Capita has taken a decisive step in its operational strategy by agreeing to sell its private sector contact centre business to Inspirit Capital for a nominal £1. This move marks a significant shift from prior expectations, as the company aims to streamline its operations and enhance profitability.

Before this development, Capita’s contact centre unit generated a revenue of £398.1 million in 2025. However, it reported an operating loss of £34.9 million, highlighting the challenges faced by the business. The sale comes at a time when Capita is focused on improving its financial health and operational efficiency.

The immediate numbers from the sale indicate that upon completion, £6.5 million in cash will be retained in the business for normal working capital purposes. Additionally, there is a potential contingent consideration of up to £61.5 million, expected to be paid in 2027 and 2028, which could provide further financial benefits.

Adolfo Hernandez, a representative from Capita, stated, “The sale of the private sector contact centre business further simplifies the group and will enhance our margin expansion.” This sentiment reflects the company’s broader strategy to reduce complexity and focus on core operations.

Looking ahead, Capita expects to deliver about 200 basis points improvement in adjusted operating margin by 2027. This improvement is part of a larger goal to achieve annualised savings of approximately £40 million across 2026 and 2027, with an anticipated cash cost of £20 million to achieve these savings.

The transaction is expected to be value accretive, unlocking material overhead reductions as Capita removes further complexity from its operations. This strategic shift underscores the company’s commitment to enhancing its financial performance and operational efficiency.

As Capita moves forward with this sale, the implications for both Capita and Inspirit Capital will be closely monitored. The decision to divest from the contact centre business reflects a broader trend in the industry towards consolidation and specialization.

Details remain unconfirmed regarding the full impact of this sale on Capita’s overall business strategy and financial outlook, but the initial steps indicate a clear direction towards improved margins and operational focus.

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