Shares in Capita increased by over 8% after it reported "good progress across all strategic priorities".

In the four months to 30 April, the data technology process services provider said its adjusted revenue was in line with expectations, growing by 2.9% compared to the same period in 2025.

Capita said this increase was due to the phasing of some contracts, particularly in Capita Public Service.

This division, which makes up 81% of group revenue, saw its revenue growth jump by 5.8%, after increased contract volumes in central Government and the one-off benefit from higher volumes on a contract in Northern Ireland.

Its retained contact centre business performance reduced by 7% due to some reductions in volumes and project work, while its pension solutions delivered 23.4% growth.

In its outlook, Capita expects low to mid-single digit revenue group in its public service division across the full-year, with mid-teen revenue growth in its pension solutions sector.

The firm added that it is continuing to make good progress on the sale of its private sector contact centre business. In this period, its revenue dropped by 14.6%, which was in line with expectations.

Capita described the sale as an "important milestone" for the group, allowing it to streamline its operations and investments.

As previously announced, the firm is taking actions to deliver annualised savings of around £40m across 2026 and 2027, with the anticipated cash cost to achieve these savings being £20m.

Chief executive officer at Capita, Adolfo Hernandez, stated: "We have made positive progress in the first four months of the year, with adjusted group revenue up 2.9% compared to the same period last year, in line with expectations. We have had positive and deep engagement with Inspirit, the purchaser of the private sector contact centre business and expect the sale to complete ahead of the H1 results in early August.

"We are now planning to hold our investor update after the summer once the contact centre disposal has completed to ensure the separation is fully underway. We continue to make excellent progress against our other strategic objectives to deliver a better Capita, with innovation both internally and for clients, including the launch of Storefront, providing customers with access to the company’s AI, data and digital services via AWS Marketplace.

"We remain fully focused on delivering the administration of the Civil Service Pension Scheme under the project improvement plan with the Cabinet Office."

Capita will announce its H1 results on 4 August.

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