Capita : Press release (hy 2026 report 20260803 final)

About this update from Capita Plc

Capita plc Half Year Results 2026 Continued strategic progress and in line full year financial performance guidance Adolfo Hernandez, Chief Executive Officer, said : "We have made demonstrable progress in the first half of the year as we continue to transform Capita into an AI-enabled business services partner. We have strengthened our operational platform and simplified the Group significantly through the disposal of our private sector contact centre business which will allow us to focus our efforts in structurally growing and resilient markets. We secured almost £1 billion of contract wins, while continuing to invest in our people and AI capabilities. The progress we have made across our strategic priorities gives us confidence that we are building a stronger, more focused business for the future. While the operational challenges on the Civil Service Pension Scheme remain our immediate priority, we are confident that we have the right processes, technology and leadership in place to achieve service levels and deliver for members. Looking ahead, our focus is on maintaining our momentum by accelerating the adoption of AI across our operations, delivering further efficiencies, converting our strong pipeline into sustainable growth and continuing to strengthen cash generation." Setting the foundations for the future Secured £998m of Total Contract Value (TCV) in H1 2026, 15% ahead of the prior year. Strongest TCV performance in Public Service since 2021 Major wins including Synergy Business Process Services, Army Collective Training Service and a significant renewal in Pension Solutions. Strong start to second half of the year with £425m renewal with Transport for London signed in July Book to bill of 1.1x, strong performance in Public Service, delivering 1.1x, before the impact of Transport for London renewal Pipeline strengthened materially, with an unweighted pipeline of approximately £24.4bn (December 2025: £18.6bn), reflecting demand for our service delivery and technology-enabled transformation Completed the disposal of the private sector contact centre business, simplifying operations, creating further cost savings opportunities and margin improvement Maintained strong operational performance, with Group KPI delivery remaining strong Expanded use of AI agents internally and across client contracts, supporting productivity, service quality and operational efficiency improvements Continued investment in colleagues, AI skills and leadership capability, internal mobility increased to 41%, up 11% from the prior year Financial flexibility through an increased £325m revolving credit facility to June 2029, with the option for two additional one-year extensions, and issuance of $55m US private placement notes Key financial highlights Adjusted revenue 1 increased 1.6% to £906.4m (H1 2025: £892.2m) Growth in Public Service (+2.4%) and Pension Solutions (+24.7%), partially offset by a decline in Regulated Services as expected as we withdraw from this business, and a marginal decline in the retained Contact Centre business Adjusted operating profit 1 declined 31.6% mainly due to additional costs incurred on the Civil Service Pension Scheme contract, as previously announced, partly offset by savings delivered through the 2025 cost reduction programme Decline in adjusted operating cash conversion 1 due to the above reduction in adjusted operating profit 1 , continued investment in CSPS, mobilisation costs on the Synergy Business Process Services contract, prior year favourable timing and completion of a major Public Service contract programme Strategic priorities for H2 2026/FY Outlook Continue Civil Service Pension Scheme service recovery and backlog reduction Accelerate AI adoption and agentification across client and internal operations Deliver further simplification and efficiency benefits following the contact centre disposal Convert a strong sales pipeline into future revenue growth Outline refreshed strategic ambitions, medium-term financial targets and capital allocation priorities at the Group's Capital Market Event on 4 November Expect the Group to deliver positive free cash flow, excluding business exits, in 2027 Financial highlights - continuing operations 30 June 2026 30 June 2025 2 YoY change Revenue Adjusted revenue 1 £948.3m £906.4m £960.5m £892.2m (1.3)% 1.6% Operating profit Operating margin 1 Adjusted operating profit 1 Adjusted operating margin 1 £25.9m 2.7% £32.2m 3.6% £18.4m 1.9% £47.1m 5.3% 40.8% 80bps (31.6)% (170)bps EBITDA 1 Adjusted EBITDA 1 £56.7m £59.5m £49.3m £73.9m 15.0% (19.5)% Profit before tax Adjusted profit before tax 1 £4.1m £12.5m £1.7m £29.1m 141.2% (57.0)% Basic (loss)/earnings per share Adjusted basic/(loss) earnings per share 1 (3.60)p 13.38p (13.59)p (6.09)p (73.5)% n/a Operating cash flow 1 Operating cash flow excluding business exits 1 Adjusted operating cash conversion 1 Free cash flow 1 Free cash flow excluding business exits 1 £35.5m £56.9m 95.6% £(23.6)m £3.5m £67.7m £82.9m 112.2% £1.1m £25.2m (47.6)% (31.4)% (16.6)% n/a (86.1)% Net debt 1 Net financial debt (pre-IFRS 16) 1 £(499.7)m £(200.4)m £(412.2)m £(87.0)m £(87.5)m £(113.4)m Definitions and calculations of non-IFRS measures (alternative performance measures) can be found in the Appendix. 2025 comparatives have been re-presented from those previously published to reflect the private sector contact centre business as a discontinued operation (refer to note 8.3). Investor presentation A presentation for institutional investors and analysts hosted by Adolfo Hernandez, CEO and Pablo Andres, CFO, will be held at 09:00am BST, Tuesday 4 August 2026. This will be held in the Novotel, 3 Kingdom Street, Paddington London W2 6BD. A live webcast will also be available ( https://www.capita.com/investors ) and will subsequently be available on demand. The presentation slides will be published on our website at 07:00am and a full transcript will be available the next working day. Webcast link: https://webcast.openbriefing.com/capita-hy26/ For further information: Helen Parris, Director of Investor Relations [email protected] Stephanie Little, Head of Investor Relations [email protected] Capita press office T +44 (0) 2076 542 399 / [email protected] LEI no. CMIGEWPLHL4M7ZV0IZ88. Chief Executive Officer's review Overview We continue to make demonstratable and clear progress against our vision to become an AI-enabled business services partner. This is a pivotal year for our transformation agenda. We are building on foundations laid over the past two years, across a number of strategic initiatives to accelerate delivery and with measurable outcomes for all stakeholders. At the start of this year, we outlined our strategic initiatives for 2026 as simplification at scale, digital and AI-enabled transformation, cost and performance discipline and continuing our focus and investment on people and culture. We have made clear progress against these as we continue our transformation to a Better Capita, centred around four strategic themes; better technology, better delivery, better efficiencies and better company. In March, we announced the disposal of the Group's private sector contact centre business which completed on 31 July 2026. This transaction will allow Capita to significantly streamline its operations and investments and will be value accretive as we unlock overhead reduction and remove complexity from the Group. Better technology sits at the centre of our transformation. We are moving and evolving in line with the dynamic technology environment and the changing business process outsourcing and pension administration markets which continue to show significant opportunities for growth. Our sector knowledge and process expertise gives us a unique placement and the competitive advantage to deliver complex business solutions which standalone technology providers cannot provide. It was recently estimated by Boston Consulting Group that 70% of the value in AI comes from people and process knowledge which is a key strength of the Group. We orchestrate processes and solutions, built on data with our trusted teams and domain knowledge operating across a number of environments, including regulated industries. Our transformation and our technology strategy is driving better delivery and in the first six months of 2026 we have maintained KPI performance around 90% across the Group, excluding performance on the Civil Service Pension Scheme. We recognise that the service delivered on the Civil Service Pension Scheme has not been good enough since the transition in December 2025. We have the processes, automation and technology in place to work through the backlog and achieve service levels and we remain committed to working through the backlog as quickly as possible, protecting members, and ensuring new cases are processed within contractual service times. As previously announced, reflecting our continued efforts on this contract, and the impact to some services delivered in our pensions business, including the higher margin pension consulting business and delays in delivery of cost efficiency savings, in 2026 we expect a £25m - £40m adjusted operating profit impact and a £35m - £50m free cash flow impact, post wider Group mitigating actions. The Group has made significant progress in driving better efficiencies and in 2025 we reached our target of delivering £250m annualised cost savings. The contact centre disposal will allow us to deliver an additional £40m of annualised cost savings which will be delivered by the end of 2027 as we further streamline the business. In June, the Group extended and increased its revolving credit facility (RCF) to £325m, extending the expiry date of the facility from December 2027 to June 2029 (including the option for two additional one-year extensions). In July the Group issued $55m of US private placement notes, valued at £41m, net of swaps, with an average coupon rate of 7.54%. As part of these transactions, the Group also completed an amendment to the Group's interest cover covenant to within a range of 3.0x and 3.5x (from 4.0x) through the remaining term. This provides the Group with further optionality and flexibility on its transformation journey. Colleagues continue to be at the heart of everything we do, and we are building a better company where colleagues are building meaningful and long-lasting careers, across all levels of the organisation. I'd like to thank colleagues for their continued dedication and hard work through the Group's transformation and business improvement journey. There remain a number of challenges we face as a Group, but we are excited about the opportunity ahead and within the markets which we operate in. We are a trusted partner of the UK government and believe our skills and expertise remain very aligned with the new government. We are looking forward to further progress in the second half and the Group's Capital Market Event on 4 November where we will outline our future strategic ambition, medium-term financial targets and refreshed capital allocation priorities. Better technology Since 2024, we have exponentially increased the use of technology across the Group, scaling the use of AI and automation across core operations, improving productivity, decision-making and service quality. This year, our emphasis has pivoted from experimentation to adoption and, we are now embarking on agentification, building AI agents who are powering smarter and faster ways of working. We have nearly 500 agents now in use across the Group driving contract and internal efficiencies. For example on our contract with the Troubles Permanent Disablement Payment Scheme in Northern Ireland, we have developed three agentic agents, who support clinical assessors as part of the delivery solution, driving a high quality and more efficient service. In the first six months of this year, we have continued to build relationships and see benefits from our technology partnerships. In March, we announced a multi-year agreement with Snowflake, the AI Data Cloud Company, who are providing the Data Management and Intelligence layer within the Group's AI Catalyst Stack across our client facing operations, and achieved Snowflake's Select Partner status. This partnership allows us to embed standardised insight, governance cadence and measurable performance targets into the remaining contact centre operations in our contract portfolio. In April, we were the first European BPO company to launch a storefront on AWS Marketplace, allowing customers to easily find and procure 20 of Capita's solutions, reducing complexity and accelerating time to value. In June, we expanded our Salesforce collaboration which will deliver Agentforce, Salesforce's platform for deploying autonomous AI agents to automate customer service, sales and business processes and MuleSoft, integration and API management platform to clients across defence, education and other regulated industry clients. Internally, the Group's AI Catalyst Lab continues to be our innovation engine for AI solutions. Since inception, we have had over 750 ideas submitted for review, 25 taken into production and 10 now live for clients and internally. We've also built an AI agent, Catalyst Lab Idea Evaluation Expert (CLIVE), which streamlines the process of capturing and evaluating innovation ideas. As reported in a study by McKinsey this year, less than one in ten organisations have scaled agentic AI in any single function due to difficulty in measuring the benefits. We recently launched the Group's Forward Deployment Orchestrator (FDO) to help clients run AI-enabled processes safely and effectively after go-live, with a clear focus on adoption, performance and measurable operational results in the middle and back-office services. The FDO will help organisations scale AI beyond the pilot stage. We continue to use Capita as client zero as we drive efficiencies internally before rolling these out to drive client efficiencies. Following the rollout of colleague IT support services, we are now partnering with Databricks to drive superior finance analytics to create a more agile, efficient and data driven finance function. We are also transforming our legal case handling through AI, creating a front door for colleagues across the organisation to help colleagues get the right legal support first time with more consistent tracking and workflow. Security remains a key priority in our technology journey. This year, we evolved our Responsible AI Principles and introduced an AI Charter framework to ensure AI is deployed ethically, safely, and transparently, for both internal use and client delivery. This is supported by our AI Platform Guardrails and Executive-level governance through the AI, Cloud and Data Governance Council and enables responsible AI adoption at pace. Better delivery Our delivery this year has remained strong with an average KPI performance across the Group around 90%, excluding the Civil Service Pension Scheme. Operational highlights across the Group so far this year include: Delivering an AI-led customer service with a major customer, deploying Capita Contact.AI to utilise WhatsApp as a customer service channel, handling 12,000 conversations a month with 92% of these resolved by AI with no human intervention At the Fire Service College, we have rolled out virtual reality training to a number of fire stations, scaling existing training used at the Fire Service College and developed with firefighters to expand its reach In Public Service, Capita supported updated Cleaner Vehicle Discount arrangements for Transport for London including fully automating the allocation of discounts making the process easier and more efficient for users Also in Public Service, we have seen success with Microsoft Co-pilot enablement as a service with a number of local councils providing rapid deployments for services including using inbox.AI to improve the efficiency and management of inboxes In Pension Solutions, so far this year we have served over 9 million members and excluding the Civil Service Pension Scheme, completed 1.5 million cases with a quality score of 97% We recognise that the service delivered on the Civil Service Pension Scheme has not been good enough since the transition in December 2025. We have the processes, automation and technology in place to work through the backlog and we remain committed to working through the backlog as quickly as possible. On the contract in Public Service which was suspended by agreement in 2025, we continue to seek to achieve an appropriate resolution with the client. Elsewhere, detailed discussions in relation to the Royal Mail Pension Scheme are ongoing. In the meantime we will continue to work with all parties to ensure continuity and a smooth handover in line with the Cabinet Office's future alternative arrangements. Better efficiencies In 2025, we successfully met our target with actions taken to deliver £250m of annualised cost savings. Following the announcement for the disposal of the private sector contact centre business, we outlined our intention to deliver an additional £40m of annualised cost savings across 2026 and 2027 as a result of the operational simplification opportunity this disposal provided. As at 30 June 2026, we have taken actions that will deliver £8m of annualised cost savings, with an associated cash cost to achieve of £1.9m. These savings have been delivered through people and procurement savings. Although the phasing of the cost savings in the first half was lower than expected in the Pension Solutions business due to our continued focus on the Civil Service Pension Scheme contract, we remain on track to deliver these savings by the end of 2027. As part of the private sector contact centre disposal, the Group has retained three currently underutilised properties which have an associated lease liability of c. £65m and lease cost of c. £10m, per annum. There is a significant opportunity for the Group to deliver material cost savings from these leases and we are making good progress in our discussions to date. Better company Across 2026, our focus has been building on the strong foundations laid in recent years to become a better company. Our colleagues and their sector knowledge and process expertise are a critical part of delivering services to our clients. Last year, we launched a refreshed set of values which are shaping our culture and guiding Capita's strategic direction. As Capita transforms we are building a high-performance organisation, upskilling colleagues, equipping them with tailored training and development required to deliver change in the changing environment we operate within. Our AI Academy partnerships are delivering high-quality training through applied learning, and we continue to expand their reach. We now have 561 colleagues enrolled in AI apprenticeship programmes with Multiverse and QA, and 112 colleagues have completed their apprenticeships. Our internal mobility was 41%, up 11% from 2025, as we focus our support in building meaningful and long-lasting careers across Capita. The Group's 12 months attrition was unchanged at 17% as at the end of June, having fallen from over 30% in 2024. We expect this to reduce following the completed sale of the private sector contact centre business, which previously experienced higher levels of attrition. In the second half of the year, and as we look forward to 2027, we will continue to invest in leadership capability, data, AI & growth skills, strengthen change execution, and embed a performance culture that values accountability, collaboration and continuous improvement. Technology is improving the agility of our internal people function. This year the people function built and developed a people hub agent to support functional colleagues to deliver efficient outcomes on HR and people related queries. The use of this agent will be grown in the second half of the year and into 2027. Looking ahead to the second half of 2026, we will be refreshing the Group's wellbeing strategy and launching AI accreditations at scale through our successful growth academy. Elsewhere, the Group is supporting small and medium enterprises (SMEs) across the UK, building a supply chain which is agile and innovative while allowing SMEs to thrive. Capita now has around 10,000 SMEs across the Group ecosystem with c. 35% of supplier spend with SMEs. Growth In the first six months of 2026, the Group secured contracts with a Total Contract Value (TCV) of £998.1m, up from £870.8m in the same period in 2025, with the best H1 TCV performance in Public Service since 2021. The In Year Revenue associated with these contracts is £274.1m, down 15% from the prior year, reflecting the transition period associated with wins, including Synergy which is expected to go live in the second half of 2027. There were material wins with new scopes with the Department for Work & Pensions delivering project Synergy and the Army Collective Training Service and a significant renewal in our Pension Solutions business with a TCV of £137m. The win rate across all opportunities increased slightly to 84% from 82% in 2025 with a strong performance in renewals and expansions of scope - we saw a 100% renewal rate in the first half and 98% win rate in expansions of scope. The Group's book to bill ratio was 1.1x, up from 1.0x in the first six months of 2026, with a strong performance across both Public Service and Pension Solutions at 1.1x and 1.8x respectively. As at 30 June 2026, the Group had an unweighted pipeline of £24.4bn (31 December 2025: £18.6bn). This increase reflects the strong inflow of high-quality opportunities, supported by improved sales execution and increasing demand for our technology-enabled solutions in the large, growing and resilient markets in which we operate. A significant proportion of this pipeline relates to opportunities within our Public Sector division. For the second half of the year, based on the opportunities which are expected to close to between 1 July 2026 and 31 December 2026, the Group's weighted pipeline stood at over £1bn, demonstrating significant opportunity. At the start of July, the Group secured a five year renewal with Transport for London, delivering the Road User Charging and Ultra Low Emission Zone schemes with a TCV of £425m. Material opportunities for second half of the year and into 2027 include opportunities with the Home Office, Ministry of Defence and Department for Work & Pensions. The Group's order book at 30 June 2026 was £4,010.9m, up 6.5% from £3,765.3m as at 31 December 2025, reflecting £1,000.6m of wins, including Synergy Business Process Services which is due to go live in the second half of 2027, offset by £711.2m of revenue recognised and £43.8m from contract terminations. Strategic simplification In March 2026, we announced the disposal of the Group's private sector contact centre business for consideration of £1 with potential future consideration of up to £61.5m, payable from 2027 to 2030, based on the future performance and cash availability of the disposed entity. The sale completed on 31 July and the fair value of the contingent consideration at the date of disposal has been estimated at £9m. This is a continuation of the strategic simplification of the Group, focusing on areas where we deliver complex, differentiated middle and back-office services in large growing markets where demand for technology-enabled transformation is accelerating. The transition for the remaining closed book Life & Pensions clients, as announced in December 2025, remains on track. We expect the migrations for these contracts to be completed across five years to 2030. This is a major part of the Group's manage for value strategy and will eliminate the average annual cash loss of £20m from these contracts. Financial results - revenue and profit Adjusted revenue 1 increased 1.6% to £906.4m, reflecting growth in Public Service and Pension Solutions, partly offset by a decline in Regulated Services, driven by the non-repeat of a £19m prior year contract exit benefit, and a marginal decline in the retained Contact Centre business. Reported revenue reduced 1.3% to £948.3m, reflecting the aforementioned movements, and the reduction in revenue from contracts in closed book Life & Pensions as we exit this business. Adjusted operating profit 1 reduced 31.6% to £32.2m. The reduction reflected the additional costs incurred on the Civil Service Pension Scheme contract in Pension Solutions, and the non-repeat of a £6m benefit from the prior year contract exit in Regulated Services; partly offset by the benefit from the cost reduction programme in 2025. The Group delivered an adjusted operating margin 1 of 3.6%, compared to 5.3% in the comparative period. Reported operating profit increased to £25.9m, reflecting the above movements and costs associated with business exits of £1.5m, costs associated with the simplification programme of £4.1m and the 2023 cyber incident of £0.7m. Financial results - free cash flow and net debt Operating cash flow excluding business exits 1 was £56.9m, down 31.4% compared to the first half of 2025 reflecting the adjusted operating profit 1 movement above, the continued investment in the Civil Service Pension Scheme, mobilisation costs associated with the newly won Synergy contract and the unwind of favourable timing and the completion of a major contract milestone in the prior year in Public Service. Free cash flow excluding business exits 1 was £3.5m (2025: £25.2m), reflecting the flow through of the decrease in operating cash flow excluding business exits 1 , an increase in capital expenditure and interest/tax paid, partly offset by a reduction in net capital lease payments. Free cash outflow 1 was £23.6m, reflecting the above movements and £27.1m free cash outflow from business exits in the first half of the year. Net financial debt (pre IFRS 16) was £200.4m, an increase of £57.0m since 31 December 2025, reflecting the free cash outflow 1 in both the second half of 2025 and the first half of 2026, and the cash outflow of the private sector contact centre business presented as a discontinued operation. Net debt, including IFRS 16 was £499.7m. Full year outlook For the full year, we expect adjusted revenue 1 for the Group and Public Service to be broadly flat. We expect growth in Pension Solutions which will offset declines in the retained Contact Centre business and Regulated Services. We expect a reduction in adjusted operating margin 1 reflecting the additional costs incurred as a result of the Civil Service Pension Scheme contract and residual overheads as the business transitions to a simpler operating model following the private sector contact centre disposal. Based on the additional costs incurred, we expect free cash flow excluding business exits 1 to be an outflow of between £35m - £50m, reflecting the increased costs associated with the Civil Service Pension Scheme contract, post the wider mitigating actions being taken across the Group. We are excited about the future and the opportunities which exist in the growing and resilient markets which we operate in. We look forward to further updating the market on the strategic priorities and future financial targets for the Group at our Capital Market Event on 4 November. Definitions and calculations of non-IFRS measures (alternative performance measures) can be found in the Appendix Gartner Divisional performance review The following divisional financial performance is presented on an adjusted revenue 1 and adjusted operating profit 1 basis. Reported profit is not included, because the Board assesses divisional performance on adjusted results. The basis of preparation of the adjusted figures and KPIs is set out in the Alternative Performance Measures (APMs) summary in the appendix to this statement. Public Service Public Service is the number one strategic supplier of Software and IT Services (SITS) 2 and business process services (BPS) to the UK Government. We are a trusted partner to the government, delivering complex solutions and vital services across a variety of sectors and government departments. The division is structured around three market verticals: Local & Regional Partnerships, Central Government and Defence & National Preparedness. Markets and growth drivers Digital BPS continues to be an area of strong growth, aligned to the Government's ambition to improve productivity and reduce backlogs while modernising citizen services using technology and AI-enabled delivery. The Public Interest Test, which takes effect April 2027, is principally a procurement policy change the impact of which will emerge gradually through future sourcing decisions rather than existing contracts. New Public Procurement Statements place greater emphasis on impact to the British economy, whole-life value, service quality, resilience and delivery capability, areas in which Capita's complex, technology-enabled operating models and capability are well aligned. Our colleagues in the Public Service division have deep sector process knowledge and domain expertise which, alongside our technology partnerships strategy, means the division delivers effective and efficient public services. As we continue to increase our adoption and implementation of AI delivery methods, we are utilising an outcome-led model and we continue to see success in delivering and driving the implementation of a number of the Government's priorities. For example delivering health assessments and defence and national resilience services. Operational performance In the first six months of 2026, the division's average KPI performance was consistent with the same period in the prior year at around 90%. This is building on the division's strong customer net promotor score (cNPS) performance at year end of +37 points, which was the fourth annual increase in cNPS. Delivery highlights so far this year include: Public Service maintained its long-standing Armed Forces Covenant commitments through the first half of 2026, sustaining support for serving personnel, reservists, veterans and their families In our contract delivering the Troubles Permanent Disablement Payment Scheme (TPDPS), Clinical Assessors are being supported by three AI agents, across knowledge, report quality and managing incoming emails. These agents are improving consistency, quality and efficiency of delivery Through our Westminster contract partnership we continued to deliver measurable social value under the Social Value Model framework, including a donation to Caxton Youth supporting disabled children and young people in the local community The Gas Safety Register launched a student engagement trial to support future gas engineers, helping students navigate the path to Gas Safe registration through practical guidance and industry access On our contract to deliver the Disabled Students' Allowance, we continue to provide integrated support to over 30,000 disabled students, improving access and success in higher education On the contract which was suspended by agreement in 2025, we continue to seek to achieve an appropriate resolution with the client. Growth The division secured contracts with a TCV of £800.7m in the first six months of 2026, up 0.7% from the same period in 2025, and delivering its best TCV performance in H1 since 2021. There were material wins including Synergy Business Process Services and the Army Collective Training Service, both of which are material new scopes for the division. These wins delivered a divisional book to bill of 1.1x (2025: 1.1x) with the divisional win rate maintained at 81%. The division performed strongly in securing new and expanded scopes with a win rate of 80% and 98% respectively. The division also maintained its strong renewal rate of 100%. The In Year Revenue associated with wins in the first half was £217m (2025: £291m), with the go-live and associated revenue recognition on the material Synergy Business Process Services contract expected to commence in the second half of 2027. We continue to grow the pipeline as we see benefits from our refreshed growth strategy and sustain efforts to identify high quality opportunities across all markets we operate in. Since 31 December 2025, the total unweighted pipeline has grown to £23.5bn from £17.8bn, demonstrating the material opportunity ahead for Public Service. The division's weighted pipeline as at 30 June 2026 sits at £2.1bn, up slightly from £2bn at the end of December. We had a strong start to the second half of 2026, securing contracts with Transport for London with a TCV of £425m and UK Health Security Agency with a TCV of £36m. There are material opportunities for second half of the year with the Home Office, Ministry of Defence and Department for Work & Pensions. The order book at 30 June 2026, was £2,941m (31 December 2025: £2,720m), with revenue recognised in the first half more than offset by the benefit of contract wins, including Synergy Business Process Services and Army Collective Training Service. Divisional financial summary 2026 2025 % change Adjusted revenue 1 (£m) 729.2 711.8 2.4% Adjusted operating profit 1 (£m) 57.7 57.2 0.9% Adjusted operating margin 1 (%) 7.9% 8.0% Adjusted EBITDA 1 (£m) 73.9 72.3 2.2% Operating cash flow excluding business exits 1 (£m) 37.3 52.2 (28.5)% Order book (£m) (comparative at 31 December 2025) 2,940.8 2,720.1 8.1% Total contract value secured (£m)* 800.7 794.8 0.7% Adjusted revenue 1 saw growth of 2.4% to £729.2m, reflecting the benefit from increased volumes in the Local & Regional Partnerships transactional business and on the Disabled Students Allowance contract, growth in the Transport for London contract, including the Silvertown Tunnel, partly offset by the flow through of prior year contract losses and lower recoveries on the Smart DCC contract. Adjusted operating profit 1 was broadly similar at £57.7m delivering an adjusted operating margin of 7.9%. The operating profit performance reflects revenue growth and savings delivered by the cost reduction programme in 2025, partly offset by flow through of prior year contract losses, lower cost recoveries on the Smart DCC contract, continued investment in AI, hyperscalers and data capabilities, contract mobilisation costs, and an increase in the allocation of central functions costs as a consequence of the reduction in adjusted operating profit 1 in Pension Solutions. Operating cash flow excluding business exits 1 was £37.3m, down from £52.2m in the prior period. The decrease reflected the prior year completion of a major contract milestone, the unwind of favourable timing of receipts in 2025, and mobilisation costs on the Synergy Business Process Services contract. Outlook We expect adjusted revenue 1 to be broadly flat, reflecting the impact of previously announced losses and timing of the benefit of contract wins in 2026, which commence in the second half of 2027. For the year as a whole, we expect adjusted operating profit 1 to be consistent with the prior year. Contact Centre - not included within the transaction perimeter This division now comprises the retained elements of the Contact Centre division following the sale of the private sector services which was announced in March 2026. This includes a number of contracts, including the Group's long standing BBC contract, delivering the administration and collection of the TV licence and a number of other public sector contracts. This division also includes a number of commercial service arrangements related to previously executed disposals. The operational performance in the retained contracts of this division across the year has remained consistent. Going forwards the retained contracts will be re-presented within other segments of the Group. We will provide further detail on the future operating segments of the Group and proforma data as part of the Group's Capital Market Event later this year. Divisional financial summary 2026 2025 % change Adjusted revenue 1 (£m) 67.1 71.4 (6.0)% Adjusted operating profit 1 (£m) 1.2 3.3 (63.6)% Adjusted operating margin 1 (%) 1.8% 4.6% Adjusted EBITDA 1 (£m) 4.5 8.0 (43.8)% Operating cash flow excluding business exits 1 (£m) 43.8 44.0 (0.5)% Order book (£m) (comparative at 31 December 2025) 430.9 473.6 (9.0)% Total contract value secured (£m) - - - Adjusted revenue 1 reduced 6.0% to £67.1m, reflecting the impact of lower project work and the accounting impact of the extension of a major contract. Adjusted operating profit 1 reduced to £1.2m reflecting flow through of lower revenue and continued investment in AI, hyperscalers and data capabilities, and higher allocation of central functions costs, partly offset by savings delivered through the cost reduction programme in 2025. Operating cash flow excluding business exits 1 was £43.8m with a cash conversion of 973% driven by the usual phasing of significant cash receipts from a customer that delivers inflows for the year in the first half. Outlook We expect a low single digit adjusted revenue 1 reduction in the retained Contact Centre business reflecting the impact of project work and accounting impact of the extension of a major contract, with a small reduction in adjusted operating margin 1 reflecting this revenue reduction. Pension Solutions Pension Solutions is our pension administration and consulting business, with a focus on defined benefit schemes. It administers over 400 private and public sector pension schemes based in the UK, servicing over 7 million scheme members. Pension Solutions also provides consulting services including expert advisory, actuarial, investment communications and transformation services, helping pension scheme stakeholders manage risk, achieve strategic objectives and enhance member outcomes to its clients via its 500 expert pension consultants, which accounts for around one-third of its revenue. Markets and growth drivers The pension industry is shifting towards an end-to-end digital experience with users looking for 24/7 service offering, driven by increased automation and self-service options. Changing legislation and regulatory requirements within the UK pension market is growing demand on data and remediation services, particularly within our consulting business. We have been investing in our digital pensions platform and in 2025 went live with our Digital Pension Solutions tool with a number of further client roll outs planned in 2026 and 2027. This tool in the long term will allow us to deliver digitally-enabled pension administration at significant scale, allowing members a flexible service and will act as a differentiator for our Pension Solutions business. Operational performance The division's average KPI performance in the first six months of 2026 was 94%, excluding the Civil Service Pension Scheme contract, similar to the 95% performance in the same period in 2025. In December 2025, Pension Solutions started to administer the Civil Service Pension Scheme. We recognise that as a result of operational issues, our performance has not been good enough since the contract began and we are sorry for the distress and inconvenience experienced by impacted members. We have the processes, automation and technology in place to work through the backlog. We remain committed to working through the backlog as quickly as possible, protecting members, and ensuring new cases are processed within contractual service times. Elsewhere within the division, the Pension Solutions team have served over 7 million scheme members, worked on over 22 Triennial Valuations for clients across the first half of the year and delivered c. 100 communication projects for our clients. The division's Hartlink Online Platform has seen positive engagement in the first half of the year with over 115,000 registrations and more than 880,000 logins as members continue with self service activities. Using the self service functionality of the tool we've seen more than 110,000 personal detail updates and more than 63,000 retirement online views. Growth So far in the first six months of 2026, Pension Solutions has secured contracts with a TCV of £196.7m up 161.2% from the prior year. The In Year Revenue associated with these wins was £57m, up from £30m in the first six months of 2025. Overall the division's book to bill was 1.8x, up from 0.9x in 2025. Material wins in the first half of the year included a client renewal worth £137m and a four year extension with the Environment Agency with a TCV of £14m. Pension Solutions saw a win rate of 99% across all opportunities in 2026, up from 94% in the prior year. As at 30 June, the division's unweighted pipeline was £0.5bn with a £164m unweighted pipeline for the second half year, with a mix of renewals and expansions of scope. There are material opportunities in the second half of the year and into 2027 with the majority being new customers or expansions of scope. The divisional order book at 30 June 2026 stood at £530.9m, up 14.1% from 31 December 2025, reflecting the division's strong TCV performance which more than offset revenue recognised in the first half of the year. Divisional financial summary 2026 2025 % change Adjusted revenue 1 (£m) 107.4 86.1 24.7% Adjusted operating (loss)/profit 1 (£m) (3.6) 9.7 n/a Adjusted operating margin 1 (%) (3.4)% 11.3% Adjusted EBITDA 1 (£m) 2.0 13.3 (85.0)% Operating cash flow excluding business exits 1 (£m) 5.4 9.3 (41.9)% Order book (£m) (comparative at 31 December 2025) 530.9 465.1 14.1% Total contract value secured (£m) 196.7 75.3 161.2% Adjusted revenue 1 grew 24.7% to £107.4m, reflecting the impact of the Civil Service Pension Scheme contract and increased volumes on existing contracts. Adjusted operating loss 1 of £3.6m reflects additional costs incurred on the Civil Service Pension Scheme contract as operational issues are resolved, and lower consulting volumes due to redeployment of resources to the Civil Service Pension Scheme contract, partly offset by lower allocation of central functions costs as a consequence of the reduction in adjusted operating profit. Operating cash flow excluding business exits 1 was £5.4m a decrease from £9.3m in the prior year due to additional costs on the Civil Service Pension Scheme contract. The improved operating cash conversion reflects receipt of a 2025 delayed milestone payment. Outlook Reflecting the growth from the annualisation of the Civil Service Pension Scheme, we expect Pension Solutions to deliver mid-teen adjusted revenue 1 growth. Reflecting the additional costs incurred as a result of the Civil Service Pension Scheme contract and remediation, we expect the division to make an adjusted operating loss 1 in 2026. Regulated Services The Regulated Services division comprises our Mortgage Software business which, as previously announced, we are managing for value. Following a contract termination in the first half of the prior year, this business now includes a small number of remaining contracts. Divisional financial summary 2026 2025 % change Adjusted revenue 1 (£m) 2.7 22.9 (88.2)% Adjusted operating profit 1 (£m) 0.5 5.6 (91.1)% Adjusted operating margin 1 (%) 18.5% 24.5% Adjusted EBITDA 1 (£m) 0.5 6.0 (91.7)% Operating cash flow excluding business exits 1 (£m) 1.5 5.0 (70.0)% Order book (£m) (comparative at 31 December 2025) 3 108.3 106.5 1.7% Total contract value secured (£m) 0.7 0.7 -% Adjusted revenue 1 decreased 88.2% to £2.7m reflecting the non-repeat of the £19m contract termination in the prior year. Adjusted operating profit 1 was £0.5m, a decrease of 91.7%, reflecting the non-repeat of a £6m benefit from a termination fee received from the contract exit in the Mortgage Software business in the prior year. Operating cash flow excluding business exits 1 was £1.5m, down from £5.0m in the prior year due to the one-off £6m termination fee received from the contract exit in our Mortgage Software business in the prior year. Outlook We expect the adjusted revenue trends to continue in the second half with the division broadly breakeven in 2026. Refer to alternative performance measures in the appendix TechMarketView Both 2026 and the 2025 comparative include the closed book Life & Pensions business whose financial results are reported within business exits Chief Financial Officer's review Financial highlights - continuing operations 30 June 2026 30 June 2025 2 YoY change Revenue Adjusted revenue 1 £948.3m £906.4m £960.5m £892.2m (1.3)% 1.6% Operating profit Operating margin 1 Adjusted operating profit 1 Adjusted operating margin 1 £25.9m 2.7% £32.2m 3.6% £18.4m 1.9% £47.1m 5.3% 40.8% 80bps (31.6)% (170)bps EBITDA 1 Adjusted EBITDA 1 £56.7m £59.5m £49.3m £73.9m 15.0% (19.5)% Profit before tax Adjusted profit before tax 1 £4.1m £12.5m £1.7m £29.1m 141.2% (57.0)% Basic (loss)/earnings per share Adjusted basic earnings/(loss) per share 1 (3.60)p 13.38p (13.59)p (6.09)p (73.5)% n/a Operating cash flow 1 Operating cash flow excluding business exits 1 Adjusted operating cash conversion 1 Free cash flow 1 Free cash flow excluding business exits 1 £35.5m £56.9m 95.6% £(23.6)m £3.5m £67.7m £82.9m 112.2% £1.1m £25.2m (47.6)% (31.4)% (16.6)% n/a (86.1)% Net debt 1 Net financial debt (pre-IFRS 16) 1 £(499.7)m £(200.4)m £(412.2)m £(87.0)m £(87.5)m £(113.4)m Definitions and calculations of non-IFRS measures (alternative performance measures) can be found in the Appendix. 2025 comparatives have been re-presented from those previously published to reflect the private sector contact centre business as a discontinued operation (refer to note 8.3). Overview The adjusted revenue 1 growth of 1.6% reflected growth in Public Service and Pension Solutions, partly offset by a decline in Regulated Services, driven by the non-repeat of a £19m prior year contract exit benefit, and a small decline in the retained Contact Centre business. The reduction in adjusted operating profit 1 reflected the additional costs incurred on the Civil Service Pension Scheme contract in Pension Solutions, and the non-repeat of a £6m benefit from the prior year contract exit in Regulated Services; partly offset by the benefit from the cost reduction programme in 2025. Adjusted basic earnings per share 1 increased reflecting the decrease in adjusted profit before tax 1 and the adjusted income tax credit of £2.6m compared to the prior year charge of £35.7m. Revenue decreased 1.3% as the growth in adjusted revenue 1 was more than offset by the reduction in the revenue of those businesses which the Group is exiting, primarily the closed book Life & Pensions business. Operating profit increased to £25.9m reflecting the reduction in adjusted operating profit 1 detailed above, more than offset by lower costs to deliver the simplification programme in 2026 than the costs to deliver the cost reduction programme in the prior year (2026: £4.1m; 2025: £16.5m). Profit before tax of £4.1m (2025: profit £1.7m), reflected the increase in operating profit detailed above, partly offset by an increase in net finance costs reflecting higher average net debt. The lower basic loss per share of 3.60p (2025: loss 13.59p) reflected the increase in profit before tax and the lower income tax charge of £9.3m in the current period (2025: charge £17.0m). The decrease in operating cash flow excluding business exits 1 and adjusted operating cash conversion 1 reflected the reduction in adjusted operating profit 1 , continued investment in the Civil Service Pension Scheme contract, mobilisation on the Synergy Business Process Services contract, prior year favourable timing and completion of a major contract milestone in Public Service. Free cash flow excluding business exits 1 in the six months ended 30 June 2026 was an inflow of £3.5m (2025: inflow £25.2m), reflecting the flow through of the decrease in operating cash flow excluding business exits 1 , and increases in net capital expenditure, and interest and tax paid, partly offset by a decrease in the capital element of lease rental payments, and a decrease in the cash outflow from the costs to deliver the cost reduction programme. The decrease in free cash flow 1 reflects the above decrease in free cash flow excluding business exits 1 and an increased cash outflow from business exits. Following the announcement in March 2026 that the Group had agreed to sell its private sector contact centre business, which is primarily front-office facing, the business met the criteria to be presented as a discontinued operation and as held-for-sale. The sale completed on 31 July 2026. This transaction unlocks a material overhead reduction as further complexity is removed from the Group as it will focus on complex, differentiated middle and back-office services going forward. We have commenced our simplification programme as the disposal separation activities continue, and as at 30 June 2026, we have taken action which will deliver £8m of annualised cost savings, against our target to deliver £40m of annualised cost savings by the end 2027, with an associated cost to achieve the full savings of c.£20m. Liquidity as at 30 June 2026 was £350.7m, made up of £278.0m of undrawn committed revolving credit facility (RCF) and £72.7m of unrestricted cash and cash equivalents net of overdrafts. In June 2026, the Group extended and increased its RCF to £325m, replacing the previous RCF (£250m) and additional committed facility (£75m), and extending the expiry date of the facility to June 2029 (including the option for two additional one-year extensions). In July 2026, the Group issued $55m of US private placement loan notes, valued at £41m, net of swaps, with an average coupon rate of 7.54%. The notes rank pari passu with the Group's existing senior indebtedness. This provides the Group further optionality on its transformation journey. The RCF was £47.0m drawn at 30 June 2026 (31 December 2025 undrawn). The increase in net debt and net financial debt (pre-IFRS 16) 1 since 30 June 2025 reflects the free cash outflow 1 in both the second half of 2025 and the first half of 2026, and the cash outflow of the private sector contact centre business presented as a discontinued operation. Financial review Adjusted results Capita reports results on an adjusted basis to aid understanding of business performance. The Board has adopted a policy of disclosing separately those items that it considers are outside the underlying operating results for the particular period under review and against which the Group's performance is assessed internally. In the Board's judgement, these items need to be disclosed separately by virtue of their nature, size and/or incidence for users of the financial statements to obtain an understanding of the financial information and the underlying in-period performance of the business. In accordance with the above policy, the trading results of business exits, along with the non-trading expenses (including the income statement charges in respect of major cost reduction programmes) and gain or loss on disposals, have been excluded from adjusted results. To enable a like-for-like comparison of adjusted results, the 2025 comparatives have been re-presented to exclude business exits in the second half of 2025 and the first six months of 2026. As at 30 June 2026, the primary business that met this threshold and was classified as business exits and therefore excluded from adjusted results in both 2026 and 2025 was closed book Life & Pensions. Reconciliations between adjusted and reported operating profit and profit before tax on a continuing basis, and free cash flow excluding business exits, are provided on the following pages and in the notes to the financial statements. During the year, the Board approved a plan to dispose of the Group's private sector contact centre business, which formed a major part of the Contact Centre segment. The sale completed on 31 July 2026, following the period end. For H1 2026, the net results of the private sector contact centre business are presented as a discontinued operation in the Group income and cash flow statements, for which the comparatives have been re-presented. The assets and liabilities of the private sector contact centre business disposal group are presented separately in the Group balance sheet as held-for-sale. For further details, refer to notes 8.3 and 8.4. Adjusted revenue 1 Public Service £m Contact Centre £m Pension Solutions £m Regulated Services £m Total £m Six months ended 30 June 2025 711.8 71.4 86.1 22.9 892.2 Adjusted revenue bridge by division Capita Experience Net increase/(reduction) 17.4 (4.3) 21.3 (20.2) 14.2 Six months ended 30 June 2026 729.2 67.1 107.4 2.7 906.4 Adjusted revenue 1 increased 1.6% and was impacted by the following: Public Service (2.4% growth): benefit from increased volumes in Local & Regional Partnerships transactional business and on the Disabled Students Allowance contract, growth in the Transport for London contract, including the Silvertown Tunnel programme, partly offset by the flow through of prior year contract losses and lower recoveries on the Smart DCC contract; Experience: Contact Centre (6.0% reduction) : reflected lower project work and the accounting impact of the extension of a major contract; Pension Solutions (24.7% growth) : impact of the Civil Service Pension Scheme contract and increased volumes on our existing contracts; and Regulated Services (88.2% reduction) : non-repeat of the £19m one-off benefit from a contract exit in the Mortgage Software business in the prior year. Order book The Group's consolidated order book was £4,010.9m at 30 June 2026 (31 December 2025: £3,765.3m). Additions from contract wins, scope changes and indexations in 2026 (£1,000.6m), including wins of the Synergy Business Process Services and Army Collective Training System contracts, a renewal with a major client within Pension Solutions, and expanded scope on the Primary Care Support England contract, were offset by the reduction from revenue recognised in the period (£711.2m), and contract terminations (£43.8m), including the Royal Mail Pension Scheme in Pension Solutions. Adjusted operating profit 1 Public Service £m Contact Centre £m Pension Solutions £m Regulated Services £m Capita plc £m Total £m Six months ended 30 June 2025 57.2 3.3 9.7 5.6 (28.7) 47.1 Adjusted operating profit bridge by division Capita Experience Net growth/(reduction) 0.5 (2.1) (13.3) (5.1) 5.1 (14.9) Six months ended 30 June 2026 57.7 1.2 (3.6) 0.5 (23.6) 32.2 Adjusted operating profit 1 decreased in the six months ended 30 June 2026 driven by the following: Public Service: reflects revenue growth and savings delivered by the cost reduction programme in 2025, partly offset by flow through of prior year contract losses, lower cost recoveries on the Smart DCC contract, continued investment in AI, hyperscalers and data capabilities, contract mobilisation costs, and an increase in the allocation of central functions costs as a consequence of the reduction in adjusted operating profit 1 in Pension Solutions; Experience: Contact Centre: reflects the flow through of lower revenue, and continued investment in AI, hyperscalers and data capabilities, and higher allocation of central functions costs, partly offset by savings delivered through the cost reduction programme in 2025; Pension Solutions: reflects additional costs incurred on the Civil Service Pension Scheme contract as operational issues are resolved and lower consulting volumes due to redeployment of resources to the Civil Service Pension Scheme contract, partly offset by lower allocation of central functions costs as a consequence of the reduction in adjusted operating profit 1 ; Regulated Services: £6m benefit from termination fee received from the contract exit in the Mortgage Software business in the prior year; and Capita plc : benefits from the cost reduction programme. Note that the central functions costs that were allocated to the private sector contact centre business within the Contact Centre segment have been reallocated to the Capita plc segment. These stranded costs are being addressed as part of the £40m cost saving programme by the end of 2027. Adjusted profit before tax Adjusted profit before tax 1 reduced to £12.5m (2025: £29.1m), reflecting the above decrease in adjusted operating profit and an increase in net finance costs included within adjusted profit (2026: £19.7m; 2025: £18.0m). Adjusted tax credit The adjusted income tax credit for the period was £2.6m versus a charge of £35.7m in the comparative period, primarily as a result of an increase in deferred tax asset recognition that is attributable to the adjusted results in 2026. Operating cash flow excluding business exits 1 Capita Experience Operating cash flow excluding business exits 1 by Public Contact Pension Regulated Capita division Service Centre Solutions Services plc Total £m £m £m £m £m £m Six months ended 30 June 2025 52.2 44.0 9.3 5.0 (27.6) 82.9 Net reduction (14.9) (0.2) (3.9) (3.5) (3.5) (26.0) Six months ended 30 June 2026 37.3 43.8 5.4 1.5 (31.1) 56.9 Operating cash conversion 1 six months ended 30 June 2025 72.2% 550.0% 69.9% 83.3% 107.4% 112.2% Operating cash conversion 1 six months ended 30 June 2026 50.5% 973.3% 270.0% 300.0% 145.3% 95.6% The decrease in operating cash flow excluding business exits 1 and operating cash conversion 1 in 2026 driven by the following: Public Service: decrease reflected prior year completion of a major contract milestone, the unwind of favourable timing of receipts in 2025, and mobilisation costs on the Synergy Business Process Services contract; Experience: Contact Centre: operating cash conversion 1 was driven by the usual phasing of significant cash receipts from a customer that delivers inflows for the year in the first half; Pension Solutions: decrease in operating cash flow excluding business exits 1 reflected the additional costs on the Civil Service Pension Scheme contract. The improved operating cash conversion reflects receipt of a 2025 delayed milestone payment; Regulated Services: termination fee received from the contract exit in our Mortgage Software business in the prior year; and Capita plc : increase reflected the repayment of the non-recourse trade receivables financing arrangement during 2026 and timing of supplier payments, partly offset by the benefit from the cost reduction programme. Cash generated from operations and free cash flow Adjusted operating profit to free cash flow excluding business exits 1 30 June 2026 £m 30 June 2025 £m Adjusted operating profit 1 Add: depreciation/amortisation and impairment of property, plant and equipment, right-of-use assets and intangible assets 32.2 27.3 47.1 26.8 Adjusted EBITDA 1 59.5 73.9 Working capital (4.7) 16.0 Non-cash and other adjustments 2.1 (7.0) Operating cash flow excluding business exits 1 56.9 82.9 Adjusted operating cash conversion 1 96% 112% Simplification programme (1.9) - Cost reduction programme (2.1) (15.4) Cyber incident (1.5) 1.1 Cash generated from operations excluding business exits 1 51.4 68.6 Net capital expenditure (15.4) (13.0) Interest/tax paid (21.1) (17.9) Net capital lease payments (11.4) (12.5) Free cash flow excluding business exits 1 3.5 25.2 The working capital outflow is principally driven by a lower net inflow from deferred income and contract fulfilment assets, reflecting continued investment in the Civil Service Pension Scheme contract, mobilisation costs on the Synergy Business Process Services contract, prior year favourable timing and completion of a major contract milestone in Public Service. Non-cash and other adjustments include movement in provisions, and amendments and early termination of leases. Cash generated from operations excluding business exits 1 reflects the above and the reduction in adjusted operating profit 1 , partly offset by a decrease in the cash outflow from the costs to deliver the cost reduction programme. Although the programme was concluded at the end of 2025, the cash outflow in the period represents costs to deliver the savings that were accrued or provided for at the end of 2025 and settled in the first half of 2026. Free cash flow excluding business exits 1 for the six months ended 30 June 2026 was an inflow of £3.5m (2025: inflow £25.2m), reflecting the flow through of the decrease in cash generated from operations excluding business exits 1 , an increase in net capital expenditure with the continued investment in contract delivery with new technology solutions and cyber capabilities, and an increase in interest and tax paid, partly offset by a decrease in the capital element of lease rental payments as the Group continued to rationalise its property estate. The increase in interest and tax paid reflected higher average net debt, and timing of net tax payments. Reported results (continuing operations) Adjusted to reported profit As noted above, to aid understanding of our underlying performance, adjusted operating profit 1 and adjusted profit before tax 1 exclude a number of specific items, including the amortisation and impairment of acquired intangibles and goodwill, the impact of business exits, the impact of the simplification programme and the 2023 cyber incident, and in the prior year, the impact of the cost reduction programme. Adjusted 1 to reported results bridge Operating profit/(loss) Profit/(loss) before tax 30 June 2026 £m 30 June 2025 £m 30 June 2026 £m 30 June 2025 £m Adjusted 1 32.2 47.1 12.5 29.1 Net finance (expense)/income - - (1.5) 3.0 Business exits (1.5) (9.2) (2.1) (10.9) Simplification programme (4.1) - (4.1) - Cost reduction programme - (16.5) - (16.5) Cyber incident (0.7) (3.0) (0.7) (3.0) Reported (continuing operations) 25.9 18.4 4.1 1.7 Business exits Business exits include the effects of businesses that have been sold or exited during the period and the results of businesses held-for-sale at the reporting date. In accordance with our policy, the trading results of these businesses, along with the non-trading expenses and gain on disposal, were included in business exits and therefore excluded from adjusted results. To enable a like-for-like comparison of adjusted results, the 2025 comparatives have been re-presented to exclude businesses classified as business exits from 1 July 2025 to 30 June 2026. At 30 June 2026 business exits primarily comprised the closed book Life & Pensions business, following the Group reaching agreement in December 2025 for the remaining two legacy evergreen contracts, with its last client, Royal London, to be transitioned back. Further detail of these business exits is provided in note 8.1 to the condensed consolidated financial statements. Simplification programme The sale of the private sector contact centre business, which is primarily front-office facing, enables the Group to unlock a material overhead reduction as further complexity is removed as the Group will focus on complex, differentiated middle and back-office services going forward. Actions are being taken to deliver annualised savings of approximately £40m across 2026 and 2027. The anticipated associated cash cost to achieve these savings is c.£20m. A charge of £4.1m has been recognised in the six months ended 30 June 2026 for the costs to deliver the simplification programme. This primarily comprises redundancy cost incurred to deliver a reduction in headcount. Cost reduction programme The Group initiated a multi-year cost reduction programme in November 2023 with, following subsequent extensions, a final target of annualised savings of £250m. These savings were achieved by the end of 2025 and no further expenses to deliver this cost reduction programme are expected (30 June 2025: charge of £16.5m). Cyber incident A charge of £0.7m has been recognised in the six months ended 30 June 2026 in relation to the March 2023 cyber incident (2025: charge of £3.0m, which was net of insurance receipts). Further detail of the specific items charged in arriving at reported operating profit and profit before tax for 2026 is provided in note 4 to the condensed consolidated financial statements. Reported tax charge The reported income tax charge for the period of £9.3m reflects the impact of other non-underlying costs which more than offset the deferred tax asset recognised in the period. The comparative period income tax charge of £17.0m reflected the impact of excluding business exits from the 2025 profit forecast, which would increase the amount of deferred tax asset recognised. Free cash flow 1 to free cash flow excluding business exits 1 30 June 2026 £m 30 June 2025 £m Free cash flow 1 (23.6) 1.1 Business exits 27.1 24.1 Free cash flow excluding business exits 1 3.5 25.2 Free cash flow 1 was lower than free cash flow excluding business exits 1 reflecting the free cash outflows from business exits. Discontinued operation In March 2026, the Group agreed to sell its private sector contact centre business to Inspirit Capital and the disposal completed on 31 July 2026. As at 30 June 2026 this business was deemed to have met the threshold to be treated as held-for-sale and presented as a discontinued operation. With this sale, the Group exits the majority of its front-office operations to focus on complex, differentiated middle and back-office services. The comparatives have been re-presented to show the discontinued operation separately from continuing operations. The loss after tax of the discontinued operation for the six months ended 30 June 2026 was £40.1m (2025: profit of £7.9m), and the net cash outflow from operating activities was £20.0m (2025: £25.3m outflow). The perimeter of the discontinued operation comprises the legal entities being sold, adjusted for any trade, assets, or employees that have been moved in or out of these entities prior to completion of the sale, the historical impairment of goodwill associated with the business being sold, and the amortisation of related acquired intangible assets. The discontinued operation also includes right-of-use asset impairment losses of £22.0m related to the planned lease surrender of legacy contact centres, whose leases remain with the Group following the completion of the disposal of the private sector contact centre business. Also included in expenses of the discontinued operation for the six months ended 30 June 2026 are impairment losses of £53.7m for the write-down of the disposal group to the lower of its carrying amount and its fair value less costs to sell. Further detail on the discontinued operation can be found in note 8.3 to the condensed consolidated financial statements. Movements in net debt Net debt at 30 June 2026 was £499.7m (31 December 2025: £461.6m). The increase in net debt over the six months ended 30 June 2026 reflects the free cash outflow noted above and the drawing on the RCF, partly offset by lease rental payments in the period. Net debt does not include finance lease receivables, which at 30 June 2026 were £93.9m (31 December 2025: £96.6m) reflecting the successful sub-letting of property the Group is not using. Net debt 30 June 2026 £m 31 December 2025 £m Opening net debt (461.6) (415.2) Cash movement in net debt (20.7) (19.0) Non-cash movements (17.4) (27.4) Closing net debt (499.7) (461.6) Remove closing IFRS 16 impact 299.3 318.2 Net financial debt (pre-IFRS 16) (200.4) (143.4) Cash and cash equivalents net of overdrafts 116.0 125.3 Financial debt net of swaps (316.4) (268.7) Net financial debt/adjusted EBITDA 1 (both pre-IFRS 16) 1.6x 1.0x Net debt (post-IFRS 16)/adjusted EBITDA 1 3.3x 2.5x Net financial debt (pre-IFRS 16) increased by £57.0m to £200.4m at 30 June 2026, resulting in a net financial debt to adjusted EBITDA (both pre-IFRS 16) ratio of 1.6x. Over the medium term, the Group is targeting a net financial debt to adjusted EBITDA 1 (both pre-IFRS 16) ratio of ≤1.0x. The Group was compliant with all debt covenants at 30 June 2026. Capital and financial risk management Financial instruments used to fund operations and to manage liquidity comprise USD and GBP private placement loan notes, revolving credit facility (RCF), leases and overdrafts. Available liquidity 1 30 June 2026 £m 31 December 2025 £m Revolving credit facility 325.0 250.0 Less: drawing on the revolving credit facility (47.0) - Undrawn committed facilities 278.0 250.0 Cash and cash equivalents net of overdrafts 116.0 125.3 Less: restricted cash (43.3) (45.9) Available liquidity 1 350.7 329.4 In February 2026, the Group entered into a £75m additional committed financing facility, with a subset of the existing lenders and terms consistent with the Group's existing £250m revolving credit facility (RCF). In June 2026, the Group extended and increased its RCF to £325m, replacing the previous RCF (£250m) and additional committed facility (£75m), and extending the expiry date of the facility to June 2029 (including the option for two additional one-year extensions). In July 2026, the Group issued $55m of US private placement loan notes, valued at £41m, net of swaps, with an average coupon rate of 7.54%. The notes rank pari passu with the Group's existing senior indebtedness. This provides the Group further optionality on its transformation journey. Refer to the Appendix for details on the covenants. The RCF was £47.0m drawn at 30 June 2026 (31 December 2025: undrawn). At 30 June 2026, the Group had a total of £17.8m (31 December 2025: £24.6m) invoices sold under non-recourse trade receivables financing facilities, including £11.1m (31 December 2025: £17.2m) attributable to the UK facility and £6.7m (31 December 2025: £7.4m) attributable to the German contract-specific facility. Both facilities provide an economically favourable rate versus the RCF. At 30 June 2026, the Group had £116.0m (31 December 2025: £125.3m) of cash and cash equivalents net of overdrafts, and £267.4m (31 December 2025: £266.4m) of private placement loan notes and fixed-rate bearer notes. Going concern The Board closely monitors the Group's funding position throughout the year, including compliance with covenants and available facilities to ensure it has sufficient headroom to fund operations. In addition, to support the going concern assumption the Board conducts a robust assessment of the projections, considering also the committed facilities available to the Group. Under the base case scenario, the disposal of the private sector contact centre business and the material overhead reduction it enables as further complexity is removed from the Group, facilitates growth in profit and cash flow over the medium term. The phasing of the overhead reduction in 2026 and 2027, the consideration from the disposal being contingent and receivable from January 2027 onwards, coupled with the operational issues with the Civil Service Pension Scheme contract and the impact this has had on the wider Pension Solutions business, post actions being taken across the wider Group to offset some of the impact (primarily the acceleration of the aforementioned overhead reduction into 2026), has reduced the forecast revenue, profit and cash flow in 2026. When combined with available committed facilities, the Group remains able to manage scheduled debt repayments (with no need for future refinancing of these repayments throughout the going concern period). The base case financial forecasts demonstrate liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2027. The Board has considered risks to the projections under a severe but plausible downside scenario, and the mitigations, under the direct control of the Group, that could be implemented to ensure there is sufficient headroom when assessing the Group's future compliance with its debt covenants in a severe but plausible downside scenario. Taking these considerations into account, the Group's financial forecasts, in a severe but plausible downside scenario, before taking account of any covenant waiver or amendment, demonstrate sufficient liquidity headroom throughout the going concern period to December 2027, but potentially insufficient headroom when assessing compliance with debt covenant measures in the short term. This was not the case when assessing the severe but plausible downside scenario for the purposes of the 31 December 2025 consolidated financial statements due to combination of events in 2026 detailed further above. The Group's financial forecasts, in a severe but plausible downside scenario demonstrate sufficient headroom when assessing compliance with debt covenant measures beyond the short term. The Group maintains regular dialogue with its lenders, and the Board is confident that any temporary waiver or amendment could be obtained, if required. The Board recognises that any debt covenant waiver or amendment would require lender approval and is therefore outside the direct control of the Group. Accordingly, this gives rise to a material uncertainty, as defined by accounting standards, relating to events and circumstances which may cast significant doubt about the Group's ability to continue as a going concern and to realise assets and discharge its liabilities in the normal course of business. The Board's assessment in set out in more detail in note 1 to the condensed consolidated financial statements. Pensions The latest formal valuation for the Group's main defined benefit pension scheme (the HPS), was carried out as at 31 March 2023. This identified a statutory funding surplus of £51.4m. No deficit contributions are currently payable to the HPS. However, the funding position will be assessed as part of the ongoing formal actuarial valuation as at 31 March 2026, at which point any future contribution requirements will be reviewed. The valuation of scheme liabilities (and assumptions used) for funding purposes (the actuarial valuation) are specific to the circumstances of each scheme. It differs from the valuation and assumptions used for accounting purposes, which are set out in IAS 19 and shown in these condensed consolidated financial statements. The main difference is in assumption principles being used based in the different regulatory requirements of the valuations. Management estimates that at 30 June 2026 the net asset of the HPS on a funding basis (i.e. the funding assumption principles adopted for the full actuarial valuation at 31 March 2023 updated for market conditions at 30 June 2026) was approximately £66m (31 December 2025: net asset £80.0m) on a technical provisions basis. The net defined benefit pension position of all reported defined benefit schemes for accounting purposes increased from a surplus of £29.1m at 31 December 2025 to a surplus of £42.7m 2 at 30 June 2026. The main reasons for this movement are the increase in the discount rate (driven by an increase in corporate bond yields) partially offset by a slight increase in expected future inflation which have led to a decrease in the value of the liabilities. This has been offset by a corresponding decrease in the value of the assets and allowance for actual inflation over the period. Balance sheet Consolidated net assets were £5.6m at 30 June 2026 (31 December 2025: net assets £41.8m). The decrease predominantly reflects the total loss for the period of £45.3m, partially offset by the actuarial gain on defined benefit pension schemes of £9.7m recognised directly in other comprehensive income in the six months ended 30 June 2026. Refer to alternative performance measures in the appendix This excludes the funding position of the schemes that will transfer as part of the sale of the private sector contact centre business, which had a deficit of £3.3m and are included within the disposal group liabilities held-for-sale as at 30 June 2026. Forward looking statements This half year results statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisors accept and assume no liability to any person in respect of this trading update except as would arise under English law. Statements contained in this trading update are based on the knowledge and information available to Capita's Directors at the date it was prepared and therefore facts stated and views expressed may change after that date. This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to Capita's business, financial condition and results of operations. Those statements, and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect", "aim", "plan", "target", "project", "will", "may", "should", "forecast" or the negatives of these terms and words of similar meaning, reflect Capita's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this trading update. Save as required by applicable law or regulation, Capita undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this trading update. Furthermore, past performance cannot be relied on as a guide to future performance. No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Capita share for the current or future financial years would necessarily match or exceed the historical published earnings per Capita share. Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it, or any part of it, nor the fact of its distribution form the basis of, or be relied on in connection with any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities. Principal risks and uncertainties The principal risks and uncertainties faced by the Group and its approach to internal control and risk management are set out on pages 79 to 85 of the 2025 Annual Report and Accounts, which is available on the Group's website at https://www.capita.com/dam/documents/investors/2025-annual-report/Capita-annual-report-2025.pdf . The Executive Risk and Ethics Committee (EREC) have considered the principal risks and uncertainties of the Group and have determined that those reported in the 2025 Annual Report and Accounts remain materially the same for the remaining half of the financial year, with two exceptions noted. The Cyber security and Data governance and data privacy risk, as reported in the 2025 Annual Report and Accounts, have been combined into a single risk for Cyber security and data privacy, refer to risk 6 in the table below. In addition, a new Failure of suppliers risk has been added, refer to risk 9 in the table below, in accordance with our commitment made in 2025 Annual Report and Accounts. The principal risk profile is shown below. Risk title Risk description Profitable growth Attract new customers and retain existing customers on appropriate commercial terms Contract compliance Deliver services to customers in accordance with contractual and legal obligations AI adoption and governance People attraction and retention Financial stability and resilience Cyber security and data privacy Environment, social and governance (ESG) Strategic and operational exposure from inadequate AI adoption and governance Attract, develop, engage and retain the right talent Our ability to maintain financial resilience and achieve financial targets Protect our systems, networks and programs from unauthorised use and access Comply with regulatory and contractual requirements to drive a purpose driven organisation with the right focus on governance Safety and health Protect the safety and health of all Capita's employees and manage our duty of care to them, the people we work with and those affected by our acts and omissions Failure of suppliers Continuity of service from suppliers who provide critical services Statement of Directors' responsibilities The Board of directors confirms, to the best of its knowledge, that these condensed consolidated financial statements have been prepared in accordance with IAS 34 as adopted for use in the UK and that the Half Year Management Report includes a fair review of the information required by Rules 4.2.7 and 4.2.8 of the Disclosure Guidance and Transparency Rules of the United Kingdom Financial Conduct Authority. The names and functions of the Board of directors of Capita plc are listed on the Group website at https://www.capita.com/about-us/our-leadership . By order of the Board Adolfo Hernandez Pablo Andres Chief Executive Officer Chief Financial Officer 3 August 2026 3 August 2026 Notes 30 June 2026 £m 30 June 2025 £m 1 Continuing operations Revenue 3 948.3 960.5 Cost of sales (774.0) (774.7) Gross profit 174.3 185.8 Administrative expenses (148.4) (167.4) Operating profit 3 25.9 18.4 Losses on financial assets 8.1 - (0.4) Finance income 5 4.3 8.0 Finance costs 5 (26.1) (24.3) Profit before tax 4.1 1.7 Income tax charge 6 (9.3) (17.0) Loss from continuing operations (5.2) (15.3) Discontinued operation (Loss)/profit from discontinued operation 8.3 (40.1) 7.9 Total loss for the period (45.3) (7.4) Attributable to: Owners of the Company (44.5) (7.5) Non-controlling interests (0.8) 0.1 (45.3) (7.4) (Loss)/earnings per share Continuing: - basic 7 (3.60)p (13.59)p (3.60)p (37.21)p (37.21)p (13.59)p (6.62)p (6.62)p diluted Total operations: - basic diluted Adjusted operating profit 4 32.2 47.1 Adjusted profit before tax 4 12.5 29.1 Adjusted basic earnings/(loss) per share 7 13.38p (6.09)p Adjusted diluted earnings/(loss) per share 7 13.38p (6.09)p 2025 comparatives have been re-presented from those previously published to reflect the discontinued operation in 2026 (refer to note 8.3). The accompanying notes are an integral part of these condensed consolidated financial statements. Notes 30 June 2026 £m 30 June 2025 £m Total loss for the period (45.3) (7.4) Other comprehensive income/(expense) Items that will not be reclassified subsequently to the income statement Actuarial gain/(loss) on defined benefit pension schemes - continuing operations 9.7 (4.0) Actuarial gain on defined benefit pension schemes - discontinued operation - 0.6 Tax effect on defined benefit pension schemes - continuing operations (2.5) 1.0 Tax effect on defined benefit pension schemes - discontinued operation - (0.2) Gain on fair value of investments - continuing operations 0.1 - Items that will or may be reclassified subsequently to the income statement Exchange differences on translation of foreign operations - continuing operations (1.2) (2.0) Exchange differences on translation of foreign operations - discontinued operation 0.7 (0.4) Gain/(loss) on cash flow hedges - continuing operations 3.1 (20.0) Cash flow hedges recycled to the income statement - continuing operations (0.4) 9.8 Tax effect on cash flow hedges - continuing operations (0.7) 2.6 Other comprehensive income/(expense) for the period net of tax 8.8 (12.6) Total comprehensive expense for the period net of tax (36.5) (20.0) Attributable to: Owners of the Company (35.7) (20.1) Non-controlling interests (0.8) 0.1 (36.5) (20.0) The accompanying notes are an integral part of these condensed consolidated financial statements. Notes 30 June 2026 £m 31 December 2025 £m Non-current assets Property, plant and equipment 48.1 57.5 Intangible assets 82.5 97.6 Goodwill 300.1 300.1 Right-of-use assets 111.3 158.5 Contract fulfilment assets 2 223.2 233.3 Financial assets 11 95.9 98.1 Deferred tax assets 156.2 128.7 Employee benefits 13 43.6 33.7 Trade and other receivables 9.9 11.4 1,070.8 1,118.9 Current assets Financial assets 11 8.0 6.8 Income tax receivable 1.0 3.5 Disposal group assets held-for-sale 8.4 79.2 - Trade and other receivables 331.1 350.2 Cash and cash equivalents 11 266.4 264.1 685.7 624.6 Total assets 1,756.5 1,743.5 Current liabilities Overdrafts 11 152.2 138.8 Trade and other payables 345.7 405.7 Disposal group liabilities held-for-sale 8.4 97.0 - Income tax payable 4.6 3.5 Deferred income 382.8 373.6 Lease liabilities 11 31.0 39.5 Financial liabilities 11 210.8 119.5 Provisions 10 69.0 70.9 1,293.1 1,151.5 Non-current liabilities Trade and other payables 12.0 13.9 Deferred income 3.4 6.5 Lease liabilities 11 253.1 278.7 Financial liabilities 11 113.9 159.8 Deferred tax liabilities 6.6 6.6 Provisions 10 67.9 80.1 Employee benefits 13 0.9 4.6 457.8 550.2 Total liabilities 1,750.9 1,701.7 Net assets 5.6 41.8 Capital and reserves Share capital 12 37.5 37.2 Share premium 12 20.7 20.7 Employee benefit trust shares 12 (2.8) (1.6) Capital redemption reserve 1.8 1.8 Other reserves (13.6) (15.1) Retained (deficit)/earnings (31.6) 4.4 Equity attributable to owners of the Company 12.0 47.4 Non-controlling interests (6.4) (5.6) Total equity 5.6 41.8 The accompanying notes are an integral part of these condensed consolidated financial statements. Total Employee attributable benefit Capital Retained to the Non- Share Share trust redemption (deficit)/ Other owners of controlling Total capital premium shares reserve earnings reserves the parent interests equity £m £m £m £m £m £m £m £m £m At 31 December 2024 35.2 1,145.5 (0.3) 1.8 (972.8) (9.5) 199.9 (4.2) 195.7 Total (loss)/profit for the period - - - - (7.5) - (7.5) 0.1 (7.4) Other comprehensive expense - - - - (2.6) (10.0) (12.6) - (12.6) Total comprehensive (expense)/income for the - - - - (10.1) (10.0) (20.1) 0.1 (20.0) Share-based payment - - - - 2.9 - 2.9 - 2.9 Share premium cancellation 1 - (1,145.5) - - 1,145.5 - - - - Exercise of share options under employee - - 0.8 - (0.8) - - - - Shares issued 0.1 - (0.1) - - - - - - Parent company shares purchased - - (0.4) - - - (0.4) - (0.4) At 30 June 2025 35.3 - - 1.8 164.7 (19.5) 182.3 (4.1) 178.2 period long-term incentive plans At 31 December 2025 37.2 20.7 (1.6) 1.8 4.4 (15.1) 47.4 (5.6) 41.8 Total loss for the period Other comprehensive income - - - - - - - - (44.5) 7.3 - 1.5 (44.5) 8.8 (0.8) - (45.3) 8.8 Total comprehensive (expense)/income for the period - - - - (37.2) 1.5 (35.7) (0.8) (36.5) Share-based payment - - - - 2.1 - 2.1 - 2.1 Exercise of share options under employee long-term incentive plans (note 12) - - 0.9 - (0.9) - - - - Shares issued (note 12) 0.3 - (0.3) - - - - - - Parent Company shares purchased (note 12) - - (1.8) - - - (1.8) - (1.8) At 30 June 2026 37.5 20.7 (2.8) 1.8 (31.6) (13.6) 12.0 (6.4) 5.6 Following shareholder approval at the Company's 2025 Annual General Meeting on 28 April 2025 and subsequent sanctioning by the High Court of England and Wales on 10 June 2025, the Company cancelled its share premium account. The effect of this capital reduction was to increase the distributable reserves of the Company through a transfer to retained earnings. The accompanying notes are an integral part of these condensed consolidated financial statements. Notes 30 June 2026 £m 30 June 2025 £m Cash generated from continuing operations Cash used by discontinued operation 9 8.3 30.0 (17.5) 53.4 (22.6) Total cash generated from operations 12.5 30.8 Income tax paid (3.6) (3.2) Income tax received 1.0 0.6 Interest received 3.4 4.0 Interest paid (24.1) (24.1) Net cash (outflow)/inflow from operating activities (10.8) 8.1 Cash flows from investing activities Purchase of property, plant and equipment (4.1) (3.3) Purchase of intangible assets (16.2) (12.9) Proceeds from sale of property, plant and equipment, and intangible assets - 1.0 Disposals of investments at FVTPL - 0.4 Capital element of lease rental receipts 2.3 2.1 Net cash flow on disposal of business exits 8.2 (0.5) (0.6) Net cash outflow from investing activities (18.5) (13.3) Cash flows from financing activities Purchase of Parent Company shares by the Employee Benefit Trust (0.5) (0.4) Capital element of lease rental payments (22.9) (25.7) Proceeds on issue of private placement loan notes - 93.4 Gain from cross currency swaps - 0.8 Repayment of private placement loan notes - (89.0) Proceeds from cross-currency interest rate swaps - 13.1 Proceeds from other finance - 0.2 Proceeds from credit facilities 47.0 - Debt financing arrangement costs (2.4) (0.5) Net cash inflow/(outflow) from financing activities 21.2 (8.1) Decrease in cash and cash equivalents (8.1) (13.3) Cash and cash equivalents at the beginning of the period 125.3 191.4 Effect of exchange rates on cash and cash equivalents (1.2) 1.5 Cash and cash equivalents at 30 June 116.0 179.6 Cash and cash equivalents comprise: Cash 266.4 334.1 Overdrafts (152.2) (154.5) Cash, net of overdrafts, included in disposal group assets and liabilities held-for-sale 8.4 1.8 - Total 116.0 179.6 Cash generated from operations excluding business exits 9 51.4 68.6 Free cash flow excluding business exits 9 3.5 25.2 The accompanying notes are an integral part of these condensed consolidated financial statements. Corporate information Capita plc (the 'Company' or the 'Parent Company') is a public limited liability company incorporated in England and Wales whose shares are publicly traded. These condensed consolidated financial statements as at and for the six months ended 30 June 2026 comprise the Company and its subsidiaries (together referred to as 'the Group'). These condensed consolidated financial statements were authorised for issue by the Board of directors (the 'Board') on 3 August 2026. These condensed consolidated financial statements are presented in British pounds sterling and all values are rounded to the nearest tenth of a million (£m) except where otherwise indicated. Basis of preparation, judgements and estimates, and going concern Basis of preparation These unaudited condensed consolidated financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, and with IAS 34 Interim Financial Reporting under UK-adopted International Accounting Standards (UK-IFRS). These condensed consolidated financial statements have been prepared by applying the same accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 31 December 2025. The Group has considered the impact of new, and amendments to, reporting standards which are effective from 1 January 2026 and concluded that they were either not applicable, or not material, to these condensed consolidated financial statements. The Group is in the early stages of its assessment for all other standards, amendments and interpretations that have been issued by the International Accounting Standards Board (IASB) but are not yet effective, with the exception of IFRS 18 Presentation and Disclosure of Financial Statements . The Group will adopt the standard for the reporting period ending 31 December 2027. The impact of the standard on the Group, although well progressed, remains on-going and it is not yet practical to quantify the effect of IFRS 18 on the consolidated financial statements. These condensed consolidated financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2025 have been delivered to the Registrar of Companies. The auditor has reported on those accounts and its opinion was (i) unqualified, (ii) did not include any matters to which the auditor drew attention by way of emphasis of matter without modifying its opinion, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. These condensed consolidated financial statements have been reviewed by the Group's auditor pursuant to the Auditing Practices Board guidance on the Review of Interim Financial Information. Adjusted results IAS 1 Presentation of Financial Statements permits an entity to present additional information for specific items to enable users to better assess the entity's financial performance. The Board has adopted a policy to separately disclose those items that it considers are outside the underlying operating results for the particular period under review and against which the Group's performance is assessed internally. In the Board's judgement, these need to be disclosed separately by virtue of their nature, size and/or incidence for users of the condensed consolidated financial statements to obtain a proper understanding of the financial information and the underlying performance of the Group. In general, the Board believes that alternative performance measures (APMs) are useful for investors because they provide further clarity and transparency about the Group's financial performance and are closely monitored by management to evaluate the Group's operating performance to facilitate financial, strategic and operating decisions. Accordingly, these items are also excluded from the discussion of divisional performance. Refer to the appendix for further details of the Group's APMs. Those items which relate to the ordinary course of the Group's operating activities remain within adjusted results. The Board has limited the items excluded from the adjusted results to: business exits; impairment of goodwill; certain net finance expense/ income; the costs associated with the cyber incident in March 2023; and the costs associated with the Group wide restructuring programmes, such as the simplification programme announced in the first half of 2026 following the announcement of the sale of the private sector contact centre business and the cost reduction programme that concluded at the end of 2025. The Board considers free cash flow, and cash generated from operations excluding business exits, after deducting the capital element of lease payments and receipts, to be APMs because these metrics provide a more representative measure of the sustainable cash flow of the Group. While the Board considers APMs to be helpful to the reader, it notes that APMs have certain limitations, including the exclusion of significant recurring and non-recurring items, and may not be directly comparable with similarly titled measures presented by other companies. A reconciliation between reported and adjusted operating profit and profit before tax is provided in note 4, and a reconciliation between reported and free cash flow excluding business exits and cash generated from operations is provided in note 9. Judgements and estimates These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles which require the Board to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the presented periods. Although these judgements and assumptions are based on the Board's best knowledge of the amounts, events or actions, actual results may differ. The significant judgements and assumptions made by the Board in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2025, except for the impairment of goodwill in respect of the Contact Centre group of cash generating units (CGUs) as the remaining goodwill in respect of this CGU was impaired at 31 December 2025. Judgements The key areas where significant accounting judgements have been made and which have the most significant effect on the amounts recognised in these condensed consolidated financial statements, are summarised below and set out in more detail in the related note: Contract accounting (note 2) - revenue recognition; Capitalisation of contract fulfilment assets (note 2); and Adoption of the going concern basis of preparation (note 1.2(d)). Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, which have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are summarised below and set out in more detail in the related note. The Group based its assumptions and estimates on parameters available when these condensed consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are incorporated into the assumptions when they occur: Contract accounting (note 2) - impairment of contract fulfilment assets, carrying value of onerous contract provisions and variable consideration to be recognised; Deferred tax asset recognition (note 6); Carrying value of closed book Life & Pensions business exit provision (note 10); Carrying value of claims and litigations provisions (note 10); and Measurement of defined benefit pension obligations (note 13). Going concern In determining the appropriate basis of preparation of these condensed consolidated financial statements for the six months ended 30 June 2026, the Board is required to consider whether the Group can continue in operational existence for the foreseeable future. The Board has concluded that it is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities and mitigations, as set out below. Accounting standards require that 'the foreseeable future' for going concern assessment covers a period of at least twelve months from the date of approval of the condensed consolidated financial statements. The Board has considered the period from the date of approval of these condensed consolidated financial statements to 31 December 2027 ('the going concern period'), which aligns with a year end and a covenant test date for the Group. The base case financial forecasts used in the going concern assessment are derived from financial projections for 2026-2027 as approved by the Board in March 2026 and subsequently updated for new funding arrangements (outlined below), the disposal of the private sector contact centre business and trading conditions. The going concern assessment considers the Group's sources and uses of liquidity and covenant compliance throughout the period under review. In June 2026, the Group entered into a £325m revolving credit facility (RCF) with a three year tenor and two one year extension options with a subset of the existing lenders, replacing the existing £250m RCF and £75m additional committed financing facility. In July 2026, the Group issued $55m of US private placement loan notes, maturing in July 2029, valued at £41.2m net of swaps, with a coupon rate of 7.54%. The notes rank pari passu with the Group'...

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