Capita bags £425m TfL extension as it completes contact centre disposal

Latest in a series of contract wins and renewals secured by the Capita over the past 12 months

Capita has won a five-year extension to its Transport for London (TfL) Road User Charging contracts just days after completing the sale of its private sector contact centre business.

The extensions, which run from October 2026 to September 2031, are expected to generate around £424.6 million over the initial term and include options to extend for a further two years to September 2033.

The deals cover TfL’s Business Operations and Enforcement Operations, supporting London’s Congestion Charge, Ultra Low Emission Zone (ULEZ), Low Emission Zone (LEZ) and Tunnels User Charging schemes.

“We are delighted to have secured this extension and to continue supporting TfL in the delivery of London’s Road User Charging services,” said Gavin Dunkley, MD of Capita’s public transport sector.

“This extension reflects the contribution of many people across Capita and our supply chain partners who have successfully delivered and transformed these services over a number of years, combining operational expertise with technology to support the evolution of London’s Road User Charging schemes.”

The renewal adds to a series of contract wins and extensions secured by Capita over the past year.

In March, it secured a £17 million renewal with Staffordshire County Council, a two-year prolongation worth £5 million with a distribution client and was selected to deliver the £370 million Synergy Business Process Services contract for four UK government departments.

A month earlier, it secured a pensions contract extension with an existing UK client worth £137 million over a term of up to ten years as well as an Emovis Dartford print and fulfilment contract worth £1.27 million, with additional postage services estimated at £10.5 million.

In January, it secured a three-year renewal to its contract with the BBC and a four-year deal worth nearly £9 million with Kent County Council.

Other contract wins and prolongations over the past 12 months include a £62m contract renewal with a European telecom provider, a two-to-three-year contract with Central London Community Healthcare NHS Trust, contract extensions worth more than €15 million with four Irish brands, a three-year renewal worth £33 million with a UK financial services provider, a three-year extension covering four UK councils, a four-year contract with Transport for London and a three-year extension with ScottishPower.

Capita’s private contact centre unit disposal

The announcement follows the completion of Capita’s sale of its private sector contact centre business to Inspirit Capital, which closed on 31st July in line with terms announced in March.

The business was sold for £1, with £6.5 million of cash retained within the unit for working capital purposes, as part of the firm’s plan to simplify the business and focus on higher-margin services.

Capita said the completed transaction will allow it to streamline operations while continuing to progress towards its target of delivering around £40 million of annualised cost savings across 2026 and 2027.

In addition to the £1 sale price, the agreement includes contingent consideration of up to £61.5 million, payable between 2027 and 2030 subject to performance conditions.

Pro forma financials released alongside the completion showed that, following the disposal, H1 2025 revenue would have fallen from £1.15 billion to £892.2 million, while FY25 top line would have reduced from £2.2 billion to £1.8 billion.

Adjusted operating profit is also expected to be hit, as issues surrounding its Civil Service Pension Scheme contract are set to impact it by between £25 million and £40 million in 2026.

The contact centre business is not the first disposal Capita has made over the past year.

In October, it completed the sale of the assets of mortgage servicing business Western Mortgage Services Limited (WMSL) to Topaz Finance Limited.

This article first appeared on Computing’s sister title CRN UK.