Capita has benefited from the renewal of a vital contract with Westminster City Council as the outsourcer navigates a turbulent period for its sector, writes Charlie TaylorKroll.
The FTSE 250 company, which collects licence fees for the BBC and provides software for emergency services, renewed its contract to manage the council’s revenue and benefit services. As part of the deal, Capita will collect council tax and coordinate housing benefits on behalf of the local authority. The contract will be worth up to £65m if it runs for the maximum 10-year period. Capita suffered a blow this year when MPs branded its handling of a British Army recruitment contract a “national disgrace”. The company was supposed help recruit soldiers but only achieved 7pc of its annual target in first three months of the year. However, analysts at Shore Capital said the recent contract offered “welcome news” for Capita. The deal will maintain “a long-term relationship” between Capita and the council, they added. Jon Lewis, chief executive, said that Capita’s knowledge of the needs of the council “underpins the success” of the agreement.
Jon Lewis Chief executive