Kelso says portfolio value rises in May as backs Capita turnaround

Kelso Group Holdings PLC on Friday said it has bought shares in Capita PLC in recent weeks, as the London-based investor in UK listed companies backed the turnaround strategy of the outsourcing firm.

Kelso said it now holds 400,000 shares in Capita. They were bought at an average price of 312 pence per share, it said.

Capita shares quoted early Friday in London at 368.17p, up 0.7% on the day, making Kelso’s holding worth £1.5 million. Capita has a market capitalisation of £440.4 million, meaning Kelso’s stake is just below 1%.

Kelso said the Capita holding now accounts for 8% of its gross investments. Kelso has a market cap of £14.4 million. Its shares were down 9.7% to 2.80p early Friday.

Explaining its investment, Kelso said it thinks ‘Capita’s turnaround strategy is gaining momentum’. Capita is ‘seeing the benefits from simplifying operations, reducing its debt position, and divesting non-core assets.

‘Kelso believes there remains further opportunities for potential disposals which could be value enhancing for shareholders.’

At its annual general meeting last month, Capita said it is making ‘good progress’ on the sale of its private sector contact centre business.

London-based outsourcing and business services company said adjusted revenue rose 2.9% on-year in the first four months of 2026, which it said was in line with expectations.

Kelso’s disclosure of its holding Capita came as it provided a portfolio update for May. It said gross assets totalled £19.4 million at the end of the month, with net assets of £14.0 million, or 3.0 pence per share. This is up 35% since the start of 2026.

Kelso said it expects to report pretax profit, including both realised and unrealised gains, of £3.0 million for the half year ending June 30. About a third of this is from net gains on realisations. In the first half of 2025, Kelso recorded a pretax loss of £54,578. For all of 2025, it had a pretax loss of £846,774.

In addition to its investment in Capita, Kelso has holdings in TheWorks.co.uk PLC, NCC Group PLC, CVS Group PLC, Saga PLC, THG PLC, Selkirk Group PLC, and Angling Direct PLC.

Back in April, Kelso said it sold its entire stake in Filtronic PLC, receiving 406p per share for its 500,000 shares, or £2.0 million.

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