In a significant strategic shift, Capita has agreed to sell its private sector contact centre business to Inspirit Capital for a nominal fee of just £1. This decision comes as part of Capita’s broader effort to streamline operations and enhance profitability.
Previously, the expectation was that the contact centre unit would continue to operate as a key revenue generator. In 2025, this unit generated a notable £398.1 million in revenue. However, it also reported an operating loss of £34.9 million, highlighting the challenges it faced.
The decisive moment came with the realization that simplifying the business structure could lead to better financial outcomes. By selling the contact centre division, Capita aims to retain £6.5 million in cash for working capital purposes while also setting the stage for potential future gains. There is a contingent consideration of up to £61.5 million expected to be paid in 2027 and 2028, which could further benefit the company.
Adolfo Hernandez, a spokesperson for Capita, emphasized the importance of this sale, stating, “The sale of the private sector contact centre business further simplifies the group and will enhance our margin expansion.” This reflects a clear focus on improving operational efficiency.
As a result of this transaction, Capita anticipates delivering about 200 basis points improvement in adjusted operating margin by 2027. The company is also targeting annualized savings of approximately £40 million across 2026 and 2027, with an anticipated cash cost of £20 million to achieve these savings.
The implications of this sale extend beyond immediate financial metrics. By removing further complexity from the group, Capita aims to unlock material overhead reductions, positioning itself for a more streamlined future.
Experts suggest that this move could not only stabilize Capita’s financial standing but also enhance its competitive edge in the market. As the company focuses on core operations, the potential for growth and improved margins becomes more tangible.
Overall, this sale marks a pivotal moment for Capita as it navigates the challenges of modern business and seeks to create a more agile and profitable organization.
