London-listed outsourcing firm Capita (CPI.L) on Monday reaffirmed its annual revenue forecast, outlining measures aimed at offsetting contract losses and strategically reshaping its business operations. The UK-based company provides a broad range of support services to both the public and private sectors across the United Kingdom, handling essential functions for its clients. Capita highlighted its intensified focus on streamlining its extensive business and increasing its exposure to public sector work, a key strategy to bolster overall performance. This update follows closely after activist investor Oasis Management significantly increased its stake, converting its over 15% exposure into shares to become Capita’s largest shareholder.
The company continues to expect its crucial public service business revenue to achieve low- to mid-single digit percentage growth for the year ending December 31. This division, which notably contributes 81% of the group’s total revenue, demonstrated robust performance with a 5.8% growth in the first four months of 2026, largely benefiting from increased volumes in various government contracts. Further underpinning this positive trend, Capita’s order book experienced a substantial 20% year-over-year increase, reaching 750 million pounds (approximately $1 billion) during the same four-month period. RBC Capital Markets analysts viewed these developments as a sign of “encouraging progress both strategically and financially.”
Beyond its public service operations, Capita also maintained its revenue forecast for its other significant unit, pensions solutions, and reiterated its annual cost savings targets across both 2026 and 2027. In a notable strategic move announced back in March, the company had previously outlined plans to divest its private sector contact centre business, a decision that followed an earlier profit margin warning. Shares in the London-listed firm responded positively to the update on Monday, climbing 4.8% to 330 pence in early trade, reflecting investor confidence in the company’s strategic direction.
