Capita

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Capita plc
Type Public limited company
Traded as LSE: CPI
Industry Business process outsourcing
Founded 1984
Headquarters London, United Kingdom
Key people Martin Bolland (Chairman)
Andy Parker (Chief Executive)
Products BPO & service transformation
Back office administration
Customer service
Finance & treasury
Claims & policy administration
HR, staff support & training
ICT & software
Corporate services
Advisory services
Property & infrastructure
Offshore outsourcing
Revenue £3,850.9 million (2013)[1]
Operating income £516.9 million (2013)[1]
Net income £171.9 million (2013)[1]
Employees 65,000 (2013)[2]
Website www.capita.co.uk

Capita plc (LSECPI), commonly known as Capita, is an international business process outsourcing and professional services company headquartered in London, United Kingdom. It is the largest business process outsourcing and professional services company in the UK, with an overall market share of 27% in 2009, and has clients in central government, local government and the private sector.[3] It also has a property and infrastructure consultancy division which is the fourth largest multidisciplinary consultancy in the UK.[4] Roughly half of its turnover comes from the private sector and half from the public sector.[3] Whilst UK-focused, Capita also has operations across Europe, Africa and Asia.

Capita is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History[edit]

Capita was formed in 1984 as a division of the non-profit CIPFA (Chartered Institute of Public Finance and Accountancy). In 1987 it became an independent company with 33 staff as a result of a management buy-out, led by Rod Aldridge, and was first listed on the London Stock Exchange in 1991.

In March 2006, Executive Chairman Rod Aldridge resigned in the aftermath of claims that contracts awarded to the Group were influenced by his loan of £1 million to the Labour Party. Aldridge resigned saying that he denied the claims, but to avoid any lingering doubts about it, he was leaving the company. Aldridge had overseen the company's growth from a small company in 1987 to a FTSE 100 member in 2006.[5]

In February 2007, a Capita office in Victoria, London was subject to a letter bomb attack. One person was injured.[6]

On 2 October 2009, one of Capita's businesses (Capita Financial Group) announced plans to move some of its operations from London to Leeds.[7][8][9]

On 1 July 2011, Capita acquired Ventura, a customer contact specialist for a cash consideration of £65 million.[10]

On 28 February 2013, Capita bought the Fire Service College from the Department for Communities and Local Government for £10 million.[11]

Operations[edit]

Capita works across eight markets - local government, central government, education, transport, health, life and pensions, insurance, and other private sector organisations (including financial services).

Examples of their activities include - a television licence fee contract for the BBC, won from the Post Office; provision of IT services, including web hosting and helpdesk support, to many county and city councils, many LEAs, the Driving Standards Agency and the National Rail (NCCA); full ownership of CHKS, a hospital accreditation scheme and healthcare informatics group;[12][13] ownership of a number of health clinics;[14][15] insurance[16] and occupational health services.[17]

In 1998, Capita won the contract to run Constructionline, the newly created Public-Private Partnership currently owned by the Department for Business, Innovation and Skills (BIS).[18]

Capita manages the Criminal Records Bureau for the Home Office. In 2002, when mandatory CRB-vetting of all workers with children was brought in, a large number of teachers were temporarily unable to work after Capita's systems had difficulty with the workload and were subsequently overwhelmed, meaning that the start of the academic year was delayed in some places. Poor systems specifications and last-minute changes in government policy by the then Secretary of State for Education, Estelle Morris are believed to have been significant factors in these delays.[19]

In 2006 Capita Financial Administrators (CFA) was fined £300,000 by the Financial Services Authority for having poor anti-fraud controls .[20]

Capita entered the healthcare recruitment market during May 2011[21] through acquisition of Team24, a healthcare recruitment specialist - extending the services they offer within the recruitment industry.[22]

Capita also intended to enter into the legal services market and entered into a funding arrangement with the Law Firm Optima Legal Services Limited which saw them, in the period between May 2006 to the end of 2009 invest a total of £36,700,000 by way of investment loans into Optima.[23] As part of the funding arrangement Capita Group had the option of acquiring the shares of Optima Legal Services for the nominal sum of £1 upon the full implementation of the Legal Services Act 2007 which would make ownership of law firms by the likes of Capita possible. It is thought that such Alternative Business Structures ("ABS") could be lawful around October 2011.[24] However, on 9 August 2010 it was reported that the Solicitors Regulatory Authority ("SRA") had found that the arrangement breached its rules in that it effectively amounted to an ABS.[25] As a consequence, Optima Legal Services Lead Litigation and Property Partners, Philip Robinson and Anthony Ruane respectively were both severely reprimanded by the SRA for what was found to be professional misconduct and only narrowly avoided referral to the Solicitors Disciplinary Tribunal[26] and Adrian Lamb, former CEO of Optima Legal Services Limited, left the business in June 2010.[27]

Property, Engineering & infrastructure services are provided under the Capita Symonds brand.

Education services[edit]

  • SIMS.net – Schools Information Management Software a Management information system used in 70% of primary and secondary schools across England and Wales to record many aspects of student data.[28] In March 2009, Capita SIMS was said to be responsible for sending a truancy warning notice to the family of a Cheshire school student who had died two months before.[29] SIMS also links with Capita One (through a process called B2B), which is a database used within Local Education Authorities for general analysis and overview of pupil and school data.[30]
  • Individual Learning Account – A £290million scheme intended to give financial support to adult learners that was opened in 2000 and scrapped in 2001 following widespread and massive fraud.[31]
  • Connexions Card – A £109million scheme that involved issuing 16 to 19 year olds with smart cards that recorded their lesson attendance and rewarded them with discounts on consumer goods. It ran from 2002 until it was terminated in 2006 owing to lack of uptake.[32]

Partnerships[edit]

Groupcall[edit]

Groupcall are commercial and SQL technical partners with Capita.[34] They are official resellers of Groupcall's mobile app Emerge, which enables schools to access their school information management system data on Apple iOS or Android devices.[35]

Financial performance[edit]

The Company's results are as follows:[1]

Year People Turnover (£ million) Pre-tax profit (£ million)
1984 2    
1987 33    
1991 320 25  
1992 687 33  
1996 3,500 112 12.3
1998 5,000 238 27.1
1999 7,000 327 36.3
2000 8,500 453 51.2
2001 13,000 691 72.1
2002 17,000 898 98.2
2003 19,000 1,081 121.2
2004 23,000 1,282 148.6
2005 24,000 1,436 177.2
2006 27,000 1,738 193.2
2007 29,000 2,073 228.7
2008 32,600 2,441 226.6
2009 34,600 2,687 258.1
2010 35,400 2,744 309.8
2011 46,500 2,930 302.9
2012 52,500 3,352 425.6
2013 65,000 3,851 215.0

Senior management[edit]

Paul Pindar joined Capita in 1987, he has been chief executive since 1999. For this role he is paid £375,000 salary and £525,000 bonus, giving a total annual compensation of £900,000.[36]

Criticism[edit]

Capita Group has not always been received well by the public and in the media. It has gained the nickname Crapita, particularly from the coverage in the satirical/investigative magazine Private Eye, which routinely documents the company's many failures and setbacks in the public sector.[37][38]

Pindar himself has attracted criticism for complaining about being called a 'fat cat', despite receiving a £770,000 per annum salary and driving around in an Aston Martin DB9. "It really takes the biscuit - especially when you consider his workers are fighting for a rise equivalent to just four pints of milk a week", said a workers' representative. The average Capita employee salary at the time was £28,000 per year.[38]

It was revealed in January 2013 that Capita was embroiled in a scandal over misinforming people that they had to leave the U.K. as they had no valid visa. One such person was in fact the holder of a U.K. passport.[39]

In 2014, a leak to The Guardian revealed that the DWP had to send civil servants in to help the company process personal independence payments for the seriously ill and the disabled. "Waiting times for assessment," the newspaper noted, "have been so long that in some cases people with terminal conditions have died before receiving a penny."[40]

References[edit]

  1. ^ a b c d "Preliminary Results 2013" (PDF). Retrieved 9 March 2014. 
  2. ^ Capita Group: About Us
  3. ^ a b "The Capita Group Plc Annual Report and Accounts 2009". The Capita Group Plc. Retrieved 30 August 2010. 
  4. ^ "Capita facts and stats – year end 2009". The Capita Group Plc. Retrieved 30 August 2010. 
  5. ^ "Capita boss quits over Blair loan". BBC News. 23 March 2006. Retrieved 12 February 2007. 
  6. ^ Woman hurt in letter bomb blast BBC News, February 2007
  7. ^ Jobs boost as Capita looks North Yorkshire Post, 2 October 2009
  8. ^ Capita Financial's London staff placed in consultation process FT Advisor, 30 September 2009
  9. ^ FTSE 100 financial group in Yorkshire move The Business Desk, 2 October 2009
  10. ^ Contracts/Deals: Capita buys Ventura Recruiter, 1 July 2011
  11. ^ UK Fire Service College sale completed to Capita BBC News, 28 February 2013
  12. ^ Capita acquires CHKS
  13. ^ The CHKS Story
  14. ^ Capita Health & Wellbeing
  15. ^ Capita Health
  16. ^ Capita Insurance
  17. ^ Capita to acquire Aviva's occupational health business
  18. ^ Capita wins contract to run online construction register
  19. ^ "History of checks U-turns". BBC News website. 4 September 2002. Retrieved 12 February 2007. 
  20. ^ Capita Financial fined for Fraud accessed 26/05/06)
  21. ^ "Capita Group Purchase Team24 and Enter Healthcare Recruitment Industry". Team24 website. 31 May 2011. Retrieved 1 July 2011. 
  22. ^ Team 24
  23. ^ "Capita: Annual Report 2009". Capitareport2009.co.uk. Retrieved 18 April 2011. 
  24. ^ Dowell, Katy. "Neuberger MR calls for regulatory reform as ABS timeline is unveiled". Thelawyer.com. Retrieved 18 April 2011. 
  25. ^ Dowell, Katy (9 August 2010). "Optima reprimanded by the SRA over Capita investment". Thelawyer.com. Retrieved 18 April 2011. 
  26. ^ "Solicitors Regulatory Authority". Sra.org.uk. Retrieved 18 April 2011. 
  27. ^ "SEO Adrian Lamb leaves Optima – 8th June 2010". Todaysconveyancer.co.uk. Retrieved 18 April 2011. 
  28. ^ Supplier feels the hand of Becta Guardian, 4 October 2005
  29. ^ Dead girl given truancy warning BBC News website, 25 March 2009
  30. ^ "Capita One and SIMS overview". Capita-cs.co.uk. Retrieved 18 April 2011. 
  31. ^ Schools scandal hits Capita accessed 26/05/06
  32. ^ "Evaluation of Connexions Card". Dcsf.gov.uk. 20 December 1932. Retrieved 18 April 2011. 
  33. ^ Liberata axed from school grant contract IT Pro, 19 November 2008
  34. ^ "Groupcall SIMS Emerge". Capita SIMS. Retrieved 23 August 2012. 
  35. ^ Our history
  36. ^ "Paul Pindar: Executive Profile & Biography". BusinessWeek. McGraw-Hill. Retrieved 2 September 2009. 
  37. ^ Simon Bowers Capita deals with £3.3bn of government spending as more work is outsourced, The Guardian, 19 November 2010. Retrieved 2011-11-17.
  38. ^ a b How dare you call me a fat cat, I only earn £14,500 a WEEK, Daily Mail Online, 15 December 2010. Retrieved 2011-11-17.
  39. ^ BBC News - Migrants wrongly told to leave UK by firm hired by UKBA, BBC News, 3 January 2013. Retrieved 2013-01-03.
  40. ^ "Civil servants deployed to help Capita clear PIP assessments backlog". The Guardian. 6 April 2014. Retrieved 7 April 2014. 

External links[edit]