Capita: Trading Statement

CapitaAnnouncement

Today 07:00

18 May 2026

Capita plc

Trading for the 4 months to 30 April 2026 – good progress across all strategic
priorities

Ahead of our Annual General Meeting today, we are providing an update on
trading for the 4 months to 30 April 2026.

Adolfo Hernandez, Chief Executive Officer, Capita said:

“We have made positive progress in the first four months of the year, with
adjusted Group revenue 1  up 2.9% compared to the same period last year, in
line with expectations. We have had positive and deep engagement with
Inspirit, the purchaser of the private sector contact centre business and
expect the sale to complete ahead of the H1 results in early August.

We are now planning to hold our investor update after the summer once the
contact centre disposal has completed to ensure the separation is fully
underway. We continue to make excellent progress against our other strategic
objectives to deliver a better Capita, with innovation both internally and for
clients, including the launch of Storefront, providing customers with access
to the company’s AI, data and digital services via AWS Marketplace.

We remain fully focussed on delivering the administration of the Civil Service
Pension Scheme under the project improvement plan with the Cabinet Office.”

Financial update

The Group’s adjusted revenue 1  performance, was in line with expectations
with growth of 2.9% compared to the same period in 2025, benefitting from
phasing of some contracts, particularly in Capita Public Service.

Capita Public Service (81% of Group revenue) grew 5.8% with revenue
benefitting from increased volumes on contracts in Central Government and the
one-off benefit from higher volumes on a contract in Northern Ireland. These
more than offset the impact of prior year contract hand backs which will
continue through 2026.

Retained Contact Centre business performance (7% of Group revenue) reduced
7.0% due to some reductions in volumes and project work.

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 contract which Capita was advised in
2023 would be transferred to another provider. We expect to transition to the
new provider within the next 12 months.

Regulated Services, which now only comprises our Mortgage Software business,
had revenue of just £2m, a reduction of 91.4%, due to the non-repeat of a £19m
one-off benefit from a contract exit in the prior year.

Strategic progress

Across 2026, we have continued with our transformation to become the first
AI-led business process outsourcer (BPO). This year we became the first
European BPO to launch Storefront on AWS Marketplace, providing customers with
access to the company’s AI, data and digital services via AWS Marketplace
Storefront so customers can easily find and procure Capita solutions, reducing
procurement complexity.

We are increasing the level of technology underpin in our contract delivery.
On one contract with a large local council using AWS Customer Connect AI voice
agents, based on testing to date, we expect to see up to 95% of routine
enquiries automated and up to 35% increases in agent productivity, allowing
our colleagues to focus on complex cases.

In the Pension Solutions business, we are focused on resolving the known
challenges on the Civil Service Pension Scheme. We have a plan with the
Cabinet Office and remain committed to delivering the plan, in spite of the
challenging environment and nature of the backlog inherited. We continue to
focus on improving the call centre and back-office operations, resolving
urgent cases as well as improving wider case resolution times.

In Capita Public Service operational performance continues to be strong with
average KPI performance over 90% in the first four months of 2026.

Total contract value won by the Group in the first four months of 2026 was
over £750m, up 20% from the same period in the prior year. Contracts won or
extended included the Synergy Business Process Services contract in Capita
Public Service, a material new scope for the Group, and a material renewal in
our Pension Solutions business.

Outlook

For the full year, we continue to expect low to mid-single digit revenue
growth in Capita Public Service and expect mid-teen revenue growth in our
Pension Solutions business. We continue to expect a decline in Regulated
Services driven by non-repeat of one-offs in the Mortgage Software business.

On 26 March 2026, we announced the sale of our private sector contact centre
business; we continue to make good progress on this. The business continues to
perform in line with expectations for all metrics and saw revenue decline by
14.6%, reflecting the continued impact of known losses in the business.

The sale is an important milestone for the Group and will allow Capita to
significantly streamline its operations and investments. We are making good
progress with the transaction, regulatory submissions by the buyer have been
made as planned and we are awaiting those approvals.

The sale will accelerate our margin expansion and free cash flow generation,
while allowing us to focus on leveraging current capabilities to further
increase growth. The transaction will be value accretive and will unlock a
material overhead reduction as we remove further complexity from the Group.

As previously announced, we are taking actions to deliver annualised savings
of c.£40m, across 2026 and 2027. The anticipated associated cash cost to
achieve these savings is £20m. We continue to expect the Group to deliver
positive free cash flow, before the impact of business exits, in 2026.

Capita’s H1 2026 results will be announced on 4 August 2026.

Notes:

1. Adjusted revenue = revenue on a like-for-like basis, excluding the impact
of the recently announced sale of the private sector contact centre business.

For more information, please contact:

Investor enquiries:

Helen Parris
Director of Investor Relations
Email: IRteam@capita.co.uk

Stephanie Little
Head of Investor Relations
Email: IRteam@capita.co.uk

Media enquiries
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 supporting 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