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, where the unit was seen as a revenue-generating asset.
Before this development, the call centre unit generated substantial revenue, reporting £398.1 million in 2025. However, it also faced challenges, with an operating loss of £34.9 million the same year. The sale reflects Capita’s ongoing efforts to streamline its operations and enhance profitability.
Upon completion of the sale, Capita will retain £6.5 million in cash within 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, indicating a long-term financial strategy.
Adolfo Hernandez, a spokesperson for Capita, stated, “The sale of the private sector contact centre business further simplifies the group and will enhance our margin expansion.” This sentiment underscores the company’s commitment to reducing complexity and improving operational efficiency.
Capita anticipates a 200 basis points improvement in adjusted operating margin by 2027, alongside annualised savings of approximately £40 million across 2026 and 2027. However, achieving these savings is expected to incur a cash cost of £20 million.
The decision to divest the contact centre business is a clear indication of Capita’s strategic pivot towards more profitable ventures. This transaction is expected to be value accretive and will unlock significant overhead reductions.
As Capita moves forward, the focus will be on leveraging this sale to bolster its financial health and operational efficiency. The implications of this transaction could resonate throughout the industry, potentially influencing other firms to reassess their own operational structures.
Details remain unconfirmed regarding the future operational plans of the contact centre business under Inspirit Capital, but the sale is poised to reshape Capita’s trajectory significantly.