Capita (LSE:CPI) has responded to criticism of its administration of the Civil Service Pension Scheme following a statement from the Paymaster General, acknowledging that service standards have fallen below expectations. The company said performance has been particularly disappointing in handling bereavement, retirement and pension quotation cases, and apologised to affected scheme members for the disruption and distress caused.
The outsourcing group said it is working closely with the Cabinet Office to improve operations and resolve outstanding issues as quickly as possible. According to Capita, new processes and automation have already been introduced to help reduce the backlog and improve service delivery. The company is reviewing the implications of the ministerial statement and said it will provide a further market update if necessary. It also confirmed that a scheduled trading update later this week will outline progress against its wider strategic objectives.
Capita’s outlook continues to be affected by weak financial performance, including losses during 2025, pressure on margins, inconsistent and negative free cash flow, and a highly leveraged balance sheet with limited equity. These factors are partly offset by positive technical indicators, with the shares trading above key moving averages and maintaining strong momentum, although overbought signals suggest there may be increased risk of a short-term pullback. Valuation remains challenging due to ongoing losses and the absence of a dividend.
More about Capita plc
Capita plc is a UK-listed outsourcing and business services company that provides technology-enabled services to organisations across the public and private sectors. Operating in eight countries, with a primary focus on the UK and Europe, the company helps clients manage complex operational processes while improving customer and citizen experiences.
Its services span areas including government administration, customer management, digital transformation and business process outsourcing, supporting millions of people through essential public and commercial services.
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