Trading Statement

CapitaAnnouncement

Today 07:02

12 December 2025

Trading update for the 11 months to 30 November 2025

Capita plc (Capita)

We are today providing an update on trading in the 11 months to 30 November.

The Group’s adjusted revenue performance was broadly consistent with the first
half performance. Capita Public Service (63% of Group revenue) grew 4.0% with
revenue growth in the second half moderating slightly, compared to the first
half, reflecting some client driven revenue delays. Contact Centre (23% of
Group revenue) adjusted revenue declined by 18.3% reflecting the impact of
previously announced contract losses and volume reductions, particularly in
the telecommunications vertical.

Pension Solutions (8% of Group revenue) delivered improved growth in the
second half of the year, as expected, with a year-to-date growth of 1.5%.
Regulated Services (6% of Group revenue) reduced 14.3% reflecting the agreed
contract hand backs in this business unit as we finalise our planned exit from
this sector. This morning, we have separately announced the transition
agreement for the final two contracts, with the remaining customer, in the
closed book Life & Pensions business 1 .

From a full year perspective, we now expect growth in Capita Public Service to
be slightly below mid single digit, a high teen digit reduction in Contact
Centre and low single digit growth in our Pension Solutions business. Our
guidance on margin improvement, free cash flow (including the £14m previously
announced Information Commissioner’s Office (ICO) settlement) and debt,
together with our medium-term targets, remain unchanged.

We have achieved significant progress against the strategic priorities we laid
out at the start of the year as we build a Better Capita:

* Delivered our targeted £250m of annualised cost savings, enhancing cost
  competitiveness across the organisation, enabled and supported by our AI
  investment and strategy;
* Launched our AI Catalyst Stack operationalising AI at scale and underpinning
  our ambition to become the first AI-enabled business process outsourcer;
* Agreed a settlement with the ICO relating to the March 2023 cyber incident;
* Signed the final transition agreement for the remaining closed book Life &
  Pensions contracts.

In the second half of 2025, we’ve seen a significant increase in the Group’s
unweighted contract pipeline, with total contract opportunities across all
divisions now valued at £16.5bn, up 41% from the half year. This represents
the highest level the Group’s unweighted pipeline has been for several years.
Of this, £3.5bn relates to opportunities which have a strong technology
component.

Our new AI&PO organisation launched an AI Catalyst Lab, focussing on 12
initial areas spanning customer service, knowledge management, training, and
operational support. Agents are now embedded across Microsoft and Salesforce
platforms with more than 130 agents now active, and since its launch earlier
this year, the Catalyst Lab has received more than 550 opportunities and use
cases, helping the business prioritise and shape future innovation. 

In recent months, we also launched our AI Catalyst Stack for customers which
leverages our operational expertise and hyperscaler partnerships to embed AI
in mission-critical services, driving faster transformation, reducing costs,
and improving outcomes for citizens and customers.

Adolfo Hernandez, Chief Executive Officer, Capita said:

“We are very pleased to have announced today an agreement for the transition
of the remaining two legacy evergreen closed book Life & Pensions contracts to
Royal London. This was a key priority for 2025 and a key element of our
‘manage for value’ strategy.

“I am also pleased to report significant progress against our strategic
priorities, including delivering £250m of annualised cost savings, the
continued strength from our AI Catalyst Lab and the recent launch of the
Capita AI Catalyst Stack which operationalises AI at scale.

“While some challenges remain, we are making good progress and continue to
work hard to build a Better Capita.”

Notes:

1. The closed book Life & Pensions business has now met the criteria to be
treated as a business exit and from the year end its results will be excluded
from the Group’s adjusted results. To enable like-for-like comparison of
adjusted results, the comparatives will be re-presented to also exclude the
closed book Life & Pensions business. The numbers presented above include the
performance of the closed book Life & Pensions business.
For more information, please contact:

Investor enquiries
Helen Parris, Director of Investor Relations
Tel: 07720 169 269
Email: IRteam@capita.co.uk

Stephanie Little, Head of Investor Relations
Tel: 07541 622 838
Email: IRteam@capita.co.uk

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

About Capita plc

Capita is a modern outsourcer, helping clients across the public and private
sectors run complex business processes more efficiently, creating better
consumer experiences. Operating across eight countries, Capita’s 34,000
colleagues support primarily UK and European clients with people-based
services underpinned by market-leading technology. We play an integral role in
society - our work matters to the lives of the millions of people who rely on
us every day