Capita

Capita LON: CPI said it made operational and strategic progress in the first half despite costs tied to its Civil Service Pension Scheme, or CSPS, contract, with management highlighting revenue growth, contract wins and further efficiency measures.

A common question posed over the last couple of years is around whether traditional Business Process Outsourcing (BPO) firms will fall victim to the advance of AI? Or will the alternative be true - AI

That’s an interesting confession/statement of intent from Adolfo Hernandez, CEO of services firm Capita, the largest Business Processing Outsourcing (BPO) and professional services firm, particularly as the firm is still dealing with the aftershocks from a highly-public mistake, namely its administration of the UK Civil Service Pension Scheme (CSPS).

‘Abysmal’ service In a response to Hernandez’s statement, copied to all Capita staff, a member of the pensions team said: “The service provided by Capita surpasses your assertion of ‘not good enough’, it has been abysmal for members.

Continued strategic progress and in line full year financial performance guidance "We have made demonstrable progress in the first half of the year as we continue to transform Capita into an AI-enabled business services partner. We have strengthened our operational platform and simplified the Group significantly through the disposal of our private sector contact centre business which will allow us to focus our efforts in structurally growing and resilient markets.

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News: ---------- Volution Group PLC - Crawley, England-based energy efficiency and indoor air-quality solutions provider - Announces acquisition of Monchengladbach, Germany-headquartered getAir GmbH, which provides decentralised residential heat recovery ventilation systems to original equipment manufacturers, mainly in Europe.

The following is a round-up of earnings and trading updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News: ---------- Volution Group PLC - Crawley, England-based energy efficiency and indoor air-quality solutions provider - Announces acquisition of Monchengladbach, Germany-headquartered getAir GmbH, which provides decentralised residential heat recovery ventilation systems to original equipment manufacturers, mainly in Europe.

HSBC (HSBA) announced a new $1bn (£740mn) buyback, the first since a pause last October, after profits surged in the second quarter. Pre-tax profit was up 60 per cent to $10.1bn in the three months to 30 June, against the same period last year.

Capita plc today announces that it has secured a five-year extension for its two Transport for London (TfL) Road User Charging contracts. The extensions run from October 2026 to September 2031, with options to extend for up to a further two years to September 2033.

H1 2026 half year results

{ "summary": "Capita reported first-half revenue growth and a larger order book, but costs associated with remediating the Civil Service Pension Scheme (CSPS) contract reduced profitability. Adjusted revenue rose 1.6% to £906 million, while adjusted operating profit fell 32% to £32 million. The company maintained a cautious cash-flow outlook and expects net debt to increase due to anticipated cash outflows and disposal-related costs. Management emphasized efforts to position Capita as an AI-led business process services provider, with nearly 500 AI agents deployed and expanded partnerships with hyperscalers."

{ "summary": "Capita's first-half revenue rose modestly, but profit fell sharply due to costs tied to its troubled Civil Service Pension Scheme contract. The company reported H1 2026 revenue of £906 million, up 1.6% from a year earlier, while operating profit fell 32% to £32 million and pre-tax profit dropped 57% to £12.5 million. The shares fell 5.26% to $252 from a previous close of $266, leaving the stock well below its 52-week high of $415. Capita's management said the company's core public service business remained stable, and pension solutions posted strong revenue growth, but the CSPS contract continued to hurt margins and cash generation. The company expects full-year 2026 revenue to be broadly flat, reflecting earlier contract losses and the timing of new contract wins. Management kept margin guidance in line with prior expectations, though it said additional CSPS costs and residual overheads will weigh on performance. Capita also pointed to a strong order book of £4 billion, excluding a £425 million Transport for London extension announced in July. The company's Chief Executive Adolfo Hernandez said the company's transformation remains a long-term effort, and the company is working with the Cabinet Office to turn unworkable cases into workable ones. Capita's Chief Financial Officer Pablo said the first half marked 'massive progress in building the better Capita,' citing the sale of the private contact centers business, solid public-sector performance, and stronger liquidity. Analysts focused heavily on the CSPS recovery timeline, cash flow guidance, and the company's AI strategy. Management said it expects to resolve the flow of new CSPS cases by September 2026, excluding cases with external dependencies, and to make progress on the stock of older cases by October." }