Half Year Results 2026

Adolfo Hernandez, Chief Executive Officer, said:

"We have made demonstrable progress in the first half of the year as we continue to transform Capita into an AI-enabled business services partner. We have strengthened our operational platform and simplified the Group significantly through the disposal of our private sector contact centre business which will allow us to focus our efforts in structurally growing and resilient markets.

We secured almost £1 billion of contract wins, while continuing to invest in our people and AI capabilities. The progress we have made across our strategic priorities gives us confidence that we are building a stronger, more focused business for the future.

While the operational challenges on the Civil Service Pension Scheme remain our immediate priority, we are confident that we have the right processes, technology and leadership in place to achieve service levels and deliver for members.

Looking ahead, our focus is on maintaining our momentum by accelerating the adoption of AI across our operations, delivering further efficiencies, converting our strong pipeline into sustainable growth and continuing to strengthen cash generation."

Setting the foundations for the future

• Secured £998m of Total Contract Value (TCV) in H1 2026, 15% ahead of the prior year. Strongest TCV performance in Public Service since 2021
• Major wins including Synergy Business Process Services, Army Collective Training Service and a significant renewal in Pension Solutions. Strong start to second half of the year with £425m renewal with Transport for London signed in July
• Book to bill of 1.1x, strong performance in Public Service, delivering 1.1x, before the impact of Transport for London renewal
• Pipeline strengthened materially, with an unweighted pipeline of approximately £24.4bn (December 2025: £18.6bn), reflecting demand for our service delivery and technology-enabled transformation
• Completed the disposal of the private sector contact centre business, simplifying operations, creating further cost savings opportunities and margin improvement
• Maintained strong operational performance, with Group KPI delivery remaining strong
• Expanded use of AI agents internally and across client contracts, supporting productivity, service quality and operational efficiency improvements
• Continued investment in colleagues, AI skills and leadership capability, internal mobility increased to 41%, up 11% from the prior year
• Financial flexibility through an increased £325m revolving credit facility to June 2029, with the option for two additional one-year extensions, and issuance of $55m US private placement notes

Key financial highlights

• Adjusted revenue¹ increased 1.6% to £906.4m (H1 2025: £892.2m)
  • Growth in Public Service (+2.4%) and Pension Solutions (+24.7%), partially offset by a decline in Regulated Services as expected as we withdraw from this business, and a marginal decline in the retained Contact Centre busines
• Adjusted operating profit¹ declined 31.6% mainly due to additional costs incurred on the Civil Service Pension Scheme contract, as previously announced, partly offset by savings delivered through the 2025 cost reduction programme
• Decline in adjusted operating cash conversion¹ due to the above reduction in adjusted operating profit¹, continued investment in CSPS, mobilisation costs on the Synergy Business Process Services contract, prior year favourable timing and completion of a major Public Service contract programme

Strategic priorities for H2 2026/FY Outlook

• Continue Civil Service Pension Scheme service recovery and backlog reduction
• Accelerate AI adoption and agentification across client and internal operations
• Deliver further simplification and efficiency benefits following the contact centre disposal
• Convert a strong sales pipeline into future revenue growth
• Outline refreshed strategic ambitions, medium-term financial targets and capital allocation priorities at the Group's Capital Market Event on 4 November
• Expect the Group to deliver positive free cash flow, excluding business exits, in 2027

¹ Definitions and calculations of non-IFRS measures (alternative performance measures) can be found in the Appendix.

² 2025 comparatives have been re-presented from those previously published to reflect the private sector contact centre business as a discontinued operation.

Investor presentation

A presentation for institutional investors and analysts hosted by Adolfo Hernandez, CEO and Pablo Andres, CFO, will be held at 09:00am BST, Tuesday 4 August 2026. This will be held in the Novotel, 3 Kingdom Street, Paddington London W2 6BD. A live webcast will also be available (www.capita.com/investors) and will subsequently be available on demand. The presentation slides will be published on our website at 07:00am and a full transcript will be available the next working day.

Webcast link:

https://webcast.openbriefing.com/capita-hy26/ 

For further information: