Date Published



A year of significant change with the transformation of Capita now complete: we have established a platform to drive sustainable improving financial performance whilst continuing to strengthen the balance sheet

New, simpler structure

- Delivering benefits from simplicity, focus and efficiency

  • Two core divisions focused on public and private sector digital business process services
  • More client-focused to drive revenue; new operating model to drive efficiency
  • Third division of non-core businesses that will be mainly disposed of in 2022



- Continuing to see the benefits of strong operational delivery and improved reputation

  • Won £3.8bn of total contract value in 2021, a 31% increase vs 2020 (£2.9bn)
  • Renewal rate of 93%, including contracts with Ministry of Justice, two European telecoms clients and major UK financial services institution
  • Order book increase for the first time since 2017; book to bill at 1.2x (2020: 0.9x)
  • Secured £312m through extensions and incremental scopes of work with Transport for London, Defence Fire and Rescue, Department for Work and Pensions

Strong unweighted pipeline of £9.4bn in 2022; year-to-date we have won almost £700m TCV

- Good start to 2022 in Experience with £456m five-year BBC TV licensing extension announced in February


Strengthening the balance sheet and reducing financial obligations

  • Disposals programme has exceeded its £700m target, ahead of schedule
  • Structurally lower debt: pre-IFRS 16 net debt £431m (2020: £569m); pre-IFRS 16 net debt: adjusted EBITDA 1.7x (2020: 2.4x)
  • Planned material further reduction in debt in 2022


Financial results

- Delivered adjusted revenue(1)growth for the first time in six years. Revenue increased 0.4% to £3bn

  • Public Service division had a strong year and grew by 10.8%, Experience declined by 9.4% reflecting previous contract losses, Portfolio declined by 0.3%
  • Major contract wins and extensions in both core divisions: Royal Navy, Job Entry Targeted Support scheme, RSPCA

- £88m increase in adjusted profit before tax(1)from stable revenue and benefit of cost savings, offsetting contract losses and general cost increases

- Reported profit before tax of £286m (2020: loss of £49m) as profits on disposal offset systems write down and onerous contract provision

- Adjusted free cash flow(1) of £78m (2020: £170m); final year of major below-the-line cash commitments including £328m related deferred VAT, pension deficit contributions and restructuring costs

- £197m reduction in net debt to £880m (2020: £1,077m) funded by operating cash flow and disposals


Year ended 31 December 2021

Financial highlights-continuing operations

Reported 2021

Reported 2020

Reported YOY change

Adjusted(1) 2021

Adjusted(1) 2020

Adjusted(1) YOY change

Revenue £3,182.5m £3,324.8m (4.3%) £3,008.5m £2,995.5m 0.4%
Operating profit/(loss) (£86.6m) (£32.0m) 171% £139.1m £51.1m 172%
Profit/(loss) before tax £285.6m (£49.4m) 678% £93.5m £5.4m 1,631%
EBITDA £222.3m £225.6m (1%) £295.1m £228.4m 29%
cash generated from operations (£121.3m) £434.2m (128%) £185.4m £295.2m (37%)
Earnings/(loss) per share 13.33p (0.41)p 3,351% 1.61p 2.41p (33%)
Free cash flow (£237.1m) £303.8m (178%) £78.1m £170.3m (54%)
Net debt (£879.8m) (£1,077.1m) £197.3m (£879.8m) (£1,077.1m) £197.3m



  • In 2022 we expect revenue growth built on strong contract performance in 2021, a growing pipeline of new business in both Public Service and Experience and recovery in transactional businesses from Covid-19
  • Profit margins expected to reduce slightly in 2022 reflecting impact of prior year contract losses and closed book Life & Pensions in Experience, evolution of Army recruitment contract in Public Service and investment in recruitment and training offset by profit from revenue growth and cost savings from the new structure
  • Improving cash conversion, reduced one-off payments and recovery in transactional businesses to drive positive free cash flow; disposals continuing to strengthen the balance sheet and materially reduce net debt
  • Medium term outlook for the core Group of mid-single digit revenue growth, high single digit EBITDA margins with cash conversion of 70% to 80% to drive positive sustainable free cash flow; strong balance sheet


Jon Lewis, Chief Executive Officer said:

“It was a year of significant change at Capita as we completed our transformation by establishing a platform for growth, while continuing to strengthen the balance sheet.

“We grew our revenue in 2021, reversing six years of declines, and expect this trend to continue to improve, while we also expect to deliver positive sustainable free cash flow in 2022.

“Capita now has the foundations in place to deliver sustainable improving financial performance; our new simplified divisional structure will deliver significant benefits.

“We also continue to prioritise being a purpose-led, responsible business. We have made good progress with diversity, will continue to focus on driving investment in our people, and have committed to a net zero emissions plan.

“None of this would have been possible without our people, whom I would like to thank for all their hard work, commitment and professionalism.”

(1)Refer to alternative performance measures (APMs) in the Appendix in the full year statement below.


Investor presentation

A presentation for institutional investors and analysts hosted by Jon Lewis, CEO and Tim Weller, CFO, will be held at 65 Gresham Street, London EC2V 7NQ at 09:00am UK time, 10 March 2022. There will also be a live audio webcast (link below) which 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 following day.

Participant webcast :

Download the full year 2021 statement

Visit our investor centre


For further information contact:

Stuart Morgan
Investor Relations Director
T +44 (0) 7989 665 484

Capita press office
T +44 (0) 20 7654 2399

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