Busi­ness In­sight

Capita

The Daily Telegraph - Business - - Business Comment -

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

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