REG-Capita PLC: Contracts Extension

CapitaAnnouncement

10/08/2020 07:05

10 August 2020

Capita contracts for the Congestion Charge, Low Emission Zone and the Ultra
Low Emission Zone extended by TfL

Capita plc (Capita) today announces it has secured an extension to its
contracts with Transport for London (TfL) to continue to manage London’s
Congestion Charge, Low Emission Zone (LEZ) and Ultra Low Emission Zone (ULEZ).

The deal is worth £355m, comprising an extension to Capita’s work on the
existing schemes, from October 2021 to October 2026, and new work associated
with the expansion of ULEZ, Direct Vision Standards (DVS), LEZ and their
operations to October 2026.

The contracts will see Capita delivering an expanded scope of work, with the
company providing further services on TfL’s behalf which include:
*
Managing the expanded ULEZ, scheduled to be operational from October 2021,
which will increase from the Central London ULEZ to the entire area within
London’s North Circular and South Circular roads.
*
Running the registration and monitoring service for the new DVS scheme for
heavy goods vehicles (HGVs). This is an initiative to measure how safely an
HGV driver can see through their cab windows and will prevent unsafe vehicles
from using London’s roads, with the goal of reducing the number of
pedestrian, cyclist and motorcyclist injuries and fatalities.
*
Implementing further London-wide changes to the LEZ’s standards for HGVs and
buses.

The contracts will involve transforming and further improving the efficiency
of the ways TfL customers can address their queries about the services,
through the introduction of digital technologies.

Under the contracts, Capita is employing a number of its digital
transformation capabilities. This includes migrating the existing technology
– used to operate the Congestion Charge, LEZ and ULEZ, and which processes
an average of 1.5 million roadside images a day – to the Cloud. This is
designed to ensure that the operations are more flexible and should enable the
company to scale the service quickly to incorporate the ULEZ expansion being
delivered on behalf of TfL.

Capita anticipates recruiting and training an additional 900 new staff to
deliver the expanded service. The majority of these employees will have the
capability to work remotely and will be encouraged to work from home.

Jon Lewis, Capita’s chief executive officer, said: “We are delighted to be
continuing to partner with Transport for London, working across Capita’s
divisions to manage and administer the Congestion Charge, LEZ and ULEZ.

“These new contracts will see us build on our existing partnership, which
has already seen us launch ULEZ on time and on budget, and will draw on our
track record of transformation and digitally enabled services, as well as
adding value for our shareholders.

“Working with Transport for London, we will roll out new, expanded
programmes that reduce the effects of air pollution on Londoners and make the
streets safer for all road users and pedestrians.”

ULEZ and the Congestion Charge are a key part of the Mayor of London and
TfL’s strategy to reduce traffic and air pollution across the city. The
world's first ULEZ has already contributed to a reduction of 44 per cent in
roadside NO2 within its boundaries and 79 per cent of vehicles entering the
area meet its emission standards.

Helen Chapman, TfL’s Director of Licensing, Regulation and Charging, said:
“These projects are vital to cleaning up London’s toxic air, encouraging
people to make more sustainable travel choices and keeping people safe on the
capital’s roads. The expansion of the ULEZ to the North and South Circular
will be transformational, reducing road transport NOx emissions by around 30
per cent and improving air quality for millions of Londoners.

“We have extended Capita’s contracts to deliver these services over the
next five years and will continue to work with them to deliver value for
money, and to maintain and improve customer services.”

Notes to editors:

The total IFRS 15 transaction price (order book) is £355m for the extension
to the existing schemes and additional work, which will run until October
2026.

For more information please contact:

Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 020 7654 2220
Email: IRteam@capita.co.uk

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

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

ENDS



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