LONDON, March 26, 2026, 11:22 GMT
Capita said on Thursday it would sell its private-sector contact centre business, which handles customer calls and digital support, to Inspirit Capital for £1 as the outsourcing group sharpened its focus on public services and pensions. Shares were up 13.7% at 273.50 pence by 0950 GMT. 1
The disposal matters because the unit had become one of Capita’s clearest weak spots. Earlier this month the company said contact-centre revenue fell 17.5% in 2025 and the division was expected to stay loss-making in 2026, helping send the shares down 15% in their worst day since March 2024. 2
The business being sold generated adjusted revenue of £398.1 million in 2025 but an adjusted operating loss of £34.9 million, Capita said. The group expects the deal to lift its underlying profit margin by about 2 percentage points by 2027, deliver about £40 million of yearly savings across 2026 and 2027, and leave it with potential contingent payments of up to £61.5 million in 2027 and 2028; completion is expected before half-year results in August, subject to regulatory approval. 3
Chief executive Adolfo Hernandez said the sale would “enhance our margin expansion” and let Capita invest more heavily in Public Service and Pension Solutions. Inspirit founding partner Will Stamp said the business had a “leading position in the industry”, while Capita added that a small number of public-sector contracts now reported inside the contact-centre segment would stay with the group. 3
That pushes Capita deeper into the parts of the UK support-services market where peers such as Serco and Mitie have found firmer demand. Serco has been buoyed by government and defence work, Mitie has expanded through service growth and deals, and Capita said earlier this month that two-thirds of its revenue was now AI-enabled, meaning supported by artificial-intelligence tools in delivery. 4
But the risks are still there. Deutsche Bank analyst David Brockton said this month that AI was eroding the “long-term revenue outlook” for Capita’s contact-centre activities, warning that cheaper automation can intensify price pressure and encourage clients to bring work back in-house. 5
Capita said it still expects positive free cash flow in 2026 before the effect of business exits. The company plans an investor update on June 17 to lay out refreshed financial targets and capital allocation as it recasts itself around public-service and pensions work. 1
Thursday’s share jump suggested investors saw the disposal as a quick removal of an overhang that had come to dominate Capita’s turnaround story after its March results. The business was sold for only a nominal sum upfront, but investors appeared to focus on the removal of losses and the prospect of better margins. 6
