LONDON, March 26, 2026, 11:22 GMT
Capita has agreed to offload its private-sector contact centre unit to Inspirit Capital for just £1, the company said Thursday, as it zeroes in on public services and pensions. The division, responsible for customer calls and digital support, gets spun off in the deal. Capita shares surged 13.7% to 273.50 pence at 0950 GMT.
Capita’s sale is notable: the unit had stood out as a drag on the business. The company reported a 17.5% drop in contact-centre revenue for 2025 earlier this month and warned the segment would remain in the red into 2026. Shares slumped 15%—their steepest single-day loss since March 2024.
Capita reported the business on the block pulled in £398.1 million in adjusted revenue for 2025, but still posted an adjusted operating loss of £34.9 million. The company figures the sale will boost its underlying profit margin by roughly 2 percentage points by 2027 and help shave about £40 million in annual costs for 2026 and 2027. Capita could also receive up to £61.5 million in contingent payments during 2027 and 2028. The deal is set to close ahead of half-year results in August, pending regulatory sign-off.
Capita CEO Adolfo Hernandez said the deal would “enhance our margin expansion” and allow for greater investment in Public Service and Pension Solutions. Will Stamp, founding partner at Inspirit, called the company a “leading position in the industry.” Capita noted that a handful of public-sector contracts currently reported in the contact-centre division will remain with the company. Capita Corporate
Capita is moving further into the UK support-services arena, an area where rivals like Serco and Mitie have captured steadier demand. Serco, for its part, has leaned on government and defence contracts. Mitie’s route has been through growing its services and acquisitions. Capita, meanwhile, disclosed earlier this month that AI-enabled offerings now account for about two-thirds of its revenue — essentially, delivery backed by artificial intelligence tools.
Still, risks persist. This month, Deutsche Bank’s David Brockton flagged that AI is chipping away at Capita’s long-term revenue prospects in its contact-centre segment. Brockton warned that low-cost automation ramps up pricing pressure and could prompt clients to shift more work back in-house.
Capita reiterated its outlook for positive free cash flow in 2026, excluding the impact of business disposals. The firm will host an investor update on June 17, setting out new financial goals and capital allocation plans as it pivots toward a sharper focus on public-service and pensions operations.
Capita shares surged Thursday, with investors treating the sale as a swift way to clear an overhang that had overshadowed the company since March results. The business went for just a nominal sum up front, but the market reaction pointed squarely to relief over shedding losses and the chance for improved margins.
