Capita plc has simultaneously secured a five-year extension to its Transport for London Road User Charging contracts worth approximately £424.6 million and completed the £1 disposal of its private sector contact centre business to Inspirit Capital; taken together, the two events define the shape of the business Capita is becoming.

Capita plc (LSE: CPI) is a London-based business process outsourcing group. For FY2025, Capita reported adjusted revenue of £2.2 billion, down 1.2%, with adjusted operating profit up 34.2% to £113.5 million at a 5.2% margin, supported by £250 million in annualised cost savings. The Contact Centre division generated a 17.5% revenue decline in FY2025. 

Following disposal, pro forma FY2025 revenue reduces to £1.8 billion. Net financial debt pre-IFRS 16 stood at £143.4 million at year-end 2025. The TfL contract runs October 2026 to September 2031, with options to September 2033, covering Business Operations and Enforcement for the Congestion Charge, ULEZ, LEZ and Tunnels schemes. The private contact centre business was sold for £1 to Inspirit Capital, with contingent consideration of up to £61.5 million payable 2027 to 2030. Advisors: not disclosed.

The structural driver is a deliberate portfolio transformation from low-margin, volume-driven contact centre work toward regulated, long-term public sector contracts with AI embedded in delivery. The TfL contract exemplifies the target model: a single client, multi-year revenue visibility, an operationally embedded relationship, and a scheme expanding as London extends ULEZ coverage. Selling the contact centre for £1 while simultaneously securing £424.6 million of public sector revenue is the clearest possible statement of strategic direction.

The Civil Service Pension Scheme contract issue, expected to hit adjusted operating profit by £25 to £40 million in 2026, is the near-term risk that offsets the strategic clarity. It is a legacy problem in the division Capita is building toward, making it more damaging than a contact centre headwind.

For Ireland, Capita holds contracts with at least four Irish brands, with extensions worth more than €15 million. The portfolio simplification underway in the UK will sharpen its Irish proposition around regulated BPO and technology-enabled public services rather than volume contact centre work.

Source: channelweb.co.uk / investegate.co.uk / capita.com / investing.com