Insights & News page
Chair’s introduction
This has been an important year for Capita in its transformation, one in which we have focused relentlessly on execution and delivery. The Board and management team set out clear strategic priorities at the start of the year and I am pleased to report that we have made meaningful progress against each of them.
Our strategic themes; better technology, better delivery, better efficiencies and better company, which we outlined at the Group’s 2024 Capital Markets Day, continue to guide the Board and the Executive Team, ensuring that every initiative is aligned with the long-term vision for Capita.
We had a number of material developments this year, resolving some legacy challenges that Capita faced, and the Group has made significant progress in our aim to become the leading AI-enabled business process outsourcer (BPO), globally.
The Board and management team set out clear strategic priorities at the start of the year and I am pleased to report that we have made meaningful progress against each of them.
Chief Executive Officer’s review
2025 was a pivotal year for Capita as we progressed on our transformation journey to become the first AI-led business process outsourcer (BPO). I am excited about what we have achieved since I joined in 2024, and by the platform that we have created to execute our ambitions.
Our 2025 financial performance is improving across the majority of metrics and was broadly in line with our expectations. Group adjusted revenue was 1.2% lower than 2024, with revenue growth in Public Service and Pension Solutions more than offset by a 17.5% decline in Contact Centre driven by reduced volumes in the Telecommunications vertical and contract losses. We delivered a 36% increase in total contract value (TCV) won and strong growth in our unweighted sales pipeline.
Our cost saving initiatives and revenue mix have contributed to a 34.2% increase in adjusted operating profit and 140bps improvement in the adjusted operating margin to 5.2%. The Group’s free cash outflow, excluding business exits, was £54.0m, including £53.2m cash costs to achieve savings on the Group’s cost reduction programme and the £14m settlement with the ICO following the Group’s March 2023 cyber incident. This was a £56.9m improvement compared to 2024 as one-off cash outflows reduce as expected.
This is a time of tremendous market opportunity for Capita and our business is fundamentally in a much stronger position than a few years ago.
Better technology is at the centre of our transformation and I am proud of the pace of change and the capabilities we have built in this area.
Chief Financial Officer’s review
Adjusted revenue declined by 1.2% reflecting good growth in Public Service and the Pension Solutions business, offset by a 17.5% decline in the Contact Centre business. The 34.2% increase in adjusted operating profit is driven by improved contract performance in Public Service and the in-year benefit from the £250m cost reduction programme.
Cash generated from operations excluding business exits increased by £45.9m to £72.9m, reflecting the above improvement in operating cash flow excluding business exits and the reduction in pension deficit contributions, partly offset by an increase in cash costs to deliver the cost reduction programme, and an increase in the direct cash cost of the 2023 cyber incident, in particular the fine paid to the ICO and related legal fees. Free cash flow excluding business exits was an outflow of £54.0m (2024: outflow £110.9m), and includes £53.2m of cash costs to deliver the cost reduction programme (2024: £44.5m), and £13.6m net cash outflow in respect of the 2023 cyber incident (2024: £5.0m).
The improvement year on year primarily reflects the improvement in cash generated from operations excluding business exits, continued capital investment in our contract delivery with new technology solutions and cyber capabilities, lower net capital lease payments from the ongoing property portfolio rationalisation, and lower interest outflows.
Our performance this year reflects the progress we are making in strengthening the business – delivering improved adjusted profit and cash flow while continuing to simplify our operations and invest in the capabilities that will support sustainable growth.
Download the Capita plc Annual Report and Accounts 2025
2025 Financial highlights and leading indicators
5.2%
Adjusted operating margin
(2024: 3.8%)
£2,312.3m
Reported revenue
(2024: £2,421.6m)
£2,199.5m
Adjusted revenue
(2024: £2,225.7m)
(5.6%)
Reported operating margin
(2024: (0.4)%)
£(54.0)m
Free cash flow excluding business exits
(2024: £(110.9)m)
(144.13)p
Reported basic (loss)/earnings per share
(2024: 68.06p)
49.71p
Adjusted basic earnings per share
(2024: 1.60p)
£4.7m
Net cash flow from operating activities
(2024: £(25.2)m)
2025 Non-financial highlights and leading indicators
63%
Employee engagement index
(2024: 64%)
+31pts
Customer net promoter score (cNPS)
(2024: +28pts)
41/21%
Workforce diversity: ethnicity*
(2024: 38/19%)
92.8%
Total shareholder return (TSR)
(2024: 36.3%)
47/52/1%
Workforce diversity: gender F/M/other and did not disclose
(2024: 51/48/1)
193,413
CO₂ emissions (market based) Scope 1, 2 and 3 (tCO₂e)
(2024: 201,691)
55%
Reduction in carbon footprint (market based)
(2024: 53%)
55%
Reduction in carbon footprint (location based)
(2024: 52%)
-22pts
Employee net promoter score (eNPS)
(2024: -33pts)
97%
Suppliers paid within 60 days
(2024: 92%)
17.0%
Voluntary employee turnover
(2024: 21.7%)
*White/ethnic minorities in the total workforce. 38% of people (2024: 43%) chose not to respond or specify.
