Chairman's introduction

Establishing the platform for growth

In 2021, Capita made further progress towards becoming a sustainable, profitable business capable of delivering positive free cash flow.

The fundamentals needed to build a successful company are in place – strong service delivery, a stronger balance sheet, and a simpler, more efficient and stable structure. We have addressed the major financial and operational debt that the business faced. The business is now more predictable, and operates with the values and behaviours that align with Capita’s purpose.

The effort and investment required to achieve all this should not be underestimated, but it has been essential to create a business that has a future and that people want to work for and with. Despite the progress made to improve so many aspects of the business, the year was disappointing for our shareholders who have been patient and supportive, attributes which we do not take for granted. They now need to experience the benefits of the company’s completed transformation.

I would like to thank all of Capita’s people for their total commitment in a year of disruption caused by external forces and the final stages of operational restructuring which now provides the platform to achieve the key goal of meaningful growth.


"The completion of Capita’s transformation has resulted in a clear, improved and simpler operating model. The fundamentals needed to build a successful company are in place."

Sir Ian Powell, Chairman, Capita PLC

Chief Executive Officer's review

A year of significant change

2021 was a year of significant change at Capita as we completed our transformation and established the platform for long-term success. We now have a foundation in place to deliver sustainable, improving financial performance and look forward to delivering this as we move into 2022 and beyond.

At the same time, we will continue to prioritise being a purpose-led, responsible business; this is our licence to operate. We are pleased to have maintained a high customer net promoter score (cNPS). However, our employee NPS (eNPS) was disappointing, reflecting the degree of change in the business and continued impact of the pandemic, and we have a comprehensive plan in place to address this. We have also made good progress with diversity and we have committed to a net zero plan.

In August, we established our new, simplified divisional structure which will deliver significant benefits in the future: two core divisions that focus on public and private sector digital transformation and technology outsourcing services; clarity of focus on our markets and clients; benefits expected from greater operational efficiency; and a third division of non-core businesses that will be disposed of. The proceeds from these disposals will be used to continue to strengthen our balance sheet.


"We now have a foundation in place to deliver sustainable, improving financial performance and look forward to delivering this as we move into 2022 and beyond"

Jon Lewis, Chief Executive Officer at Capita plc

Chief Financial Officer’s review

Strengthening the balance sheet

Adjusted revenue was broadly in line with the prior year. Contract losses halved compared with 2020 benefiting from our sustained focus on retention and service delivery. Contract wins reflect the commencement of the Royal Navy training contract, Job Entry Targeted Support (JETS) contract and the annualised impact of the Defence Fire and Rescue Project (DFRP) contract.

The increase in adjusted profit before tax reflects the benefit of stable revenues, cost savings from our transformation programme and the reduction in the holiday pay accrual in 2021 compared with 2020, offset by other cost increases, including the impact of the reinstatement of the employee bonus scheme. The adjusted profit before tax in 2021 excludes the financial impact of a closed book Life & Pensions contract termination, which by virtue of size has been excluded from adjusted results as later described in this report. The Group continued to participate in the job retention scheme made available by the Government to help ease the employment impact of Covid-19 and furlough related income of £4.9m (2020: £21.3m) was recorded in the period which was offset against the associated payroll costs.


"We have already exceeded the target we set of £700m in total disposal proceeds to be delivered by June 2022."

Tim Weller, Chief Financial Officer

Divisional performance

We report our financial performance across three operating divisions.


Adjusted revenue: Public Service

2021: Adjusted operating profit: £98.3m
Employees: 12,000


Adjusted revenue: Experience

2021: Adjusted operating profit: £69.1m
Employees: 30,000


Adjusted revenue: Portfolio

2021: Adjusted operating profit: £23.8m
Employees: 5,000

Financial highlights and KPIs


Reported revenue

(2020: £3,324.8m)


Reported profit/(loss) before tax

(2020: £(49.4)m)


Reported free cash flow

(2020: £303.8m)


Adjusted revenue

(2020: £2,995.5m)


Reported earnings/(loss) per share (continuing ops)

(2020: (0.41)p)


Adjusted profit before tax

(2020: £5.4m)


Adjusted earnings per share

(2020: 2.41p)


Adjusted free cash flow

(2020: £170.3m)

Non-financial KPIs


Points swing in employee net promoter score

(2020: +7pts)


Employee engagement

(2020: 72%)


Voluntary employee turnover

(2020: 20%)


Points swing in customer net promoter score

(2020: +17pts)


Diversity: gender M/F

(2020: 52/48%)


Diversity: Ethnicity (White/Black, Asian and minority ethic)


Suppliers paid within 60 days

(2020: 95%)


Reduction in carbon footprint (location-based)

(2020: 40%)


Reduction in carbon footprint (market-based)

(2020: 35%)


Total shareholder return (TSR)

(2020: (76.1)%)

43.6m (gross tonnes)

CO2 emissions Scope 1,2 and 3

(2020: 55.2m gross tonnes)

Key downloads

The full 2021 Annual Report and key sections will be available to download from below once it is published.

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Results and presentations

View our full library of financial results, reports and investor presentations.

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Corporate governance

Capita is committed to maintaining high standards of corporate governance.

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