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An update from Capita plc ( (GB:CPI) ) is now available.
Capita plc has agreed to sell its private sector contact centre business to investment firm Inspirit Capital, continuing a strategic simplification that pivots the group more tightly around its Public Service and Pension Solutions divisions. The disposal, which excludes retained public-sector contracts, follows operational improvements in the contact centre unit and is expected to support Capita’s ambition to become an AI-led business process outsourcer.
The transaction is structured for an initial £1 consideration with £6.5m of cash left in the divested business and the possibility of up to £61.5m in contingent payments based on future performance and cash generation. Capita expects the deal and an associated simplification programme to deliver about 200 basis points of adjusted operating margin improvement by 2027, generate roughly £40m in annualised savings for a £20m cash cost, reduce lease liabilities, and support positive free cash flow in 2026, while investors are promised more detail on strategy and capital allocation at a June update.
The most recent analyst rating on (GB:CPI) stock is a Hold with a £230.00 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 CPI Stock
According to Spark, TipRanks’ AI Analyst, CPI is a Neutral.
The score is driven primarily by weak financial performance (recent loss, margin compression, high leverage and thin equity, and poor free-cash-flow generation) and bearish technicals (price below major moving averages with negative momentum). Valuation provides limited offset given the negative P/E and no dividend yield data.
To see Spark’s full report on CPI stock, click here.
More about Capita plc
Capita plc is a UK-based business process outsourcing group that delivers complex, technology-enabled middle and back-office services. The company focuses on large, growing markets such as public services and pension administration, where demand for digital and AI-driven transformation is increasing.
Average Trading Volume: 681,979
Technical Sentiment Signal: Strong Sell
Current Market Cap: £288M
For detailed information about CPI stock, go to TipRanks’ Stock Analysis page.