Capita PLC

Capita announced a five-year extension of the contracts to collect road user charges with Transport for London worth £424.6m, with options for up to two further years. The share rose 5.4% to 272.5 pence. The company also extended its revolving credit facility on improved terms and is driving the sale of its consumer contact‑centre business to Inspirit, measures intended to strengthen the balance sheet and strategic focus. At the same time Capita warns that issues with the Civil Service Pension Scheme contract could reduce adjusted operating profit in 2026 by £25–40m and free cash flow by £35–50m; the official half‑year results will follow shortly. » Más en de.investing.com

The Cabinet Office said it will bring the civil service pension scheme back in-house after Capita repeatedly missed recovery targets and left members waiting up to a year for payments. Delays have caused financial hardship for pensioners and about 17,000 relatives of deceased claimants, with cases of people forced to use food banks or claim universal credit. Capita was awarded a £239m contract and says it inherited a backlog of 90,000 cases, but the government has called the service unacceptable and is planning a long-term insourcing strategy. » Más en theguardian.com

Capita’s stock plunged about 15.2% to 275.5 pence after the Paymaster General criticised the management of the Civil Service Pension Scheme as “completely unprepared” and the systems as “overwhelmed.” The government has withheld milestone payments of £9.9 million and intends to reclaim costs for the deployment of more than 140 officials. Capita acknowledged poor service levels and is assessing the implications of the ministerial statement. Previous contract terminations and denied renewals have increased political and commercial risks and prompted a reassessment of the stock. » Más en de.investing.com