Finance
UK's Capita Sales Growth Hit by Contract Losses
Published by Global Banking & Finance Review®
Posted on December 12, 2025
2 min readLast updated: January 20, 2026
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Capita's sales growth slowed due to contract losses and revenue delays, with significant impacts on key divisions like Public Service and Contact Centre.
Capita's Sales Growth Slows Amid Contract Losses
Dec 12 (Reuters) - British outsourcing firm Capita said on Friday its sales growth eased in the second half of the year due to contract losses and revenue delays at key units.
Revenue at its largest division Capita Public Service grew 4% in the 11 months to November 30, but moderated slightly in the second half compared with the first. Adjusted revenue in the Contact Centre division fell 18.3%.
Capita now expects full-year Public Service growth to come in just below mid-single digits, a high-teens decline in Contact Centre revenue and low-single-digit growth in Pension Solutions.
It, however, kept its guidance on margin improvement and free cash flow.
It said it delivered 250 million pounds ($334.63 million) in annual cost savings and saw its contract pipeline surge 41% from the first half to 16.5 billion pounds.
Separately, the group agreed to hand back its final two legacy Life & Pensions (L&P) contracts to Royal London in a deal worth 52.5 million pounds.
The migration of the contracts is expected to take five years and result in a free cash outflow of 20 million pounds per year during that period, totalling 100 million pounds.
($1 = 0.7471 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
Key Takeaways
- •Capita's sales growth slowed in the second half of the year.
- •Public Service division grew 4% but slowed in the second half.
- •Contact Centre revenue fell by 18.3%.
- •Capita expects low-single-digit growth in Pension Solutions.
- •Contract pipeline surged 41% to 16.5 billion pounds.
Frequently Asked Questions about UK's Capita sales growth hit by contract losses
1What is revenue growth?
Revenue growth refers to the increase in a company's sales over a specific period, indicating how well the business is performing in generating income.
2What are cost savings?
Cost savings are reductions in expenses achieved through various means, such as improving operational efficiency or renegotiating contracts.
3What is a contract loss?
A contract loss occurs when a company fails to renew or fulfill a contract, resulting in a decrease in expected revenue.
4What is adjusted revenue?
Adjusted revenue is the revenue figure that has been modified to exclude certain items, providing a clearer view of a company's financial performance.
5What is a contract pipeline?
A contract pipeline refers to the collection of potential contracts that a company is pursuing, indicating future revenue opportunities.
