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Capita PLC (GB:CPI)
LSE:CPI
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Capita plc (CPI) AI Stock Analysis

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GB:CPI

Capita plc

(LSE:CPI)

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Neutral 42 (OpenAI - Gpt-5.6Sol)
Rating:42Neutral
Price Target:
269.00 p
▼(-6.76% Downside)
Action:Upgraded
Date:08/04/26
The score is held down primarily by weak financial performance (loss-making results, compressed margins, thin equity/high leverage, and pressured free cash flow). Technicals add caution with the stock below key longer-term moving averages and a negative MACD. The earnings call provides partial support via order book momentum, cost savings and improved operational KPIs, but near-term guidance for cash outflows and CSPS remediation risks limits overall confidence; valuation also lacks support given a negative P/E and no dividend yield data.
Positive Factors
Order Book Visibility
A large order book and strong TCV growth provide multi-period revenue visibility, support client retention and demonstrate continuing demand for Capita's outsourced and managed services.
Negative Factors
Revenue and Profit Decline
The multi-year revenue decline and renewed loss indicate weakening operating momentum. Persistently lower scale can reduce fixed-cost absorption and make sustained margin recovery more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Order Book Visibility
A large order book and strong TCV growth provide multi-period revenue visibility, support client retention and demonstrate continuing demand for Capita's outsourced and managed services.
Read all positive factors

Capita plc (CPI) vs. iShares MSCI United Kingdom ETF (EWC)

Capita plc Business Overview & Revenue Model

Company Description
Capita plc operates as an outsourcer that supports clients across the public and private sectors in the United Kingdom, India, South Africa, and the rest of Europe. It operates through two divisions: Capita Public Service and Capita Experience. Th...
How the Company Makes Money
Capita makes money primarily by delivering outsourced and managed services to organisations under contract. Revenue is generated through (1) long-term service contracts where Capita runs specific client operations (for example, customer service, a...

Capita plc Earnings Call Summary

Earnings Call Date:Aug 04, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Neutral
The call presents a mixed picture: operational and strategic progress (order book growth, TCV momentum, cost savings, AI/hyperscaler partnerships, improved retention and KPI delivery across most divisions) is offset by a material profitability and cash‑flow hit driven by the CSPS remediation, increased net debt and a guided free cash outflow for the year. Management emphasizes remediation priorities, simplification and long‑term AI‑led strategy, but near‑term financial and operational headwinds (CSPS) remain significant.
Positive Updates
Revenue and Top-Line Resilience
Group revenue of GBP 906 million in H1, up 1.6% year‑on‑year; Capita Public Service revenue GBP 729 million, up 2.4% driven by local/regional partnerships, transactional business and TfL.
Negative Updates
Significant Profitability Decline
Adjusted operating profit was GBP 32 million, down 32% year‑on‑year; profit before tax of GBP 12.5 million (down from GBP 29 million prior year), reflecting remediation costs on the CSPS contract and non-repeat prior year benefits.
Read all updates
Q2-2026 Updates
Negative
Revenue and Top-Line Resilience
Group revenue of GBP 906 million in H1, up 1.6% year‑on‑year; Capita Public Service revenue GBP 729 million, up 2.4% driven by local/regional partnerships, transactional business and TfL.
Read all positive updates
Company Guidance
Management guidance: the group expects FY26 revenue to be broadly flat, margins to stay in line with prior guidance but reduced by the Civil Service Pension Scheme remediation costs and residual transition overheads, and free cash flow before business exits to be an outflow of GBP 35–50m; net financial debt (pre‑IFRS16) is expected to increase (was GBP 200m at 30 June, 1.6x EBITDA), reflecting that outflow and disposal-related payments, with total H1 liquidity at GBP 351m (GBP 278m committed facilities after extension of the RCF to GBP 325m, plus GBP 73m net cash). Management reiterated its cost‑savings momentum (GBP 250m already removed, a further GBP 40m targeted in 2026–27), a c.200 basis‑point performance improvement aim by 2027, and noted H1 operating metrics of revenue GBP 906m (+1.6%), operating profit GBP 32m (‑32%), PBT GBP 12.5m, H1 cash conversion 96% (free cash flow GBP 3.5m) and an order book of c. GBP 4bn (TCV growth c.15%).

Capita plc Financial Statement Overview

Summary
Financial statements indicate a stressed profile: the income statement shows multi-year revenue decline and a return to a sizable loss in 2025 with sharp margin compression; the balance sheet shows very thin equity and extremely high leverage (debt-to-equity ~9.6x in 2025) despite lower absolute debt; and cash flows have been weak/inconsistent with negative free cash flow in most recent years and only minimal operating cash flow in 2025.
Income Statement
32
Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.95B2.20B2.42B2.81B3.01B3.18B
Gross Profit232.20M438.70M516.50M592.10M581.40M508.60M
EBITDA-31.90M-22.50M269.50M54.90M238.00M508.70M
Net Income-201.10M-164.10M76.70M-178.10M74.80M224.70M
Balance Sheet
Total Assets1.76B1.74B1.84B2.00B2.55B3.14B
Cash, Cash Equivalents and Short-Term Investments266.40M264.10M254.00M155.40M396.80M317.60M
Total Debt750.70M723.70M680.30M721.00M903.30M1.24B
Total Liabilities1.75B1.70B1.64B1.88B2.20B2.85B
Stockholders Equity12.00M47.40M199.90M113.00M330.20M274.50M
Cash Flow
Free Cash Flow-26.40M-4.80M-75.30M-101.90M24.00M-237.20M
Operating Cash Flow-16.10M4.70M-25.20M-40.30M71.90M-179.10M
Investing Cash Flow-48.90M-43.70M201.20M9.70M344.10M422.40M
Financing Cash Flow2.70M-28.50M-51.50M-76.30M-340.70M-259.70M

Capita plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price288.50
Price Trends
50DMA
261.55
Negative
100DMA
295.93
Negative
200DMA
320.38
Negative
Market Momentum
MACD
-6.18
Positive
RSI
40.60
Neutral
STOCH
11.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPI, the sentiment is Negative. The current price of 288.5 is above the 20-day moving average (MA) of 270.73, above the 50-day MA of 261.55, and below the 200-day MA of 320.38, indicating a bearish trend. The MACD of -6.18 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPI.

Capita plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£8.24B23.225.82%2.87%-0.18%39.04%
72
Outperform
£2.64B32.3515.86%2.15%10.55%-19.05%
68
Neutral
£2.42B16.1517.55%1.87%1.20%221.80%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
£395.14M142.181.30%2.30%8.11%-69.68%
44
Neutral
£1.71B269.42-2.52%0.57%0.18%-55.56%
42
Neutral
£298.25M-1.49-677.10%5.94%-16.13%-1315.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CPI
Capita plc
249.00
-6.50
-2.54%
GB:MTO
Mitie Group plc
209.00
69.12
49.42%
GB:RTO
Rentokil Initial
327.70
-35.49
-9.77%
GB:RST
Restore
300.00
43.99
17.18%
GB:SRP
Serco Group plc
248.20
28.05
12.74%
GB:IWG
IWG plc
181.30
-13.25
-6.81%

Capita plc Corporate Events

Business Operations and StrategyExecutive/Board Changes
Capita strengthens board with AI specialist Radhika Chadwick
Positive
Aug 17, 2026
Capita plc has appointed Radhika Chadwick as an independent non-executive director, effective 1 September 2026, strengthening its board as it advances its strategy as an AI-enabled business services partner. Chadwick, a former McKinsey and EY part...
Executive/Board ChangesRegulatory Filings and Compliance
Capita CEO Adds to Stake as Final Buy-Out Share Award Tranche Vests
Neutral
Aug 10, 2026
Capita plc has disclosed a director share dealing related to Chief Executive Officer Adolfo Hernandez, in line with UK Market Abuse Regulation reporting obligations. The transaction arises from the vesting of the fifth and final tranche of a buy-o...
Regulatory Filings and Compliance
Capita discloses routine share purchase by Chief People Officer
Neutral
Aug 6, 2026
Capita plc has disclosed a routine share transaction by its Chief People Officer, Scott Hill, under the company’s Share Ownership Plan. The filing reports his monthly purchase of ordinary shares, part of ongoing governance requirements for s...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Capita boosts contract pipeline but profits hit by pension scheme costs
Neutral
Aug 4, 2026
Capita reported continued strategic progress in the first half of 2026 as it advances its transformation into an AI-enabled business services partner, simplifying the group through the disposal of its private sector contact centre business and foc...
Business Operations and StrategyExecutive/Board Changes
Capita board member Neelam Dhawan steps down to focus on growing business commitments
Neutral
Aug 3, 2026
Capita plc has announced that independent non-executive director Neelam Dhawan has stepped down from the board with immediate effect to concentrate on her growing business commitments, particularly in India. Dhawan, who joined the board in March 2...
Regulatory Filings and Compliance
Capita Confirms Updated Total Voting Rights
Neutral
Aug 3, 2026
Capita plc is a U.K.-listed outsourcing and professional services company that provides a range of business process and customer management services to corporate and public-sector clients. Its operations rely on a large shareholder base, with gove...
Business Operations and Strategy
Capita Wins £424.6m Extension to TfL Road User Charging Contracts
Positive
Aug 3, 2026
Capita plc has secured a five-year extension to its two Road User Charging contracts with Transport for London, covering Business Operations and Enforcement Operations for schemes such as the Congestion Charge, Ultra Low Emission Zone, Low Emissio...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Capita completes sale of private sector contact centre arm to Inspirit Capital
Positive
Aug 3, 2026
Capita plc has completed the sale of its private sector contact centre business to private equity firm Inspirit Capital, finalising a deal first announced in March 2026 and removing a £206m revenue line that had been modestly loss-making on a...
Business Operations and StrategyPrivate Placements and Financing
Capita Issues $55m in US Private Placement Notes and Eases Debt Covenants
Positive
Jul 22, 2026
Capita has raised $55m (about £41m net of swaps) through an issuance of unsecured senior notes in the US private placement market, maturing in three years with a 7.54% annual sterling coupon. The funds will be used to refinance existing debt ...
Business Operations and Strategy
Capita joins Omnia consortium to deliver British Army collective training
Positive
Jul 14, 2026
Capita plc, a major UK and European outsourcing and business services provider, delivers people-based services underpinned by technology for clients across the public and private sectors. The company positions itself as a key partner in running co...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Capita flags profit hit from Civil Service pensions issues despite solid contract wins
Negative
Jul 9, 2026
Capita reported steady progress in the first half of 2026, with adjusted revenue up 1.6% and strong growth in its Public Service and Pension Solutions divisions, supported by £1bn of new contract wins and robust KPI performance. The group ext...
Regulatory Filings and Compliance
Capita Discloses Monthly Share Purchase by Chief People Officer
Neutral
Jul 8, 2026
Capita plc has disclosed that its Chief People Officer, Scott Hill, has purchased ordinary shares in the company under the Capita Share Ownership Plan. The transaction, classified as a routine monthly share purchase, reflects ongoing executive par...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Ofgem Ends Smart DCC Probe as Capita Unit Tightens Procurement
Neutral
Jul 8, 2026
Ofgem has concluded its investigation into procurement practices at Smart DCC, Capita’s wholly owned but non-consolidated subsidiary that operates the national infrastructure for smart meter monitoring. The regulator reviewed five contracts ...
Business Operations and StrategyFinancial Disclosures
Capita responds to criticism over Civil Service Pension Scheme administration
Negative
Jul 7, 2026
Capita has acknowledged shortcomings in its administration of the Civil Service Pension Scheme following a ministerial statement by the Paymaster General. The company admits service levels have been inadequate, particularly for bereavement, retire...
Regulatory Filings and Compliance
Capita Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Capita plc has confirmed that, as of 30 June 2026, its issued share capital comprises 120,830,667 ordinary shares of 31 pence each, with each share carrying one vote and no shares held in Treasury. The announcement clarifies that this total, which...
Regulatory Filings and Compliance
Capita discloses board-linked fund’s total return swap on its shares
Neutral
Jun 23, 2026
Capita plc has disclosed that Oasis Management Company Ltd., which is closely associated with non-executive director Daniel Wosner, has entered into a cash-settled total return swap referencing Capita’s ordinary shares. The transaction, exec...
Regulatory Filings and Compliance
Capita Discloses Share Dealings by Senior Independent Director
Positive
Jun 15, 2026
Capita plc has disclosed that its Senior Independent Director, Georgina Harvey, has purchased 2,880 ordinary shares in the company, while a person closely associated with her has sold 400 shares. Following these transactions, Harvey now holds 2,88...
Executive/Board ChangesRegulatory Filings and Compliance
Capita Chief Customer Officer Exercises Restricted Shares and Sells Portion to Cover Tax
Positive
Jun 12, 2026
Capita plc has disclosed that its Chief Customer Officer, Richard Holroyd, has exercised restricted share awards granted under the Capita Executive Plan 2021, receiving ordinary shares of 31p each. A portion of the resulting shareholding was sold ...
Regulatory Filings and Compliance
Capita Chief People Officer Adds Shares Under Company Ownership Plan
Neutral
Jun 5, 2026
Capita plc has disclosed that its Chief People Officer, Scott Hill, has acquired ordinary shares of 31p each in the company through a monthly purchase under the Capita Share Ownership Plan. The transaction, reported as an initial notification, ref...
Regulatory Filings and Compliance
Capita Confirms Total Voting Rights at 120.8 Million Shares
Neutral
Jun 1, 2026
Capita plc has confirmed that, as of 31 May 2026, its issued share capital comprises 120,830,667 ordinary shares of 31 pence each, all carrying one vote per share and with no ordinary shares held in treasury, setting the company’s total voti...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026