London · Delayed Price · Currency is GBP · Price in GBX Capita Earnings Call Transcripts
Fiscal Year 2026
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A major divestment of the commercial contact center business will sharpen focus on AI-led BPO and core public sector and pensions markets. Up to GBP 61 million in contingent consideration is possible, with GBP 40 million in annualized cost savings targeted by 2027.
Fiscal Year 2025
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Delivered strong margin and profit growth in 2025, driven by AI-enabled transformation, cost savings, and Public Service contract wins, while Contact Centre remains challenged. Positive free cash flow and continued operational improvements are expected in 2026.
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First-half results show strong progress in Public Service and digital transformation, offset by challenges in Contact Centers. Cost savings and AI initiatives are driving operational improvements, with upgraded guidance for Public Service and continued investment in technology and culture.
Fiscal Year 2024
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2024 was a pivotal year of transformation, with improved operating profit and margin despite revenue decline, driven by cost savings and tech innovation. Outlook for 2025 is stable, with further cost efficiencies, positive free cash flow expected, and continued focus on AI and operational excellence.
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Management is driving a transformation focused on efficiency, technology, and culture, targeting positive free cash flow by 2025 and improved margins. Strong customer interest in new digital offerings and enhanced partnerships are expected to support growth, while cost savings and portfolio optimization continue.
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Operating margin improved 45% and cost savings are ahead of plan, despite a 9% revenue decline year-over-year. Capita One disposal will boost liquidity, and medium-term targets for margin and cash flow are reaffirmed. Technology and GenAI investments are expected to drive future growth.
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A comprehensive transformation is underway, targeting GBP 160 million in annualized cost savings, margin expansion to 6%-8%, and a return to organic growth from 2025. Technology, operational efficiency, and culture are central, with no equity raise planned and positive free cash flow expected next year.