Half Year Results 2025

About this update from Capita Plc

[{"type":"text","content":"\n\n \n \n\n\n\n\n Capita plc Half Year Results 2025   Solid progress against strategic objectives; full year expectations unchanged Adolfo Hernandez, Chief Executive Officer, said : “We are pleased to see good signs of momentum in the ongoing transformation of Capita, with a particularly strong performance in our Public Sector business, underscoring our important role in bringing innovation and fresh thinking to the challenge of delivering efficient public services. \"The total value of contracts won by the Group increased by 17% compared with the first half of last year, with increased interest from customers in our AI-driven solutions that bodes well for future growth and we have more than £4.4bn of higher technology opportunities in the Group pipeline. \"Meanwhile, our focus on cost discipline continues to help Capita adapt to some of the challenges we have seen in the Contact Centre business and we are on track to deliver £250m of cost savings by December 2025 and to deliver positive free cash flow from the end of 2025. \"The operational performance and momentum we have seen in the first half of the year gives confidence in our delivery of the second half of the year and our full year outlook remains unchanged.\" Growing momentum against strategic priorities to build a Better Capita •           Actions taken to deliver £190m annualised cost savings at 30 June 2025, which increased to £205m as at 31 July 2025 •           On track to deliver previously announced £250m target by December 2025 •           Cash cost to deliver savings in H1 2025 of £21.5m, reflecting slower than expected phasing of in year savings in some areas •           Productivity benefits seen throughout organisation from our improved technology foundations, products and innovation •           Recently launched Capita AI Catalyst Lab, driving efficiencies and higher quality customer solutions •           First use of 'Agents', with Agentforce AI, powered by Salesforce, to drive volume recruitment •           10 point improvement in Group employee net promoter score H1 2025 Financial results •           Adjusted revenue 1 decreased by 4% to £1,154.8m (H1 2024: £1,198.6m): ◦           Growth in Capita Public Service ( 62% of Group revenue) of 4% from contract wins and expansions of existing scopes ◦           R evenue reduction in Contact Centre of 20% ( 24% of Group revenue) from the ongoing impact of previously announced contract losses and subdued volumes in the Telecommunications vertical ◦           Revenue broadly in line with the prior period in Pension Solutions at (0.3)% (7% of Group revenue) ◦           1.1% reduction in Regulated Services ( 7% of Group revenue) due to previously agreed contract hand backs, offset by the one-off benefit from a contract termination in the Mortgage Software business •           Adjusted operating profit 1 decreased 22% to £42.6m reflecting revenue reductions in Contact Centre and non-repeat of one-offs and contract hand backs in Regulated Services, reinvestment in the Group and the timing of the Group's pay award and increase in National Insurance, which more than offset the benefit from the cost reduction programme and revenue growth in Public Service •           Reported loss before tax of £9.5m (H1 2024 profit: £60.0m); including £23.4m of costs associated with the Group's cost reduction programme and impact of business exits in the prior year •           Free cash outflow excluding business exits, of £26.1m (H1 2024 outflow: £52.5m), reflecting improved operating cash flow, reduced capital expenditure and lease payments and benefit from phasing of cost to achieve the cost reduction programme •           Extended maturity date of Revolving Credit Facility worth £250m by 12 months to 31 December 2027; including a £50m accordion option, remaining terms substantially unchanged Growth and contract wins •           Total contract value (TCV) won increase d 17% to £1,044.4m (H1 2024: £891.9m), reflecting strong performance in Capita Public Service up 53%, offsetting lower TCV performance in the Contact Centre business, with expansions with the Royal Navy and renewals and extensions with Gas Safety Register, Education Authority Northern Ireland and Primary Care Support England •           Improved book to bill ratio of 0.9x (2024: 0.7x) •           Unweighted pipeline of £11.7bn with £4.4bn of opportunities with a higher technology underpin Group outlook for full year 2025 and medium term targets unchanged •           Adjusted revenue expected to be broadly flat. Capita Public Service guidance upgraded to mid single digit revenue growth, Contact Centre now expected to deliver a mid teen revenue reduction •           Modest improvement in Group margin •           Free cash flow, before impact of business exits, between £45 - £65m, with improved cash conversion of 55% to 65%; expect to be free cash flow positive from the end of 2025 •           £55m outflow to deliver the cost reduction programme \t \t\t \t\t\t \t\t\t Six months ended 30   June 2025 \t\t\t \t\t \t\t \t\t\t \t\t\t Financial highlights \t\t\t \t\t\t \t\t\t Reported 2025 \t\t\t \t\t\t \t\t\t Reported 2024 \t\t\t \t\t\t \t\t\t Reported \t\t\t POP change \t\t\t \t\t\t \t\t\t Adjusted 1 2025 \t\t\t \t\t\t \t\t\t Adjusted 1 2024 \t\t\t \t\t\t \t\t\t Adjusted 1 \t\t\t POP change \t\t\t \t\t \t\t \t\t\t \t\t\t Revenue \t\t\t \t\t\t \t\t\t £1,159.8m \t\t\t \t\t\t \t\t\t £1,237.3m \t\t\t \t\t\t \t\t\t (6%) \t\t\t \t\t\t \t\t\t £1,154.8m \t\t\t \t\t\t \t\t\t £1,198.6m \t\t\t \t\t\t \t\t\t (4%) \t\t\t \t\t \t\t \t\t\t \t\t\t Operating profit \t\t\t \t\t\t \t\t\t £9.2m \t\t\t \t\t\t \t\t\t £43.9m \t\t\t \t\t\t \t\t\t (79%) \t\t\t \t\t\t \t\t\t £42.6m \t\t\t \t\t\t \t\t\t £54.5m \t\t\t \t\t\t \t\t\t (22%) \t\t\t \t\t \t\t \t\t\t \t\t\t Operating margin 2 \t\t\t \t\t\t \t\t\t 0.8% \t\t\t \t\t\t \t\t\t 3.5% \t\t\t \t\t\t \t\t\t (270)bps \t\t\t \t\t\t \t\t\t 3.7% \t\t\t \t\t\t \t\t\t 4.5% \t\t\t \t\t\t \t\t\t (80)bps \t\t\t \t\t \t\t \t\t\t \t\t\t EBITDA 2 \t\t\t \t\t\t \t\t\t £47.0m \t\t\t \t\t\t \t\t\t £101.7m \t\t\t \t\t\t \t\t\t (54%) \t\t\t \t\t\t \t\t\t £80.2m \t\t\t \t\t\t \t\t\t £102.4m \t\t\t \t\t\t \t\t\t (22%) \t\t\t \t\t \t\t \t\t\t \t\t\t (Loss)/profit before tax \t\t\t \t\t\t \t\t\t £(9.5)m \t\t\t \t\t\t \t\t\t £60.0m \t\t\t \t\t\t \t\t\t n/a \t\t\t \t\t\t \t\t\t £22.6m \t\t\t \t\t\t \t\t\t £31.9m \t\t\t \t\t\t \t\t\t (29%) \t\t\t \t\t \t\t \t\t\t \t\t\t Basic (loss)/earnings per share 3 \t\t\t \t\t\t \t\t\t (6.62)p \t\t\t \t\t\t \t\t\t 47.09p \t\t\t \t\t\t \t\t\t n/a \t\t\t \t\t\t \t\t\t 21.63p \t\t\t \t\t\t \t\t\t 33.06p \t\t\t \t\t\t \t\t\t (35%) \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow 2 \t\t\t \t\t\t \t\t\t £51.2m \t\t\t \t\t\t \t\t\t £73.5m \t\t\t \t\t\t \t\t\t (30%) \t\t\t \t\t\t \t\t\t £55.9m \t\t\t \t\t\t \t\t\t £50.8m \t\t\t \t\t\t \t\t\t 10% \t\t\t \t\t \t\t \t\t\t \t\t\t Free cash flow 2 \t\t\t \t\t\t \t\t\t £(30.7)m \t\t\t \t\t\t \t\t\t £(44.6)m \t\t\t \t\t\t \t\t\t 31% \t\t\t \t\t\t \t\t\t £(26.1)m \t\t\t \t\t\t \t\t\t £(52.5)m \t\t\t \t\t\t \t\t\t 50% \t\t\t \t\t \t\t \t\t\t \t\t\t Net debt 2 \t\t\t \t\t\t \t\t\t £(412.2)m \t\t\t \t\t\t \t\t\t £(521.9)m \t\t\t \t\t\t \t\t\t 21% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Net financial debt (pre-IFRS 16) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £(87.0)m \t\t\t \t\t\t \t\t\t £(166.4)m \t\t\t \t\t\t \t\t\t 48% \t\t\t \t\t \t 1. Capita reports results on an adjusted basis to aid understanding of business performance (refer to alternative performance measures in the appendix). Adjusted operating cash flow and free cash flow exclude the impact of business exits (refer to note 9). 2. Operating margin, EBITDA, operating cash flow, free cash flow and net debt as presented under reported results are sub-totals or are derived from the reported results but are not defined in IFRS and are therefore also alternative performance measures (refer to alternative performance measures in the appendix). They are presented to enable comparability to the Group's adjusted equivalent of each metric presented in the financial highlights table. 3. 2024 comparatives have been re-presented from those previously published to reflect the 1 for 15 share consolidation undertaken in April 2025 (refer to notes 7 and 13).     Investor presentation A presentation for institutional investors and analysts hosted by Adolfo Hernandez, CEO and Pablo Andres, CFO, will be held at 09:00am UK time, Tuesday 5   August 2025. This will be held in the Novotel, 3 Kingdom Street, Paddington London W2 6BD. A live webcast will also be available (www.capita.com/investors) and will subsequently be available on demand. The pres entation 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-hy25/     For further information: \t \t\t \t\t\t \t\t\t Helen Parris, Director of Investor Relations \t\t\t \t\t\t \t\t\t T +44 (0) 7720 169 269 \t\t\t \t\t \t\t \t\t\t \t\t\t Stephanie Little, Head of Investor Relations \t\t\t \t\t\t \t\t\t T +44 (0) 7541 622 838 \t\t\t \t\t \t\t \t\t\t \t\t\t Madeleine Little, Group Head of External Communications \t\t\t \t\t\t \t\t\t T +44 (0) 7860 343 604 \t\t\t \t\t \t\t \t\t\t \t\t\t Capita press office \t\t\t \t\t\t \t\t\t T +44 (0) 2076 542 399 \t\t\t \t\t \t   LEI no. CMIGEWPLHL4M7ZV0IZ88.   Chief Executive Officer's review H1 2025 Summary We commenced this year in a stronger position to deliver more effectively and efficiently to our clients, reflecting the strong foundations laid in 2024. Our strategy of partnering with technology hyperscalers to improve the agility of the business around client needs is working and our momentum continues to build. Our vision is clear - to be the trusted outsourcing partner, innovating to deliver quality services by combining the best people, AI, and technology to drive superior results and create outstanding experiences for our customers. At the start of the year, we outlined six strategic priorities to deliver a “Better Capita” which are; cost transformation, sales effectiveness, product and innovation, technology foundations, operating model and building a high-performance organisation. I’m extremely pleased to see the progress we are making against each of these priorities as we future proof the business. Better technology is at the core of our transformation, and we are moving at pace building our capabilities in this area. This year we launched our Artificial Intelligence and Product Office (AI&PO) operating model and the internal Capita AI Catalyst lab, a dedicated team focused on identifying, testing, and scaling AI solutions based on ideas generated from employees throughout the business. Following a detailed review last year of our contract portfolio and services line mapping, we clarified our business focus areas. Our Star Positions - where we have clear strengths and expertise with good returns, Transformational Potential - those areas that needed further work - and Manage for Value businesses many of which we have exited or are exiting. This is critical for where we will focus our resources and technology. Our focus is on delivering scalable and repeatable solutions to respond to evolving opportunities in the front, middle and back office services that each of our operating divisions offer. Viewing the market in this way means we now have a more client led targeted approach and we are focusing our investments around these market opportunities. Our Business Process Outsourcing industry is clearly undergoing a major technological shift, with AI already embedded in around 20% of services across Europe. That figure is expected to rise sharply, with AI projected to account for £30 billion of a c.£55 billion market by 2027 2 . We’ve seen exponential growth in client interest in our AI solutions (including agentic AI). We have been using Capita as 'client zero' whilst working alongside our hyperscaler partners and we have launched five products this year. We are using these products in a number of existing contracts to drive better delivery , and continue to identify opportunities for wider use cases across our contract portfolio. We have a number of products we expect to be launched in the second half of 2025. We’re driving better efficiencies through the Group’s successful cost reduction programme, which enables us to invest in our technology offerings. At the end of June, the Group has now taken actions that will deliver £190m of annualised savings, growing to £205m at the end of July. While the phasing of some in year savings has been slower than anticipated, particularly in the Contact Centre business, we are on track to deliver our previously announced £250m target by De cember 2025. We are re-investing in the business and have begun our planned £50m investment into our technology solutions this year with spend in H1 on our data maturity and governance, investments in our product offerings and further enhancements to our cyber maturity. We remain focused on our employees during this transformation as we work to build a high-performance culture and better company . This year we launched our refreshed company values and culture playbook and maintained our employee engagement score while seeing a 10-point increase in employee net promoter score within the Group’s mid year people survey, a score of -23 points. The Group is on track to improve its financial performance and we are confident in the delivery of our medium-term targets of delivering low to mid-single digit adjusted revenue 1 growth per annum; an adjusted operating (EBIT) margin 1 of 6 – 8%; and positive free cash flo w, excluding business exits 1 , from the end of 2025. Our priorities for the second half of the year are delivering our planned product launches, improving the financial performance of the Contact Centre business which has faced a number of headwinds recently and continuing the roll out of our exciting AI and technology led products, including AgentSuite, to more clients. Better technology AI is driving a significant technological revolution and as we expected, is driving disruption in the markets in which we operate. With our combination of \"star positions\" in higher growth and higher margin services, sector process knowledge and the capabilities of our hyperscaler partners, including AWS, Microsoft, Salesforce and ServiceNow, we are well placed to be at the forefront of these changes. Our ‘human in the loop’ principle, which is part of our strength as a Business Process Service (BPS) provider, augments and amplifies the human role within our customer solutions. This is improving customer outcomes thereby allowing us to drive change both internally and across our contract portfolio. We have now launched our refreshed operating model and are investing in our AI&PO and Technology Operations teams and their newly formed Capita AI catalyst lab. These bring new skills to Capita given their backgrounds at our hyperscaler partners. This enables us to simplify our service delivery and create better outcomes. This operating model is driving the creation of repeatable, standardised products and solutions which integrate AI quickly, to respond to complex and fast changing market demands and evolving client needs. As we embed these solutions and they amplify the work our people do, we are becoming more efficient and increasing the quality of our delivery, which is helping to future proof the business. The Capita AI catalyst lab is leading our progress. This dedicated team is focused on identifying, testing and scaling AI solutions based on ideas originated from employees across the organisation. Since inception in Q1 2025, over 300 ideas have been identified and we have launched five products internally; including Contact Centre of the Future, Document Validation & Fraud Detection, Automated Recruitment, Learning & Development and AI-powered Intelligent Mailrooms & Document Processing. There are a number of further product releases planned for the second half of 2025, including Collections & Debt Recovery, Workforce Management, and Estate Management & Building Safety Compliance. Using our experience across the front, middle and back-office customer operations we are well placed to design and build solutions incorporating hyperscaler technology, and we are using Capita as client zero to test solutions before rolling these out to clients in some cases. For example, this year, to deliver more efficient colleague assistance, we transitioned to ServiceNow for our internal IT and colleague support and we are looking at further rollout opportunities for our finance and HR support.   This year, we will become one of the first companies in Europe to use Agentforce, Salesforce’s agentic AI technology, to drive volume recruitment. This tool reduces the length of the employee recruitment process significantly, matching candidates to roles and delivering a personalised candidate experience. This forms the first use of AI agents, artificial intelligence systems capable of autonomous decision and adaptive behaviour, across Capita. So far, we have identified over 100 agentification opportunities across the Group and this is an area which we will be expanding on and prioritising in the second half of the year. In the Contact Centre business, our successful roll-out of the AgentSuite tool has continued, with a reduction in average call handling time of c.15% and improvement in customer satisfaction scores on all operational clients. This tool is now driving efficiencies for six clients, with roll-out planned for a further five clients. Our Microsoft Copilot usage across the Group continues to grow and drive efficiencies, as of July 2025 we now have 260,000 interactions each month. This year we have created and launched 70 Copilot agents around specific employee needs to offer real time support and enhance productivity, including contract knowledge specific agents which are driving contract efficiencies. For example, the MyPensions Buddy agent is currently being tested by two material clients in Pensions Solutions and our BBC TV Licensing ASK Assistance is continuing to increase agents’ confidence in responding to queries. The Group’s most prominent agent is AskMeAnything (AMA), a search tool that helps employees navigate its vast SharePoint estate. Using this tool, employees can ask questions to find specific policies and procedures within the SharePoint knowledge base, instead of time consuming manual searches. We are identifying AI opportunities on our existing contracts which currently are serviced through traditional BPO methods and infrastructure, to drive efficiency and improve our contract delivery. For example, this year we co-designed an AI-powered discount verification system for TfL’s new tolling scheme on the Silvertown and Blackwall Tunnels, a tool for which we believe there are a number of other use cases across the sector. In our Local Public Service vertical, we are using the Appian AI tool to identify and recover aged debt, helping councils improve revenue collection. As a Group we are responsible for a range of data assets and to ensure we can deliver industry leading data-driven and AI enabled solutions for our clients, we are committed to improving the Group’s data management maturity against the Data Management Association (DAMA) framework. Our commitment to training, data management tools and automated data governance technology, including our improved Information Asset Register will allow us to identify, record and manage data assets more effectively. As we drive significant change through our technology transformation we are committed to responsible and ethical AI. All AI adopted by Capita must adhere to our AI principles (inclusive, trustworthy, transparent, accountable, secure, governed and adaptive), which govern the secure, fair and ethical use of AI. Our gen AI oversight committee is ensuring human oversight of critical decisions. Better delivery Whilst we are moving at pace, we are ensuring we are maintaining our operational delivery to customers. In the first six months of 2025, the Group's average KPI performance was strong at 94% and consistent with the prior year. This operational delivery, combined with the increased use of technology within contracts, will enable us to increase our margins in line with our medium-term target. Highlights from our operational delivery in the first half of the year include: –          In Capita Public Service, on the division’s Primary Care Support England contract, we signed a further three-year extension this year, driven by our operational delivery and continued innovation via our PCSE Online self-service platform –          Also within our Public Service division, in May we delivered the 10 th service transition which saw further expansion on our successful Royal Navy training contract. The latest service commencement saw 170 additional personnel join to fulfil training services for Marine Engineering at HMS Sultan –          In the Contact Centre business, we were able to design, build and set up a customer experience centre in two days with over 400 employees to assist a client experiencing a sudden steep increase in customer contact –          In our Contact Centre business, we are continuing to offshore roles in line with client demands to drive efficiency. Our delivery hub in South Africa has continued to successfully transition clients while seeing lower attrition rates than peers, which is allowing us to maintain customer satisfaction scores through the transition process –          In Pension Solutions so far this year, we have engaged with 1.8 million pension scheme members through our communication and engagement team For any contracts where mobilisation delays were encountered, remediation plans were swiftly put in place to improve performance and reduce avoidable overspend. In the Conta ct Centre business, we have seen continued volume reductions in the Telecommunications vertical. We expect the impact of this volume reduction to annualise in the second half of this year, and we have the opportunity to regain volumes in the future. In June 2024, at our Capital Markets Event we outlined a number of businesses within our Manage for Value category. We continue to make progress in the businesses in this category and in December 2024, we announced the disposal of the Group’s mortgage servicing business which we now expect to complete in Q3 2025. Over the next 12 months, we will be transitioning our Networks Managed Services to AWS Cloud WAN and Software Defined WAN as we continue our journey towards a fully cloud-native enterprise. We remain in active discussions with the one remaining client to exit in our closed book Life & Pensions business. As previously announced, we have agreed transition agreements for all other clients in this business of Regulated Services and those with transition agreements will be transferred in the coming years, with volume reductions expected as these clients are transitioned. The business continues to have an expected annual cash cost to the Group of £20m. Better efficiencies We continue to maintain our cost consciousness across the Group. As of 30   June 2025, we have now delivered £190m of annualised savings, which will help to deliver our medium-term Group adjusted operating margin 1 target of 6 – 8%. In some areas of the business, the phasing of the in year savings this year has been slower than previously anticipated, particularly within the Contact Centre business. We remain on track to deliver our previously announced target of £250m annualised savings by December 20 25, with £205m actioned as at 31 July 2025. We continu e to expect £50m this year to be reinvested into the Group as we drive growth through technology and maintain our cost competitiveness. These savings have been achieved through the operational efficiencies and synergies gained as we improve our processes and technology and embed AI and generative AI further through the business. Savings have also been achieved through our ongoing property rationalisation, procurement and our successful offshoring programme, particularly within Group and divisional support functions and in some areas of the Contact Centre business. As expected, we are delivering a proportion of savings through natural employee attrition, particularly in the Contact Centre business where, due to the nature of the business, we have seen historically higher levels of attrition than other areas of the Group. In June 2025, the 12 month rolling attrition in this business was 26%, compared to 15% for the rest of the Group. In the first half of the year, we incurred £21.5m of cash cost to deliver the annualised savings. We are on track to deliver the remaining savings by December 2025 and continue to expe ct £55m cash costs to achieve in 2025. An element of the in-year savings this year is offsetting incremental National Insurance contributions, which we expect to have a gross £20m annualised cost to the Group. We are reinvesting a proportion of the Group’s savings to future proof the Group. Spend in the first half includes our data maturity and governance and investments in our project offerings and further enhancements to our cyber maturity. Despite the reduction in adjusted operating margin 1 seen in the first half of the year, we are confident in delivering a full year margin improvement as cost saving actions taken in the first half of the year benefit the second half margin performance. Better company As part of our transformation, we’ve launched a culture transformation programme to build a high-performance organisation and culture. Our colleagues are at the heart of everything we do and are a critical part of the consistency of our client and customer delivery. In the first half of the year, we have launched a refreshed set of values which were co-created with colleagues across all our geographies. The refreshed values of Customer First, Always; Fearless Innovation; Achieve Together; and Everyone is Valued will help us drive performance, enhance service delivery, and foster inclusivity. These values underpin our delivery model and are embedded through our new Colleague Playbook. As part of our transformation journey, we are upskilling our people and our AI, Data and Technology academy continues to be an important resource on this journey. So far over 10,000 digital learning courses have been completed by employees across our geographies and we’ve equipped over 1,500 managers through our Manager and Leadership Academies. Our AI Academy Multiverse partnership continues to go from strength to strength. We now have 240 colleagues, across four intakes, completing apprenticeships focused on leveraging AI responsibly to drive improved business outcomes. This year we launched the Capita 500 programme, which is a change initiative for the Group’s top 500 leaders to accelerate the Group’s transformation and develop our leaders to drive change at pace in all areas of the organisation. More broadly, we are empowering our people to be change champions with refreshed communication channels, ‘better bootcamps’ which focus on engagement and building teams capability and Capita reactor days allowing colleagues to be a part of and help shape the transformative change across the organisation. We are seeing the positive impact of our culture initiatives across our global workforce. In the global pulse people survey in H1, the Group’s employee net promoter score improved 10 points to -23, with employee engagement maintained at 63% (2024 year-end: 64%). This is a positive indicator given some of the difficult decisions which have been made through this period of transformation. Attrition continues to decrease with rolling 12-month attrition at the end of June at 20%, the lowest level it has been for many years. While our attrition rate has reduced, we are using natural attrition to aid delivery of our cost savings target, particularly in those areas of the business where attrition has historically been higher, such as Contact Centre where rolling 12-month attrition is currently 26%. Total contract value and growth In the first six months of 2025, we saw Total Contract Value (TCV) won increase 17% to £1,044.4m , with a strong performance in Capita Public Service which saw a 53% increase in TCV won, compared to the same period in 2024. In Year Revenue associated with the deals won across the Group was 3% higher, in the first six months of 2025, at £387m. Significant wins in the first half of the year include a renewal with expanded scope with Southern Water and extensions with Gas Safety Register, Education Authority Northern Ireland and Primary Care Support England. We also secured expansions of scope with the Royal Navy, which was operationally effective in May, and a client within Pension Solutions. The Group’s book to bill in H1 2025 was 0.9x up from 0.7x in H1 2024, following a strong performance in Capita Public Service which had a book to bill rate of 1.1x, which offset the lower performance in Contact Centre and limited wins in the Regulated Services division where we are actively exploring exits. As we continue to build a leaner organisation we are becoming more cost competitive, which we expect to have a positive impact on our win rate in the long term. In the first half of 2025, the win rate across all opportunities was 77%, up from 44% in the same period in 2024. This was driven by an increased win rate for new and expanded scopes of work which improved from 48% in H1 2024 to 77% in H1 2025. We are building a pipeline around our innovative solutions with a higher technology underpin as we increase efficiencies and further delivery quality. As of 30   June 2025, of the total unweighted pipeline of £11.7bn, £4.4bn is from contracts which have a higher technology underpin. In July, the Group secured a further scope expansion with Transport for London over an initial four year period. Further opportunities for the second half and into 2026 include contracts in Capita Public Service with the Ministry of Defence, the Department for Education, Department for Work & Pensions, the Department for Health and Social Care and the Home Office. In the Contact Centre business there are material opportunities with a number of clients across all geographies the division operates in. The order book at 30   June 2025 was £4.0bn ( 31   December 2024 : £4.2bn ) with £0.8bn revenue recognised in the first half offset by £0.6bn in contract wins, scope changes and indexation. Financial results - revenue and profit Adjusted revenue 1 reduced 3.7% period on period to £1,154.8m (H1 2024: £1,198.6m), reflecting the impact of previously announced contracts losses, subdued volumes in the Telecommunciations vertical and offshoring in the Contact Centre business. This was partially offset by growth in the Capita Public Service division from contract wins in the Central Government vertical. Reported revenue reduced 6% to £1,159.8m in line with the above reduction and the impact of business exits. Adjusted operating profit 1 decreased 22% to £42.6m reflecting revenue reductions in Contact Centre, reinvestment in the Group and the timing of the Group's pay award and increase in National Insurance, which more than offset the benefit from the cost reduction programme and revenue growth in Public Service. The adjusted operating margin 1 for the Group was   3.7%, reducing from 4.5% in the same period in 2024. Reported operating profit was £9.2m (H1 2024 profit: £43.9m) including £23.4m of costs associated with the cost reduction programme and £6.9m operating loss in respect of business exits, which includes the trading performance up to the point of being disposed and project costs. Financial results - free cash flow and net debt Operating cash flow excluding business exits, increased by 10% to £55.9m, driven by the timing of a cash receipt on a major contract in the Telecommunications vertical in the Contact Centre. Free cash flow excluding business exits 1 was an outflow of £26.1m (outflow in 2024 of £52.5m), reflecting the flow through of the increase in operating cash flow excluding business exits, reduction in pension deficit contributions and the decrease in the capital element of lease rental payments, partly offset by an increase in the cash cost to deliver the cost reduction programme. Pre-IFRS 16 net financial debt 1 was £87.0m (31   December 2024: £66.5m) reflecting the Group's free cash outflow. Post-IFRS 16 net debt was £412.2m (31   December 2024: £415.2m). The Group’s IFRS 16 lease liability continues to reduce and as at 30   June 2025 was £325.2m reflecting lease payments made in the first half of the year, and excludes a sub lease receivable of £93.6m related to the subletting of properties the Group is not utilising. In July, the Group extended the maturity date of its Revolving Credit Facility to 31 December 2027, a 12 month extension against the existing maturity date and includes a £50m accordion option. Full-year outlook unchanged We expect Group adjusted revenue 1 to be flat. We now expect Capita Public Service to deliver mid single digit revenue growth, improving from our initial low to mid single digit guidance, which offsets Contact Centre where we now expect to see a mid-teen revenue reduction. In Pension Solutions we expect a mid single digit revenue increase and a decline in Regulated Services as we hand-back contracts. We expect a modest improvement in year on year adjusted operating margin for the Group as a whole, with an improvement in the second half of the year from the Group's cost saving programme and the expectation of continued revenue growth in Capita Public Service. We continue to expect to deliver positive free cash flow before business exits from the end of 2025 with a total outflow of £45 - £65m, including a £55m cost to achieve associated with the cost reduction programme. ___________________________________________ 1. Refer to alternative performance measures in the appendix 2. 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 3 (SITS) and business process services 3 (BPS) to the UK Government. The division is structured around three market verticals: Local Public Service; Defence & National Preparedness (including Learning); and Central Government, delivering to their respective client groups. Markets and growth drivers Digital BPS is an area of fast growth with more traditional, less technology enabled services, currently shrinking, given the Government’s consistent announcements on using AI to make government processes more efficient. The division's deep sector process and domain expertise, alongside our hyperscaler partnership strategy, means Capita Public Service is well placed to deliver more effective and efficient public services. The division is adopting and implementing AI with a pragmatic and outcome led model to deliver a number of the Government’s priorities on a large scale, for example getting defence recruits to the frontline faster, digitising medical assessment for the Department for Work & Pensions and delivering efficient local government services. Operational performance and better technology So far this year, we have maintained our operational delivery with an average KPI performance of 94%, consistent with the performance in the prior year. Our strong operational performance and continued innovation via our Primary Care Support England (PCSE) Online self-service platform drove a further three year extension on our PCSE contract with NHS England, with the first 18 month period valued at £83m. On our Standards and Testing Agency contract, we supported 660,000 pupils across England performing their SATs exams, printing, distributing and marking over 3.7 million exam papers. Elsewhere, in the first six months of 2025, Capita Public Service has seen an increase in contracts delivered with a high level of technology underpin. On our contract with Transport for London this year, to support the opening of the Silvertown Tunnel scheme, we introduced an AI-powered discount verification automating 29 fraud checks. This tool has increased the accuracy of the discount verification while significantly improving the review time of applications. We have identified a number of further possible use cases for this tool across the sector. In Local Public Service, our Appian aged debt tool is continuing to assist councils collecting aged council tax debt. We are expanding its use to additional Local Council s with a further 27 Councils exploring the opportunity to utilise this tool in the second half of the year. We are exploring the use of this tool for other areas of aged Local Council debt such as housing debt. On the two contracts where we had encountered operational challenges, one of these contracts went live at the end of 2024 and we have seen continued operational improvements across the first half of the year. The remaining contract transformation has been paused while we agree an appropriate outcome with the client. Growth In H1 2025, Public Service won contracts with a TCV of £796.4m, up 53% from the same period in 2024. Material wins included renewals with Education Authority Northern Ireland, Gas Safety Register and with NHS England on our Primary Care Support England contract. The division also secured a further expansion of scope on its' successful Royal Navy training contract. The division's book to bill was strong at 1.1x, up from 0.8x in H1 2024. Pleasingly, as we continue to build our cost competitiveness, our bid margin on all successful bids this year has either met or exceeded the divisional margin target. The division's win rate across all opportunities was 81%, up from 39% in H1 2024, with a significant improvement in the win rate for new and expanded scopes of work which increased to 88% from 28%. Alongside our focus on targeted large opportunities, we have aimed to improve our win rate on mid-sized deals with a TCV between £5-£50m, where historically the division's win rate has been lower, as we build a more sustainable and predictable growth model with a more disciplined and repeatable approach to deal conversion. We are therefore very encouraged to have seen a significant improvement in wins of this size this year, delivering over £100m of TCV for the division in the first half of the year, with clients including a competitive re-bid with Bexley Council and a new logo win with a client delivering training at the Fire Service College.   As we move into the second half of the year and into 2026 there are a number of new scope opportunities and renewals within the pipeline, both in mid-sized and larger deals in each vertical in which the division operates, including with the Ministry of Defence and the Home Office. The division's total unweighted pipeline stands at £9.3bn, up from £8.2bn at the end of December 2024.   The divisional order book stands at £2,769m, a decrease of £155m from the year end, reflecting the revenue recognised in the period which more than offset wins in the period. \t \t\t \t\t\t \t\t\t Divisional financial summary \t\t\t \t\t\t \t\t\t 2025 \t\t\t \t\t\t \t\t\t 2024 \t\t\t \t\t\t \t\t\t % change \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted revenue 1 (£m) \t\t\t \t\t\t \t\t\t 711.8 \t\t\t \t\t\t \t\t\t 685.6 \t\t\t \t\t\t \t\t\t 3.8% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 (£m) \t\t\t \t\t\t \t\t\t 57.2 \t\t\t \t\t\t \t\t\t 47.4 \t\t\t \t\t\t \t\t\t 20.7% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating margin 1 (%) \t\t\t \t\t\t \t\t\t 8.0% \t\t\t \t\t\t \t\t\t 6.9% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted EBITDA 1 (£m) \t\t\t \t\t\t \t\t\t 72.3 \t\t\t \t\t\t \t\t\t 66.9 \t\t\t \t\t\t \t\t\t 8.1% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 (£m) \t\t\t \t\t\t \t\t\t 52.2 \t\t\t \t\t\t \t\t\t 49.2 \t\t\t \t\t\t \t\t\t 6.1% \t\t\t \t\t \t\t \t\t\t \t\t\t Order book (£m) (comparative at 31   December 2024) \t\t\t \t\t\t \t\t\t 2,768.6 \t\t\t \t\t\t \t\t\t 2,923.4 \t\t\t \t\t\t \t\t\t (5.3)% \t\t\t \t\t \t\t \t\t\t \t\t\t Total contract value secured (£m)* \t\t\t \t\t\t \t\t\t 796.4 \t\t\t \t\t\t \t\t\t 519.1 \t\t\t \t\t\t \t\t\t 53.4% \t\t\t \t\t \t * The comparative has been represented for the impact of business exits announced since 30 June 2024.   Adjusted revenue 1 grew 3.8% to £711.8m. The division saw the positive impact from wins including the Health Assessment Advisory Service and Disabled Students Allowance contracts and the benefit from the continued expansion of the Royal Navy training contract and a further extension with Primary Care Support England. This more than offset the impact of prior year losses in the Local Public Service vertical and the Electronic Monitoring Services contract. Adjusted operating profit 1 increased 20.7% to £57.2m, as the division benefitted from the impact of revenue growth and significant savings from the cost reduction programme, which was offset by timing from the Group's pay award, the impact from the increase in National Insurance Contributions and the continued reinvestment in technology offerings. Operating cash flow excluding business exits 1 increased by 6.1% to £52.2m, reflecting the flow through of improved operating profit on EBITDA. Outlook Reflecting the strong performance in the first half of the year, we now expect Capita Public Service to deliver mid-single digit revenue growth in 2025, compared to 2024. We expect a year on year improvement in adjusted operating margin 1 , driven by the division's revenue growth and cost reduction programme. Capita Experience Capita Experience comprises two focused business areas; the Contact Centre business and Capita Pension Solutions and a selection of businesses under Regulated Services, including closed book Life & Pensions, which are being managed for value. 1. Contact Centre Contact Centre is one of Europe’s leading 4 customer experience businesses with a top three 4 market share across EMEA, managing millions of interactions, with customers in the UK, Ireland, Germany and Switzerland and services delivered across these geographies and also in India, South Africa, Poland and Bulgaria. The division is structured around the market sectors it serves: Financial Services; Telecommunications, Media & Technology; Energy & Utilities; and Retail. Markets and growth drivers The customer experience market is evolving rapidly. AI and automation are elevating what is possible, driving demand for a personalised omnichannel service which can be delivered 24/7. Consumer expectations continue to rise, making customer experience a differentiator for businesses. Alongside digitally led services, customers in this market are demanding a flexible service model spanning onshore, nearshore and offshore operations anchored around the human in the loop philosophy combining cutting edge technology and the human element; to provide empathy and trust. The pursuit of better customer experience will continue to drive innovation, and AI will play an ever-growing role, but with the foundations of understanding and serving the customer. Operational performance and better technology In 2024 , we launched AgentSuite which continues to drive significant productivity benefits alongside improved customer satisfaction scores. We now have six clients utilising AgentSuite with five further clients in the implementation phase. Based on the success of AgentSuite, we are developing a sales module which will be integrated into AgentSuite and will allow a more efficient and effective sales process, where applicable. In H1 we expanded the deployment of Centrical into our Switzerland operations driving improvements in operational efficiency and customer service including 25% resource savings. The platform enables real-time coaching, gamified KPIs, and AI-powered feedback, enhancing advisor engagement and freeing up managerial capacity. Last year, the division launched nine customer service bundles that offer repeatable, modular and scalable solutions that can be easily tailored to client needs and allow more efficient and effective delivery. Following a specific marketing drive and campaign for our offerings with potential Tier 1 and Tier 2 clients in this vertical, this year we have seen an increase in pipeline origination for retail clients. This is providing a more diversified pipeline of opportunities which historically has been more focused on the Telecommunications, Media & Technology vertical. As we build our cost efficiency and reduce our cost to deliver, we are growing our near and offshore capabilities which offer lower cost solutions to clients, while maintaining high quality. Following the successful offshoring of a number of support areas, we have seen a number of clients offshore elements of their operations this year, particularly in the Utility sector. While we are making progress on delivery of the divisional cost savings, there has been some phasing impact this year with savings in the first half being achieved at a slower rate than anticipated which, alongside the division's revenue performance, has impacted the operating profit performance in the first half of 2025. This year, we have seen continued volume reductions in the Telecoms business, the impact of which we expect to annualise in H2 2025, and we have the opportunity to regain volumes in the future. Growth performance and key wins In the first six months of 2025, the Contact Centre business won deals with a T CV of £172.0m, down 48% from the same period in 2024, reflecting reduced bidding activity in the division in 2025 . The book to bill for Contact Centre was 0.6x, down from 0.9x in the first six months of 2024. Ther e were material wins with Southern Water, with a TCV of £92m, with whom we expanded our existing scope alongside a five-year renewal and two further clients within the utilities vertical. The division saw a slight decrease in win rate across all opportunities to 63%, down from 67% in H1 2024. There is significant scope to increase the win rate for new and expanded scopes of work where the division saw a win rate of 21% in the first six months of 2025 . The unweighted pipeline for the division stood at £1.8bn at 30   June 2025 , down from £2.3bn at 31   December 2024, reflecting bids in the period which have not yet been replenished within the pipeline . There has been an increase in our retail and retail banking unweighted pipeline following our successful retail bundle launch in 2024. There are material opportunities in the second half across all of the geographies in which the division operates, including in the Telecommunications, Media & Technology and Financial Services vertical. Given the reduction in pipeline, we recognise work is required to rebuild the pipeline in the second half of the year. The divisional order book stands at £625m, representing a small decrease of £20m from £645m at 31   December 2024. \t \t\t \t\t\t \t\t\t Divisional financial summary \t\t\t \t\t\t \t\t\t 2025 \t\t\t \t\t\t \t\t\t 2024 \t\t\t \t\t\t \t\t\t % change \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted revenue 1 (£m) \t\t\t \t\t\t \t\t\t 277.4 \t\t\t \t\t\t \t\t\t 346.2 \t\t\t \t\t\t \t\t\t (19.9)% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 (£m) \t\t\t \t\t\t \t\t\t (11.4) \t\t\t \t\t\t \t\t\t 1.1 \t\t\t \t\t\t \t\t\t n/a \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating margin 1 (%) \t\t\t \t\t\t \t\t\t (4.1)% \t\t\t \t\t\t \t\t\t 0.3% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted EBITDA 1 (£m) \t\t\t \t\t\t \t\t\t 4.8 \t\t\t \t\t\t \t\t\t 21.4 \t\t\t \t\t\t \t\t\t (77.6)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 (£m) \t\t\t \t\t\t \t\t\t 21.4 \t\t\t \t\t\t \t\t\t 13.3 \t\t\t \t\t\t \t\t\t 60.9% \t\t\t \t\t \t\t \t\t\t \t\t\t Order book (£m) (comparative at 31   December 2024) \t\t\t \t\t\t \t\t\t 624.6 \t\t\t \t\t\t \t\t\t 644.6 \t\t\t \t\t\t \t\t\t (3.1)% \t\t\t \t\t \t\t \t\t\t \t\t\t Total contract value secured (£m) \t\t\t \t\t\t \t\t\t 172.0 \t\t\t \t\t\t \t\t\t 328.5 \t\t\t \t\t\t \t\t\t (47.6)% \t\t\t \t\t \t Adjusted revenue 1 reduced by 19.9% to £277.4m, as we saw the impact the from annualisation of volume reductions in the Telecommunications vertical, previously announced contract losses, volume reductions and the impact of offshoring on some clients. The division's adjusted operating loss 1 was £11.4m reflecting the flow through of the revenue reduction noted above which was partially offset by the cost reduction programme where we saw some slower than expect phasing. The division also saw the negative impact from the timing of the Group's pay award, increased National Insurance Contributions partially offset by the benefit of indexation. Operating cash flow excluding business exits 1 increased by 60.9% to £21.4m reflecting the timing of cash receipts on two major contracts in the division. Outlook Due to the continued reduction in volumes in the Telecommunications vertical, impact of contract losses which have not been offset by wins and the impact of off-shoring on some contracts, we expect a mid-teen revenue reduction in the division in 2025. Reflecting the revenue headwinds faced in the division, we now expect a year on year reduction in adjusted operating profit 1 2. 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 6 million scheme members a year. Pension Solutions also provides consulting services including actuarial and data services to its clients via its 500 expert pension consultants, which accounts for around one-third of its revenue. Markets and growth drivers The pensions industry continues to move towards an end-to-end digital experience with users looking for a seamless experience with increased automation and self-service options to allow a 24/7 service offering. Our Capita Digital Pensions Solutions tool will provide a step forward for the digitisation of the division’s operations. This digital tool utilises the Pensions Solutions' existing infrastructure and Microsoft Dynamics. When this tool is fully operational this will benefit clients, providing them even higher levels of operational resilience, increased engagement and an ability to reach underrepresented scheme members. For members the tool will allow for an enhanced digital experience with increased knowledge and flexible money management. We expect the Digital Pensions Solutions tool will increase member satisfaction and loyalty, providing Pension Solutions with a higher level of differentiation in a competitive market and data insights to inform our future services and products. We expect this tool to go live in late 2025 with a number of key clients, including the Civil Service Pensions Scheme which is due to transition in December 2025, with further roll out and development in 2026. Operational performance and better technology So far this year, the division has engaged with over 1.8 million pension scheme members through the communication and engagement team. KPI performance continues to be strong at 95%, consistent with the same period in 2024.   The division's digital pensions tool is modernising how pensions are managed and this year we have seen a further 200% increase in member engagement through digital channels as we continue the transition for all clients to paperless communications. This will reduce costs to deliver and improve efficiency of communications. We are improving our cost efficiency with our global delivery model and this year we have increased our offshoring presence in a number of support roles. As we look to the second half of the year, this is an area we are looking to expand on. Elsewhere, technology is driving efficiencies and a better service as we improve internal AI capabilities. Within the division we have fourteen agents in development, including MyPensionsBuddy which is currently being tested with two clients. Growth performance and key wins In the six months to 30   June 2025, the division secured contracts with a TCV of £75.3m , up from £40.0m in the same period in 2024. The division saw an improved win rate across all opportunities at 94%, compared to 61% in the first half of 2024. Material wins in the first half of the year included a renewal with an expansion of scope worth £37m for the UK arm of a global company and renewals with the Scottish & Newcastle Pension Plan and the Severn Trent Pension Scheme. The division's book to bill was 0.9x up from 0.5x in H1 2024. The unweighted pipeline for the division at 30   June 2025 was £661m down from £689m at the end of 2024 reflecting the wins in the first half of the year which were not fully replenished in the pipeline. The order book at 30   June 2025 was £467.8m , an increase from £441.3m at 31   December 2024, as wins more than offset the revenue recognised in the first half. \t \t\t \t\t\t \t\t\t Divisional financial summary \t\t\t \t\t\t \t\t\t 2025 \t\t\t \t\t\t \t\t\t 2024 \t\t\t \t\t\t \t\t\t % change \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted revenue 1 (£m) \t\t\t \t\t\t \t\t\t 86.1 \t\t\t \t\t\t \t\t\t 86.4 \t\t\t \t\t\t \t\t\t (0.3)% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 (£m) \t\t\t \t\t\t \t\t\t 9.7 \t\t\t \t\t\t \t\t\t 11.4 \t\t\t \t\t\t \t\t\t (14.9)% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating margin 1 (%) \t\t\t \t\t\t \t\t\t 11.3% \t\t\t \t\t\t \t\t\t 13.2% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted EBITDA 1 (£m) \t\t\t \t\t\t \t\t\t 13.3 \t\t\t \t\t\t \t\t\t 15.1 \t\t\t \t\t\t \t\t\t (11.9)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 (£m) \t\t\t \t\t\t \t\t\t 9.3 \t\t\t \t\t\t \t\t\t 22.3 \t\t\t \t\t\t \t\t\t (58.3)% \t\t\t \t\t \t\t \t\t\t \t\t\t Order book (£m) (comparative at 31   December 2024) \t\t\t \t\t\t \t\t\t 467.8 \t\t\t \t\t\t \t\t\t 441.3 \t\t\t \t\t\t \t\t\t 6.0% \t\t\t \t\t \t\t \t\t\t \t\t\t Total contract value secured (£m) \t\t\t \t\t\t \t\t\t 75.3 \t\t\t \t\t\t \t\t\t 40.0 \t\t\t \t\t\t \t\t\t 88.3% \t\t\t \t\t \t Adjusted revenue 1 reduced 0.3% to £86.1m, broadly flat with the prior year . Adjusted operating profit 1 decreased 14.9% to £9.7m due to the impact from the reduction in interest rates which more than offset the impact from the cost reduction programme. Operating cash flow excluding business exits 1 was an inflow of £9.3m reducing from £22.3m in the first half of 2024, reflecting the mobilisation and upfront implementation costs on Civil Service Pension Scheme contract. Outlook We expect the division to deliver mid-single digit revenue growth in 2025, driven by growth with our existing clients with margin across the year stable compared to the prior year. 3. Regulated Services Regulated Services includes a number of ‘manage for value’ businesses where we are exploring exits. The largest of the non-core businesses, is the closed book Life & Pensions business, for which we are making good progress exiting, with just one client remaining and hand back transitions agreed for all other clients, over the coming years. We expect to see continued revenue reductions in future years, as these contracts are transitioned. We are actively engaged with the remaining client to exit this area. The division is forecast to have an annual cash cost to the Group of around £20m per annum in future years. In the first half of the year, we agreed the termination of a contract within the Mortgage Software business. This contract will be handed back in the coming months and as a result of the termination we received a one-off £6m termination payment. \t \t\t \t\t\t \t\t\t Divisional financial summary \t\t\t \t\t\t \t\t\t 2025 \t\t\t \t\t\t \t\t\t 2024 \t\t\t \t\t\t \t\t\t % change \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted revenue 1 (£m) \t\t\t \t\t\t \t\t\t 79.5 \t\t\t \t\t\t \t\t\t 80.4 \t\t\t \t\t\t \t\t\t (1.1)% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 (£m) \t\t\t \t\t\t \t\t\t 2.5 \t\t\t \t\t\t \t\t\t 12.6 \t\t\t \t\t\t \t\t\t (80.2)% \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating margin 1 (%) \t\t\t \t\t\t \t\t\t 3.1% \t\t\t \t\t\t \t\t\t 15.7% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted EBITDA 1 (£m) \t\t\t \t\t\t \t\t\t 4.5 \t\t\t \t\t\t \t\t\t 15.9 \t\t\t \t\t\t \t\t\t (71.7)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 (£m) \t\t\t \t\t\t \t\t\t (8.1) \t\t\t \t\t\t \t\t\t (9.5) \t\t\t \t\t\t \t\t\t 14.7% \t\t\t \t\t \t\t \t\t\t \t\t\t Order book (£m) (comparative at 31   December 2024) \t\t\t \t\t\t \t\t\t 170.9 \t\t\t \t\t\t \t\t\t 231.4 \t\t\t \t\t\t \t\t\t (26.1)% \t\t\t \t\t \t\t \t\t\t \t\t\t Total contract value secured (£m) \t\t\t \t\t\t \t\t\t 0.7 \t\t\t \t\t\t \t\t\t 4.3 \t\t\t \t\t\t \t\t\t (83.7)% \t\t\t \t\t \t Adjusted revenue 1 reduced 1.1% to £79.5m reflecting the one-off benefit from Mortgage Software contract termination, which resulted in a £13m deferred income release and recognition of a £6m termination payment which partially offset continued revenue decline from contract hand backs within closed book Life & Pensions. Adjusted operating profit 1 decreased 80.2% to £2.5m following the non-repeat of a £10m one-off benefit in the prior year. The division benefited from the one-off revenue benefits noted above, offset by a £12m contract fulfilment asset impairment associated with the Mortgage Service contract termination and impact of contract hand backs within closed book Life & Pensions. Operating cash flow excluding business exits 1 was an outflow of £8.1m an improvement from the prior year reflecting the termination fee received in the first half of the year offset by the impact of contract hand backs in closed book Life & Pensions. Outlook We continue to expect an adjusted revenue 1 reduction in Regulated Services in 2025 as we hand back contracts in line with previously agreed transition agreements. Reflecting the divisions revenue reduction, we expect a reduction in the divisions adjusted operating margin 1 . ___________________________________________ 1. Refer to alternative performance measures in the appendix 2. Gartner 3. TechMarketView 4. NelsonHall Chief Financial Officer's review \t \t\t \t\t\t \t\t\t Financial highlights \t\t\t \t\t\t \t\t\t Reported results \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Adjusted 1 results \t\t\t \t\t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t \t\t\t \t\t\t POP change \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t \t\t\t \t\t\t POP change \t\t\t \t\t \t\t \t\t\t \t\t\t Revenue \t\t\t \t\t\t \t\t\t £1,159.8m \t\t\t \t\t\t \t\t\t £1,237.3m \t\t\t \t\t\t \t\t\t (6)% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £1,154.8m \t\t\t \t\t\t \t\t\t £1,198.6m \t\t\t \t\t\t \t\t\t (4)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating profit \t\t\t \t\t\t \t\t\t £9.2m \t\t\t \t\t\t \t\t\t £43.9m \t\t\t \t\t\t \t\t\t (79)% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £42.6m \t\t\t \t\t\t \t\t\t £54.5m \t\t\t \t\t\t \t\t\t (22)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating margin 2 \t\t\t \t\t\t \t\t\t 0.8% \t\t\t \t\t\t \t\t\t 3.5% \t\t\t \t\t\t \t\t\t (270)bps \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 3.7% \t\t\t \t\t\t \t\t\t 4.5% \t\t\t \t\t\t \t\t\t (80)bps \t\t\t \t\t \t\t \t\t\t \t\t\t EBITDA 2 \t\t\t \t\t\t \t\t\t £47.0m \t\t\t \t\t\t \t\t\t £101.7m \t\t\t \t\t\t \t\t\t (54)% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £80.2m \t\t\t \t\t\t \t\t\t £102.4m \t\t\t \t\t\t \t\t\t (22)% \t\t\t \t\t \t\t \t\t\t \t\t\t (Loss)/profit before tax \t\t\t \t\t\t \t\t\t £(9.5)m \t\t\t \t\t\t \t\t\t £60.0m \t\t\t \t\t\t \t\t\t n/a \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £22.6m \t\t\t \t\t\t \t\t\t £31.9m \t\t\t \t\t\t \t\t\t (29)% \t\t\t \t\t \t\t \t\t\t \t\t\t Basic (loss)/earnings per share 3 \t\t\t \t\t\t \t\t\t (6.62)p \t\t\t \t\t\t \t\t\t 47.09p \t\t\t \t\t\t \t\t\t n/a \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 21.63p \t\t\t \t\t\t \t\t\t 33.06p \t\t\t \t\t\t \t\t\t (35)% \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow 2 \t\t\t \t\t\t \t\t\t £51.2m \t\t\t \t\t\t \t\t\t £73.5m \t\t\t \t\t\t \t\t\t (30)% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £55.9m \t\t\t \t\t\t \t\t\t £50.8m \t\t\t \t\t\t \t\t\t 10% \t\t\t \t\t \t\t \t\t\t \t\t\t Free cash flow 2 \t\t\t \t\t\t \t\t\t £(30.7)m \t\t\t \t\t\t \t\t\t £(44.6)m \t\t\t \t\t\t \t\t\t 31% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £(26.1)m \t\t\t \t\t\t \t\t\t £(52.5)m \t\t\t \t\t\t \t\t\t 50% \t\t\t \t\t \t\t \t\t\t \t\t\t Net debt 2 \t\t\t \t\t\t \t\t\t £(412.2)m \t\t\t \t\t\t \t\t\t £(521.9)m \t\t\t \t\t\t \t\t\t 21% \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Net financial debt (pre-IFRS 16) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t £(87.0)m \t\t\t \t\t\t \t\t\t £(166.4)m \t\t\t \t\t\t \t\t\t 48% \t\t\t \t\t \t\t \t\t\t \t\t\t 1. Capita reports results on an adjusted basis to aid understanding of business performance (refer to alternative performance measures in the appendix). Adjusted operating cash flow and free cash flow exclude the impact of business exits (refer to note 9). \t\t\t 2. Operating margin, EBITDA, operating cash flow, free cash flow and net debt as presented under reported results are sub-totals or are derived from the reported results but are not defined in IFRS and are therefore also alternative performance measures (refer to alternative performance measures in the appendix). They are presented to enable comparability to the Group's adjusted equivalent of each metric presented in the financial highlights table. \t\t\t 3. 2024 comparatives have been re-presented from those previously published to reflect the 1 for 15 share consolidation undertaken in April 2025 (refer to notes 7 and 13). \t\t\t \t\t \t Overview Adjusted revenue 1 reduction of 4% mainly reflected previously announced contract hand-backs and losses, and the impact of the expected subdued volumes in the Telecommunications vertical in the Contact Centre business. Public Service revenue growth benefitted from the Health Assessment Advisory Service contract win, the Disabled Students Allowance contract, the extension of the Primary Care Support England contract, and the continued expanded scope on the Royal Navy training contract, partially offset by the flow through of contracts lost in previous years, including in Local Public Service and Electronic Monitoring Service, and lower volumes in the Learning business. In Experience, the revenue reduction in the Contact Centre business is the result of previously announced contract losses and subdued volumes within the Telecommunications vertical, and other volume reductions including the impact of working with our customers to drive volumes to our nearshore and offshore delivery centres. Revenue in the Pension Solutions business is broadly in-line with the prior period. Revenue reduction in the Regulated Services business reflects previously announced contract exits and additional in-year losses, partially offset by a £19m one-off benefit from a contract exit in the Mortgage Software business. The reduction in adjusted operating profit 1 reflected the impact of the revenue trends noted above, investment in the business, timing of the pay award and the increase in National Insurance, offset by the benefit from the ongoing cost reduction programme. Adjusted earnings per share 1 reduced reflecting the decrease in adjusted profit before tax 1 , offset by a lower adjusted income tax credit of £2.1m (2024: credit £5.2m). The reported operating profit of £9.2m reflects the reduction in adjusted operating profit 1 detailed above, and an increase in costs to deliver the significant cost reduction programme (2025: £23.4m; 2024: £8.2m). The reported loss before tax of £9.5m (2024: profit £60.0m), reflects the reduction in reported operating profit detailed above, and the disposal of Fera in January 2024. The reported loss per share reflected the reduction in profit before tax partly offset by the income tax credit in the current period compared to an income tax charge in the six months ended 30   June 2024. The reported tax credit reflects the decrease in the recognised deferred tax asset in the prior period due to the impact of business disposals. Operating cash flow excluding business exits 1 increased by 10% to £55.9m, driven by timing of cash receipts on two major contracts within the Contact Centre business. Free cash flow excluding business exits 1 in the six months ended 30   June 2025 was an outflow of £26.1m (2024: outflow £52.5m), reflecting the flow through of the increase in operating cash flow excluding business exits 1 , reduction in pension deficit contributions, the inflow in relation to the 2023 cyber incident reflecting insurance received in the period, and the decrease in the capital element of lease rental payments, partly offset by an increase in the cash outflow from the costs to deliver the cost reduction programme. The improvement in free cash flow 1 reflects the above increase in free cash flow excluding business exits 1 , and the reduction in pension deficit contributions triggered by disposals, offset by the movement from a cash inflow from business exits to a cash outflow. In November 2023, we implemented a multi-year cost reduction programme to deliver savings of £60m by Q1 2024. The programme was extended in March 2024, to deliver further savings of £100m by mid-2025, and in December 2024, the cost reduction target increased to up to £250m by the end of 2025. At 30   June 2025, we have delivered £190m of annualised savings and are on track to deliver the cost reduction programme by December 2025. Liquidity as at 30   June 2025 was £383.7m, made up of £250.0m of undrawn committed revolving credit facility (RCF) and £133.7m of unrestricted cash and cash equivalents net of overdrafts. In July 2025, we extended the maturity of the RCF by 12 months to 31   December 2027. The available facility remains at £250m. The RCF was undrawn at 30   June 2025 (31   December 2024: undrawn). The reduction in net debt and net financial debt (pre-IFRS 16) 1 since 30 June 2024 reflects the benefit from the Capita One disposal proceeds received in the second half of 2024. 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 2024 comparatives have been re-presented to exclude business exits in the second half of 2024 and the first six months of 2025. As at 30   June 2025, the following businesses met this threshold and were classified as business exits and therefore excluded from adjusted results in both 2025 and 2024: Fera, Capita One, mortgage servicing business, Capita Scaling Partner, and a small business from Capita Public Service. Reconciliations between adjusted and reported operating profit, profit before tax and free cash flow excluding business exits are provided on the following pages and in the notes to the financial statements. Adjusted revenue \t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Capita Experience \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted revenue 1 bridge by division \t\t\t \t\t\t \t\t\t Public \t\t\t Service \t\t\t £m \t\t\t \t\t\t \t\t\t Contact \t\t\t Centre \t\t\t £m \t\t\t \t\t\t \t\t\t Pension \t\t\t Solutions \t\t\t £m \t\t\t \t\t\t \t\t\t Regulated \t\t\t Services \t\t\t £m \t\t\t \t\t\t \t\t\t Total \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2024 \t\t\t \t\t\t \t\t\t   685.6   \t\t\t \t\t\t \t\t\t   346.2   \t\t\t \t\t\t \t\t\t   86.4   \t\t\t \t\t\t \t\t\t   80.4   \t\t\t \t\t\t \t\t\t   1,198.6   \t\t\t \t\t \t\t \t\t\t \t\t\t Net increase/(reduction) \t\t\t \t\t\t \t\t\t   26.2   \t\t\t \t\t\t \t\t\t   (68.8) \t\t\t \t\t\t \t\t\t   (0.3) \t\t\t \t\t\t \t\t\t   (0.9) \t\t\t \t\t\t \t\t\t   (43.8) \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2025 \t\t\t \t\t\t \t\t\t   711.8   \t\t\t \t\t\t \t\t\t   277.4   \t\t\t \t\t\t \t\t\t   86.1   \t\t\t \t\t\t \t\t\t   79.5   \t\t\t \t\t\t \t\t\t   1,154.8   \t\t\t \t\t \t Adjusted revenue 1 reduced 4% and was impacted by the following: •           Public Service (3.8% growth): benefit of the Health Assessment Advisory Service contract win, the Disabled Students Allowance contract, the extension of the Primary Care Support England contract, and continued expanded scope on the Royal Navy training contract, partially offset by the flow through of contracts lost in previous years, including in Local Public Service and Electronic Monitoring Service, and lower volumes in the Learning business; •           Experience: ◦           Contact Centre (19.9% reduction) : previously announced contract losses, the expected annualised impact of the subdued volumes within the Telecommunications vertical, and other volume reductions including the impact of working with our customers to drive volumes to our nearshore and offshore delivery centres, which reduces revenue while becoming more efficient and competitive; ◦           Pension Solutions (0.3% reduction) : broadly in-line with the prior period; and ◦           Regulated Services (1.1% reduction) : previously announced contract exits and additional in-year losses, partially offset by a £19m one-off benefit from a contract exit in the Mortgage Software business. Order book The Group’s consolidated order book was £4,031.9m at 30   June 2025 (31   December 2024: £4,240.7m). Additions from contract wins, scope changes and indexations in 2025 (£658.1m), including renewals with the Education Authority Northern Ireland, Primary Care Support England, and expanded scope on our Royal Navy Training contract within Capita Public Service, were offset by the reduction from revenue recognised in the period (£840.5m), and contract terminations (£26.4m). Adjusted operating profit \t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Capita Experience \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 bridge by division \t\t\t \t\t\t \t\t\t Public \t\t\t Service \t\t\t £m \t\t\t \t\t\t \t\t\t Contact \t\t\t Centre \t\t\t £m \t\t\t \t\t\t \t\t\t Pension \t\t\t Solutions \t\t\t £m \t\t\t \t\t\t \t\t\t Regulated \t\t\t Services \t\t\t £m \t\t\t \t\t\t \t\t\t Capita \t\t\t plc \t\t\t £m \t\t\t \t\t\t \t\t\t Total \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2024 \t\t\t \t\t\t \t\t\t   47.4   \t\t\t \t\t\t \t\t\t   1.1   \t\t\t \t\t\t \t\t\t   11.4   \t\t\t \t\t\t \t\t\t   12.6   \t\t\t \t\t\t \t\t\t   (18.0) \t\t\t \t\t\t \t\t\t   54.5   \t\t\t \t\t \t\t \t\t\t \t\t\t Net growth/(reduction) \t\t\t \t\t\t \t\t\t   9.8   \t\t\t \t\t\t \t\t\t   (12.5) \t\t\t \t\t\t \t\t\t   (1.7) \t\t\t \t\t\t \t\t\t   (10.1) \t\t\t \t\t\t \t\t\t   2.6   \t\t\t \t\t\t \t\t\t   (11.9) \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2025 \t\t\t \t\t\t \t\t\t   57.2   \t\t\t \t\t\t \t\t\t   (11.4) \t\t\t \t\t\t \t\t\t   9.7   \t\t\t \t\t\t \t\t\t   2.5   \t\t\t \t\t\t \t\t\t   (15.4) \t\t\t \t\t\t \t\t\t   42.6   \t\t\t \t\t \t Adjusted operating profit 1 decreased in the six months ended 30   June 2025 driven by the following: •           Public Service: flow through of higher revenue partially offset by the timing of pay awards and £3m impact of the National Insurance increase, and significant savings from the cost reduction programme, partially offset by continued reinvestment in technology offerings; •           Experience: ◦           Contact Centre: flow through of revenue decline and lower volumes within the Telecommunications vertical, the impact of net losses and volume reductions, including initial costs of offshoring and the National Insurance increase, partially offset by savings from the cost reduction programme; ◦           Pension Solutions: lower interest rate partly offset by the benefit from cost savings; ◦           Regulated Services: flow through of contract exits, partially offset by £6m benefit from termination fee received from the contract exit in the Mortgage Software business; and •           Capita plc : benefits from the cost reduction programme.     Adjusted profit before tax Adjusted profit before tax 1 reduced to £22.6m (2024: £31.9m), reflecting the above decrease in adjusted operating profit, partially offset by a reduction in net finance costs included within adjusted profit (2025: £20.0m; 2024: £22.6m). Adjusted tax credit The adjusted income tax credit for the period was £2.1m and is lower than the comparative period (credit of £5.2m) primarily as a result of a smaller increase in the deferred tax asset. Operating cash flow excluding business exits 1   \t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Capita Experience \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 by division \t\t\t \t\t\t \t\t\t Public \t\t\t Service \t\t\t £m \t\t\t \t\t\t \t\t\t Contact \t\t\t Centre \t\t\t £m \t\t\t \t\t\t \t\t\t Pension \t\t\t Solutions \t\t\t £m \t\t\t \t\t\t \t\t\t Regulated \t\t\t Services \t\t\t £m \t\t\t \t\t\t \t\t\t Capita \t\t\t plc \t\t\t £m \t\t\t \t\t\t \t\t\t Total \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2024 \t\t\t \t\t\t \t\t\t   49.2   \t\t\t \t\t\t \t\t\t   13.3   \t\t\t \t\t\t \t\t\t   22.3   \t\t\t \t\t\t \t\t\t   (9.5)   \t\t\t \t\t\t \t\t\t   (24.5)   \t\t\t \t\t\t \t\t\t   50.8   \t\t\t \t\t \t\t \t\t\t \t\t\t Net growth/(reduction) \t\t\t \t\t\t \t\t\t   3.0   \t\t\t \t\t\t \t\t\t   8.1   \t\t\t \t\t\t \t\t\t   (13.0)   \t\t\t \t\t\t \t\t\t   1.4   \t\t\t \t\t\t \t\t\t   5.6   \t\t\t \t\t\t \t\t\t   5.1   \t\t\t \t\t \t\t \t\t\t \t\t\t Six months ended 30   June 2025 \t\t\t \t\t\t \t\t\t   52.2   \t\t\t \t\t\t \t\t\t   21.4   \t\t\t \t\t\t \t\t\t   9.3   \t\t\t \t\t\t \t\t\t   (8.1)   \t\t\t \t\t\t \t\t\t   (18.9)   \t\t\t \t\t\t \t\t\t   55.9   \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash conversion 1 six months ended 30   June 2024 \t\t\t \t\t\t \t\t\t   73.5   % \t\t\t \t\t\t \t\t\t   62.1   % \t\t\t \t\t\t \t\t\t   147.7   % \t\t\t \t\t\t \t\t\t   (59.7)   % \t\t\t \t\t\t \t\t\t   145.0   % \t\t\t \t\t\t \t\t\t   49.6   % \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash conversion 1 six months ended 30   June 2025 \t\t\t \t\t\t \t\t\t   72.2   % \t\t\t \t\t\t \t\t\t   445.8   % \t\t\t \t\t\t \t\t\t   69.9   % \t\t\t \t\t\t \t\t\t   (180.0)   % \t\t\t \t\t\t \t\t\t   128.6   % \t\t\t \t\t\t \t\t\t   69.7   % \t\t\t \t\t \t Operating cash flow excluding business exits 1 and operating cash flow conversion 1 increased in 2025 driven by the following: •           Public Service: flow through of the improved operating profit; •           Experience: ◦           Contact Centre: the timing of cash receipts on two major contracts; ◦           Pension Solutions: mobilisation and upfront implementation costs for digital investment on the contract with the Civil Service Pension Scheme; ◦           Regulated Services: termination fee received from the contract exit in our Mortgage Software business; and •           Capita plc : benefit from the cost reduction programme and the timing of supplier payments. Cash generated from operations and free cash flow \t \t\t \t\t\t \t\t\t Adjusted operating profit to free cash flow excluding business exits 1 \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating profit 1 \t\t\t \t\t\t \t\t\t 42.6 \t\t\t \t\t\t \t\t\t 54.5 \t\t\t \t\t \t\t \t\t\t \t\t\t Add: depreciation/amortisation and impairment of property, plant and equipment, right-of-use assets and intangible assets \t\t\t \t\t\t \t\t\t 37.6 \t\t\t \t\t\t \t\t\t 47.9 \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted EBITDA 1 \t\t\t \t\t\t \t\t\t 80.2 \t\t\t \t\t\t \t\t\t 102.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Working capital \t\t\t \t\t\t \t\t\t (11.8) \t\t\t \t\t\t \t\t\t (31.2) \t\t\t \t\t \t\t \t\t\t \t\t\t Non-cash and other adjustments \t\t\t \t\t\t \t\t\t (12.5) \t\t\t \t\t\t \t\t\t (20.4) \t\t\t \t\t \t\t \t\t\t \t\t\t Operating cash flow excluding business exits 1 \t\t\t \t\t\t \t\t\t 55.9 \t\t\t \t\t\t \t\t\t 50.8 \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted operating cash conversion 1 \t\t\t \t\t\t \t\t\t 70% \t\t\t \t\t\t \t\t\t 50% \t\t\t \t\t \t\t \t\t\t \t\t\t Pension deficit contributions \t\t\t \t\t\t \t\t\t — \t\t\t \t\t\t \t\t\t (6.3) \t\t\t \t\t \t\t \t\t\t \t\t\t Cyber incident \t\t\t \t\t\t \t\t\t 1.1 \t\t\t \t\t\t \t\t\t (6.4) \t\t\t \t\t \t\t \t\t\t \t\t\t Cost reduction programme \t\t\t \t\t\t \t\t\t (21.5) \t\t\t \t\t\t \t\t\t (19.7) \t\t\t \t\t \t\t \t\t\t \t\t\t Cash generated from operations excluding business exits 1 \t\t\t \t\t\t \t\t\t 35.5 \t\t\t \t\t\t \t\t\t 18.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Net capital expenditure \t\t\t \t\t\t \t\t\t (15.2) \t\t\t \t\t\t \t\t\t (21.2) \t\t\t \t\t \t\t \t\t\t \t\t\t Interest/tax paid \t\t\t \t\t\t \t\t\t (22.8) \t\t\t \t\t\t \t\t\t (22.6) \t\t\t \t\t \t\t \t\t\t \t\t\t Net capital lease payments \t\t\t \t\t\t \t\t\t (23.6) \t\t\t \t\t\t \t\t\t (27.1) \t\t\t \t\t \t\t \t\t\t \t\t\t Free cash flow excluding business exits 1 \t\t\t \t\t\t \t\t\t (26.1) \t\t\t \t\t\t \t\t\t (52.5) \t\t\t \t\t \t The working capital improvement is principally driven by a higher net inflow from deferred income and contract fulfilment assets, reflecting the timing of cash receipts on two major contracts, and the non-recurrence of several one-off deferred income releases in the comparative period, both within the Contact Centre business. Non-cash and other adjustments includes movement in provisions, and amendments and early termination of leases. Cash generated from operations excluding business exits 1 reflects the above and the direct cash inflow of the cyber incident in the first half of 2023 (£1.1m) and the cash costs of delivering the cost reduction programme (£21.5m). Free cash flow excluding business exits 1 for the six months ended 30   June 2025 was an outflow of £26.1m (2024: outflow £52.5m), reflecting the flow through of the increase in cash generated from operations, lower capital investment, and lower net capital lease payments as we continue to reduce the Group's leased property estate.   Reported results 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 and the impact of the cyber incident and cost reduction programme. \t \t\t \t\t\t \t\t\t Adjusted 1 to reported results bridge \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Operating profit/(loss) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t Profit/(loss) before tax \t\t\t \t\t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t £m \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Adjusted 1 \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 42.6 \t\t\t \t\t\t \t\t\t 54.5 \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 22.6 \t\t\t \t\t\t \t\t\t 31.9 \t\t\t \t\t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Amortisation and impairment of acquired intangibles \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (0.1) \t\t\t \t\t\t \t\t\t (0.1) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (0.1) \t\t\t \t\t\t \t\t\t (0.1) \t\t\t \t\t \t\t \t\t\t \t\t\t Net finance income/(expense) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t — \t\t\t \t\t\t \t\t\t — \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 1.7 \t\t\t \t\t\t \t\t\t (0.4) \t\t\t \t\t \t\t \t\t\t \t\t\t Business exits \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (6.9) \t\t\t \t\t\t \t\t\t (2.7) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (7.3) \t\t\t \t\t\t \t\t\t 36.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Cyber incident \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (3.0) \t\t\t \t\t\t \t\t\t 0.4 \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (3.0) \t\t\t \t\t\t \t\t\t 0.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Cost reduction programme \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (23.4) \t\t\t \t\t\t \t\t\t (8.2) \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (23.4) \t\t\t \t\t\t \t\t\t (8.2) \t\t\t \t\t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t   \t\t\t \t\t \t\t \t\t\t \t\t\t Reported \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 9.2 \t\t\t \t\t\t \t\t\t 43.9 \t\t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t (9.5) \t\t\t \t\t\t \t\t\t 60.0 \t\t\t \t\t \t 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 2024 comparatives have been re-presented to exclude businesses classified as business exits from 1   July 2024 to 30   June 2025. At 30   June 2025 business exits primarily comprised the Group's mortgage servicing business, which met the threshold as to be held-for-sale at 31   December 2024 and 30   June 2025, and corporate venture business, Capita Scaling Partner. Cyber incident A charge of £3.0m has been recognised in the six months ended 30   June 2025 in relation to the March 2023 cyber incident, which is net of insurance receipts (30   June 2024: gain of £0.4m). Cost reduction programme The Group initiated a multi-year cost reduction programme in November 2023 to deliver savings of £60m by Q1 2024. The programme was extended in March 2024 and in December 2024, owing to the progress made ahead of schedule and £140m of annualised savings already delivered. With increased confidence in the level of efficiencies that could be delivered, the cost reduction target was increased to £250m by the end of 2025. A charge of £23.4m has been recognised in the six months ended 30   June 2025 for the costs to deliver the cost reduction programme. This includes redundancy and other costs of £21.1m (30   June 2024: £11.0m) to deliver a significant reduction in headcount and a charge of £2.3m arising from the rationalisation of the Group's property estate (30   June 2024: net credit £2.8m reflecting the successful exit of a number of properties which had been provided for in the prior periods). The cumulative cost recognised since the commencement of the cost reduction programme is £105.7m (30   June 2024: £62.6m). The cash outflow in the first half of 2025 in respect of the cost reduction programme was £21.5m, and the cost reduction initiatives are expected to result in cash costs in the whole of 2025 of an estimated £55m. Further detail of the specific items charged in arriving at reported operating profit and profit before tax for 2025 is provided in note   4 to the condensed consolidated financial statements. Reported tax credit The reported income tax credit for the period of £2.1m (six months ended 30   June 2024: charge of £7.1m) is the same as the adjusted tax credit as the items excluded from adjusted profit before tax 1 in the period increase the unrecognised deferred tax asset and therefore have no tax impact. The prior period charge is higher reflecting a decrease in the recognised deferred tax asset due to the impact of business disposals. Free cash flow 1 to free cash flow excluding business exits 1 \t \t\t \t\t\t \t\t\t   \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 30   June 2024 \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Free cash flow 1 \t\t\t \t\t\t \t\t\t (30.7) \t\t\t \t\t\t \t\t\t (44.6) \t\t\t \t\t \t\t \t\t\t \t\t\t Business exits \t\t\t \t\t\t \t\t\t 4.6 \t\t\t \t\t\t \t\t\t (22.4) \t\t\t \t\t \t\t \t\t\t \t\t\t Pension deficit contributions triggered by disposals \t\t\t \t\t\t \t\t\t — \t\t\t \t\t\t \t\t\t 14.5 \t\t\t \t\t \t\t \t\t\t \t\t\t Free cash flow excluding business exits 1 \t\t\t \t\t\t \t\t\t (26.1) \t\t\t \t\t\t \t\t\t (52.5) \t\t\t \t\t \t Free cash flow 1 was lower than free cash flow excluding business exits 1 reflecting the free cash outflows from business exits.   Movements in net debt Net debt at 30   June 2025 was £412.2m (31   December 2024: £415.2m). The decrease in net debt over the six months ended 30   June 2025 reflects the free cash outflow noted above, offset by the continued reduction in the Group's leased property estate. Net debt does not include finance lease receivables, which at 30   June 2025 were £93.6m (31   December 2024: £95.7m) reflecting the successful sub-letting of property the Group is not using. \t \t\t \t\t\t \t\t\t Net debt \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 31   December 2024 \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Opening net debt \t\t\t \t\t\t \t\t\t (415.2) \t\t\t \t\t\t \t\t\t (545.5) \t\t\t \t\t \t\t \t\t\t \t\t\t Cash movement in net debt \t\t\t \t\t\t \t\t\t 5.6 \t\t\t \t\t\t \t\t\t 197.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Non-cash movements \t\t\t \t\t\t \t\t\t (2.6) \t\t\t \t\t\t \t\t\t (67.1) \t\t\t \t\t \t\t \t\t\t \t\t\t Closing net debt \t\t\t \t\t\t \t\t\t (412.2) \t\t\t \t\t\t \t\t\t (415.2) \t\t\t \t\t \t\t \t\t\t \t\t\t Remove closing IFRS 16 impact \t\t\t \t\t\t \t\t\t 325.2 \t\t\t \t\t\t \t\t\t 348.7 \t\t\t \t\t \t\t \t\t\t \t\t\t Net financial debt (pre-IFRS 16) \t\t\t \t\t\t \t\t\t (87.0) \t\t\t \t\t\t \t\t\t (66.5) \t\t\t \t\t \t\t \t\t\t \t\t\t Cash and cash equivalents net of overdrafts \t\t\t \t\t\t \t\t\t 179.6 \t\t\t \t\t\t \t\t\t 191.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Financial debt net of swaps \t\t\t \t\t\t \t\t\t (266.6) \t\t\t \t\t\t \t\t\t (257.9) \t\t\t \t\t \t\t \t\t\t \t\t\t Net financial debt/adjusted EBITDA 1 (both pre-IFRS 16) \t\t\t \t\t\t \t\t\t 0.8x \t\t\t \t\t\t \t\t\t 0.5x \t\t\t \t\t \t\t \t\t\t \t\t\t Net debt (post-IFRS 16)/adjusted EBITDA 1 \t\t\t \t\t\t \t\t\t 2.6x \t\t\t \t\t\t \t\t\t 2.3x \t\t\t \t\t \t Net financial debt (pre-IFRS 16) increased by £20.5m to £87.0m at 30   June 2025, resulting in a net financial debt to adjusted EBITDA (both pre-IFRS 16) ratio of 0.8x. 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 2025. 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. \t \t\t \t\t\t \t\t\t Available liquidity 1 \t\t\t \t\t\t \t\t\t 30   June 2025 \t\t\t £m \t\t\t \t\t\t \t\t\t 31   December 2024 \t\t\t £m \t\t\t \t\t \t\t \t\t\t \t\t\t Revolving credit facility (RCF) \t\t\t \t\t\t \t\t\t 250.0 \t\t\t \t\t\t \t\t\t 250.0 \t\t\t \t\t \t\t \t\t\t \t\t\t Less: drawing on committed facilities \t\t\t \t\t\t \t\t\t — \t\t\t \t\t\t \t\t\t — \t\t\t \t\t \t\t \t\t\t \t\t\t Undrawn committed facilities \t\t\t \t\t\t \t\t\t 250.0 \t\t\t \t\t\t \t\t\t 250.0 \t\t\t \t\t \t\t \t\t\t \t\t\t Cash and cash equivalents net of overdrafts \t\t\t \t\t\t \t\t\t 179.6 \t\t\t \t\t\t \t\t\t 191.4 \t\t\t \t\t \t\t \t\t\t \t\t\t Less: restricted cash \t\t\t \t\t\t \t\t\t (45.9) \t\t\t \t\t\t \t\t\t (44.2) \t\t\t \t\t \t\t \t\t\t \t\t\t Available liquidity 1 \t\t\t \t\t\t \t\t\t 383.7 \t\t\t \t\t\t \t\t\t 397.2 \t\t\t \t\t \t In July 2025, the Group extended the maturity of the RCF by 12 months to 31   December 2027. The available facility remains at £250m. The RCF was undrawn at 30   June 2025 (31   December 2024: undrawn). In addition, the Group has in place non-recourse trade receivable financing, utilisation of which has become economically more favourable than drawing under the RCF as prevailing interest rates have increased. As such, the Group has continued its use of the facility across the year with the value of invoices sold under the facility at 30   June 2025 of £19.4m (31   December 2024: £23.4m). In March 2025, the Group issued £94.2m equivalent of US private placement loan notes across three tranches: £50m maturing 24 April 2028, USD13m maturing 24 April 2028 and USD43m maturing 24 April 2030, with an average interest rate of 7.4%. The notes rank pari passu with the existing indebtedness of the Group and include financial covenants at the same level as those under the RCF and existing US private placement loan notes. At 30   June 2025, the Group had £179.6m (31   December 2024: £191.4m) of cash and cash equivalents net of overdrafts, and £263.9m (31   December 2024: £269.3m) 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. The Group continues to adopt the going concern basis in preparing these condensed consolidated financial statements as set out 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. Given the funding position of the HPS, the Group and the Trustee of the HPS agreed that no further deficit contributions from the Group would be required other than those already committed as part of the 31   March 2020 actuarial valuation. These committed deficit contributions were satisfied by the end of June 2024. 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 2025 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 2025) was approximately £82m (31   December 2024: net asset £81.0m) on a technical provisions basis. The Trustee of the HPS has also agreed a secondary more prudent funding target to enable it to reduce the reliance the HPS has on the covenant of the Group. On this basis, at 30   June 2025, the funding level was broadly fully funded. The net defined benefit pension position of all reported defined benefit schemes for accounting purposes decreased from a surplus of £37.9m at 31   December 2024 to a surplus of £34.6m at 30   June 2025. The main reasons for this movement are the slight increase in the discount rate (driven by an increase in corporate bond yields) in conjunction with a slight decrease 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 £178.2m at 30   June 2025 (31   December 2024: net assets £195.7m). The decrease predominantly reflects the loss arising on cash flow hedges recognised directly in other comprehensive income in the six months ended 30   June 2025. The loss reflects the weakening of the USD against GBP since 31   December 2024. Following shareholder approval at the Company’s 2025 Annual General Meeting held on 28 April 2025, the parent company (\"the Company\") completed a share consolidation at a ratio of 15 for 1, whereby every 15 ordinary shares of 2 1/15 pence were consolidated into one ordinary share of 31 pence. The Board believe that consolidation of the Company’s ordinary shares will improve marketability of its shares to investors. Also, following shareholder approval at the 2025 AGM and subsequent sanctioning by the High Court of England and Wales, the Company completed the cancellation of its share premium account, with the balance of £1,145.5m credited to retained earnings. The capital reduction optimises the structure of the balance sheet and increase the Company’s distributable reserves. _____________________________________ 1. Refer to alternative performance measures in the appendix 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\" 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 ...

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