Capita (LSE:CPI) reported a 2.9% increase in adjusted group revenue during the first four months of 2026, supported by strong performances in several core divisions. Public Service revenue rose 5.8%, while Pension Solutions delivered growth of 23.4%, helping offset weaker trading in retained and private sector contact centre operations and a significant decline within Regulated Services.
Group advances AI-led transformation and contact centre disposal
The company is continuing to reshape its business portfolio through the planned disposal of its private sector contact centre division, alongside ongoing cost-saving initiatives and efforts to improve operating margins. Capita also said it is accelerating its transition towards becoming an AI-focused outsourcing provider, highlighting developments such as the launch of its AWS Storefront platform as part of that strategy.
Management noted that the business is continuing to address operational issues linked to the Civil Service Pension Scheme while benefiting from a 20% increase in new contract wins across the group. The company believes these developments support its longer-term transformation objectives despite ongoing challenges in certain legacy operations.
Capita’s overall outlook remains constrained by weaker financial performance, including recent losses, margin pressure, elevated leverage levels and weak free cash flow generation. Technical market indicators also remain negative, with the shares trading below key moving averages and momentum measures remaining soft. Valuation support is limited due to the company’s negative earnings profile and lack of dividend yield visibility.
More about Capita plc
Capita plc is a business process outsourcing and professional services company serving public and private sector clients across the UK and Europe. Operating in eight countries, the group provides people-based operational services supported by AI, digital technology and data capabilities, with activities spanning public services, pensions administration, customer contact operations and broader outsourced business support services.
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