Capita revises down 2024 profit as exits closed book Life & Pensions

Capita PLC on Tuesday restated its 2024 results as lower than initially reported, to reflect the firm’s exit from closed book Life & Pensions.

The London-based outsourcing and business services firm in December reached a hand back agreement with the remaining client of its closed book Life & Pensions division, which Capita has been in the process of exiting ‘for a number of years’.

This means it will no longer include the division - previously reported under Regulated Services - in its annual results.

Capita has restated 2024 revenue as £2.23 billion, down from £2.37 billion, and operating profit as £84.6 million, down from £95.9 million. It has restated earnings before interest, tax, depreciation and amortisation as £169.0 million, down from £186.1 million.

Additionally, Capita has revised operating cash flow to £82.8 million, up from £72 million, and raised the figure for cash conversion to 49% from the 39% originally reported.

It noted that revenue from closed book Life & Pensions has been in decline due to the exit process, and that the division’s profit and cash flow has been ‘subject to fluctuations as terms are agreed and contracts are migrated.’ In 2024, contract migration led to one-off gains of about £10 million.

‘As part of these migrations, for some clients, we also delivered additional services during the transition which benefitted the 2024 profit and cash performance,’ Capita explained.

Closed book Life & Pensions returned to a loss in 2025, however, ‘reflecting the impact of handed back contracts, non-repeat of the aforementioned one offs and required increases to the onerous contract provisions,’ the company said.

Capita shares fell 3.4% to 338.10 pence on Tuesday morning in London.

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