Capita Exits Closed Book Life & Pensions Business with Royal London Agreement

An announcement from Capita plc ( (GB:CPI) ) is now available.

Capita plc has reached a transition agreement with Royal London to exit its closed book Life & Pensions business, a segment that has posed challenges for the company. This agreement involves Capita paying Royal London an initial sum of £22.47m, with an option for Royal London to receive this payment in shares. The migration of contracts back to Royal London is expected to take five years, with Capita anticipating a cash outflow of £20m annually during this period. This move is part of Capita’s ‘manage for value’ strategy, aiming to eliminate future cash outflows and focus on sustainable value areas.

The most recent analyst rating on (GB:CPI) stock is a Hold with a £379.00 price target. To see the full list of analyst forecasts on Capita plc stock, see the GB:CPI Stock Forecast page.

Spark’s Take on GB:CPI Stock

According to Spark, TipRanks’ AI Analyst, GB:CPI is a Neutral.

Capita plc’s overall stock score reflects a mixed financial performance with significant leverage and cash flow issues. Strong technical momentum and positive corporate events provide some optimism, but valuation concerns and regulatory challenges temper the outlook.

To see Spark’s full report on GB:CPI stock, click here.

More about Capita plc

Capita plc is a modern outsourcing company that assists clients in both the public and private sectors to manage complex business processes more efficiently, thereby enhancing consumer experiences. Operating in eight countries, Capita employs 34,000 people who primarily support clients in the UK and Europe with services that are bolstered by leading technology. The company plays a significant role in society, impacting the lives of millions daily.

Average Trading Volume: 504,272

Technical Sentiment Signal: Buy

Current Market Cap: £418M

See more insights into CPI stock on TipRanks’ Stock Analysis page.