Capita welcomes reduced Ofgem cost disallowance for Smart DCC

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

Capita plc has responded to Ofgem’s decision to disallow £11.425m of costs incurred by its wholly owned subsidiary Smart DCC for the 2024/25 regulatory year, down from the initially proposed £30.841m and compared with a £20m disallowance in 2023/24. The group said such price disallowances are a normal part of the regulatory framework governing the Smart DCC contract and noted that the final outcome, reflecting process improvements and cost efficiencies, is broadly in line with assumptions in its 2025 financial results as it prepares to transition the smart metering network contract to a not-for-profit provider in the coming year.

The most recent analyst rating on (GB:CPI) stock is a Buy with a £450.00 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 helps public- and private-sector clients manage complex business processes more efficiently, with a focus on improving consumer experiences. Operating across eight countries and serving mainly UK and European customers, it delivers people-based services supported by market-leading technology and plays a significant role in essential societal infrastructure.

Average Trading Volume: 619,404

Technical Sentiment Signal: Hold

Current Market Cap: £329.9M

For a thorough assessment of CPI stock, go to TipRanks’ Stock Analysis page.