Capita plcs half-year results for 2025 show solid progress against strategic objectives, with a focus on transformation and innovation. Key highlights include
**Financial Performance**Adjusted revenue decreased by 4% to ยฃ1,154.8 million, primarily due to contract losses and subdued volumes in the Telecommunications vertical. Adjusted operating profit declined by 22% to ยฃ42.6 million, reflecting revenue reductions and reinvestment in the business.
**Contract Wins**Total contract value (TCV) won increased by 17% to ยฃ1,044.4 million, driven by strong performance in Capita Public Service. The company has a pipeline of ยฃ4.4 billion in higher technology opportunities.
**Cost Savings**Capita is on track to deliver ยฃ250 million in cost savings by December 2025, with ยฃ205 million already actioned as of July 2025.
**AI and Technology**The company launched the Capita AI Catalyst Lab to drive efficiencies and improve customer solutions. It also introduced Agents with Agentforce AI, powered by Salesforce, for volume recruitment.
**Employee Engagement**There was a 10-point improvement in the Group employee net promoter score, indicating enhanced employee satisfaction.
**Divisional Performance**Capita Public Service saw a 4% revenue growth, while Contact Centre experienced a 20% decline. Pension Solutions and Regulated Services had minor revenue changes.
**Outlook**Capita expects adjusted revenue to be broadly flat for the full year 2025, with a modest improvement in Group margin and positive free cash flow from the end of 2025.
Overall, Capita is making strategic progress, focusing on technology, cost discipline, and employee engagement, despite some financial challenges in specific divisions. The company remains confident in its full-year outlook and medium-term targets.
Here is a comparison of Capita plc's financials and debt year on year, presented as an HTML table:
**Key Observations:** * **Revenue Decline:** Capita experienced a 6% decline in reported revenue and a 4% decline in adjusted revenue year-on-year. This is primarily attributed to contract losses, volume reductions in the Telecommunications vertical, and the impact of offshoring in the Contact Centre business. * **Profitability Pressure:** Operating profit saw a significant drop of 79%, while adjusted operating profit decreased by 22%. This reflects the revenue decline, reinvestment in the business, and increased costs related to pay awards and National Insurance. * **Improved Cash Flow:** Despite the profitability challenges, operating cash flow increased by 10%, and free cash flow improved by 50% (excluding business exits). This is due to improved operating cash flow, reduced capital expenditure, and lease payments. * **Reduced Debt:** Net debt and net financial debt (pre-IFRS 16) both decreased significantly, indicating a focus on debt reduction. **Overall:** Capita's H1 2025 results show a mixed picture. While revenue and profitability faced headwinds, the company made progress in improving cash flow and reducing debt. The focus on cost reduction and strategic initiatives like AI integration suggests a continued effort to enhance operational efficiency and drive future growth.