Capita Reaffirms Annual Revenue Growth as Public Sector Orders Surge
Capita's Financial Performance and Strategic Developments
May 18 (Reuters) - Capita on Monday reaffirmed its forecast for annual revenue, as the UK-based outsourcing firm looks to measures aimed at offsetting contract losses and reshaping its business.
The company, which provides support services to the UK public and private sectors, said it is focusing on streamlining its business and increasing its exposure to public sector work to support performance.
Shareholder Changes and Market Activity
Capita's update comes a week after activist investor Oasis Management swapped its over 15% exposure in the British firm to shares, becoming its largest shareholder.
Key Financial Highlights
Revenue Growth and Order Book
Here are some details:
- Capita still expects its public service business revenue to grow in low- to mid-single digit percentage for the year ending December 31. In the first four months of 2026, growth was 5.8%.
- The firm's order book was up 20% year-over-year to 750 million pounds ($1 billion) in the four-month period.
Public Service Unit Performance
Capita's Public Service unit, which contributes 81% of the group revenue, benefited from increased volumes in government contracts.
Analyst Commentary
The update was a sign of "encouraging progress both strategically and financially", RBC Capital Markets analysts said.
Other Business Units and Cost Saving Initiatives
- Capita also retained its revenue forecast for its other major unit, pensions solutions and annual cost savings target across 2026 and 2027.
- In March, the company had announced plans to sell its private sector contact centre business, following a profit margin warning.
Share Price Movement
Shares in the London-listed firm were up 4.8% at 330 pence in early trade on Monday.
Exchange Rate Note
($1 = 0.7492 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips)
