Capita shares rise as group extends contract with telecoms firm

  • Capita shares have fallen by over 59% in the last year  

Capita shares rose on Wednesday after the group confirmed it had extended its contract with a ‘leading’ European telecoms company. 

Shares in Capita rose 3.15 per cent or 0.44p to 14.38p on Wednesday, having fallen over 59 per cent in the last year. 

In a deal worth more than £95million over four years, Capita said it would continue to deliver ‘customer experience services’ for the client, including receiving customer enquiries, chatbots, ‘social media engagement’ and management technical support. 

Extension: Capita has extended its contract with a European telecoms company 

Corinne Ripoche, chief executive of Capita Experience, said: ‘We are very proud to extend this contract, which builds on the success of our long-standing strategic partnership since 2008.

‘We will be focused on delivering a customer-centric approach which anticipates customer needs, through a seamless and personalised experience.

‘We’ll continue to leverage technology to meet our customer’s very high-quality requirements.’

Last month, Capita said it was earmarking an additional £100million of annual spending cuts, as the group’s new boss vowed to boost its competitive edge after swinging to a loss.

The group posted a loss of £106.6million for 2023, down from a £61.4million profit the prior year and ‘reflecting business exits, cost reduction programme expenses and 2023 cyber incident costs’.

Chief executive Adolfo Hernandez told investors last month he would plough ahead with a ‘rapid reduction’ in costs, following a separate £60million-a-year savings drive announced at the end of 2023.

Capita, which operates London’s Ultra Low Emission Zone, did not say last month whether the latest round of savings would result in a further headcount reduction, after announcing plans to axe 900 jobs in November. 

Capita is one of the UK’s biggest employers, with a 43,000-strong workforce, offering staff for many Government functions, including a large amount of NHS support staff.

On an adjusted basis, its revenue edged up 1.3 per cent to £2.6billion last year. On a reported basis year-on-year, revenue fell 6.6 per cent.

Capita said 2023 revenues were lifted by growth in its Personal Independence Payments unit, as well as ‘benefit from indexation and a commercial settlement in the closed book Life & Pensions business in Experience’.