of extending Capita’s contract, which the company has
now successfully secured.

Capita works in partnership with the Army as the Recruiting Partnering Project
(RPP) to attract, source and select officers and soldiers. Under the contract,
Capita will deliver technology and digital improvements to the recruiting
systems and processes, as well as continuing to provide the existing
recruitment services.

In particular, the software that underpins the end-to-end recruiting service
for Army personnel, the Defence Recruiting System, will be migrated onto the
Azure Cloud to provide a better candidate experience, faster response times
and enhanced functionality.

Other service improvements and technology advancements include investment in
robotic process automation, artificial intelligence, improved data and
analytics, and digital technology, including information chat bots and
digitalised medical records.

RPP successfully achieved 100% of the 2019/20 recruiting year target for
regular soldiers ready to train, and regular direct entry officers; at the
same time, reserves recruitment achieved 95% of the annual target, the best
performance since the contract began. Applications to join the Army are at a
five-year high and the conversion rate of people applying and beginning
training is up by a fifth from 2012.
 

Capita expects that maintaining these high levels of service performance over
the extension will ensure that the recent recovery in the contract’s
profitability and cash flow is sustained.  
 

Jon Lewis, Capita’s chief executive officer, said: “We are delighted that
the British Army has chosen to extend our recruitment contract.

“This marks another important contract renewal for Capita this year, as we
continue to transform the business.

“The award of this extension is testament to the trust and strong,
partnering relationship we have with the Army and the Ministry of Defence, and
to the major turnaround of our service delivery.

 “We look forward to building yet further on our partnership with the Army
as we continue to innovate and ensure that the service has access to the
skills it needs.”

Lieutenant General Tyrone Urch, Commander Home Command, said: “Thanks to the
British

Army’s strong partnership with Capita, applications to join the Army hit a
five-year high this year.

“The conversion rate of applicants to recruits is up by a fifth from 2012
and we’ve achieved 100% of the target of soldiers being recruited, ready to
train.

“We are committed to attracting a talented, bright and diverse cohort into
the Army, and we look forward to continuing to work with Capita to further
strengthen our excellent recruitment programme over the coming months.”

Notes to editors:

The total IFRS 15 transaction price (order book) for the two-year contract
extension is £140m.

For more information, please contact:

Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk 
 

About Capita

Capita is a consulting, transformation and digital services business. Every
day our 61,000 colleagues help millions of people, by delivering innovative
solutions to transform and simplify the connections between businesses and
customers, governments and citizens. We partner with clients and provide the
insight and cutting-edge technologies that give time back, allowing them to
focus on what they do best and making people’s lives easier and simpler. We
operate in the UK, Europe, India and South Africa – and across six
divisions: Customer Management; Government Services; People Solutions;
Software; Specialist Services; and Technology Solutions. Capita is quoted on
the London Stock Exchange (CPI.L). Further information can be found at:
http://www.capita.com

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