|Type||Public limited company|
|Traded as||LSE: CPI|
|Industry||Business process outsourcing|
|Headquarters||London, United Kingdom|
|Key people||Martin Bolland (Chairman)
Andy Parker (Chief Executive)
|Products||BPO & service transformation
Back office administration
Finance & treasury
Claims & policy administration
HR, staff support & training
ICT & software
Property & infrastructure
|Revenue||£3,850.9 million (2013)|
|Operating income||£516.9 million (2013)|
|Net income||£171.9 million (2013)|
Capita plc (LSE: CPI), 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. It also has a property and infrastructure consultancy division which is the fourth largest multidisciplinary consultancy in the UK. Roughly half of its turnover comes from the private sector and half from the public sector. Whilst UK-focused, Capita also has operations across Europe, Africa and Asia.
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.
On 1 July 2011, Capita acquired Ventura, a customer contact specialist for a cash consideration of £65 million.
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; ownership of a number of health clinics; insurance and occupational health services.
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.
Capita entered the healthcare recruitment market during May 2011 through acquisition of Team24, a healthcare recruitment specialist - extending the services they offer within the recruitment industry.
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. 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. 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. 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 and Adrian Lamb, former CEO of Optima Legal Services Limited, left the business in June 2010.
Property, Engineering & infrastructure services are provided under the Capita Symonds brand.
In June 2014 it was reported that at least five of eight Liverpool NHS Trusts who had contracted their payroll and recruitment to Capita in 2012 were withdrawing because of concerns about the quality of the service provided. Several NHS trusts contracted with the company for human resources services. West London Mental Health NHS Trust cancelled their contract in September 2014 after the company proved “unable to meet acceptable ‘time to hire’ targets”, particularly for nurses. At the same time Alder Hey Children's NHS Foundation Trust and Liverpool Heart and Chest Hospital NHS Foundation Trust terminated their contracts.
- 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 pupil data. In March 2009, Capita SIMS was said to be responsible for sending a truancy warning notice to the family of a Cheshire school pupil who had died two months before. 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.
- 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.
- 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.
- Capita Education Resourcing - Capita Education Resourcing is an education recruitment specialist with a large networks of schools, colleges and nurseries across England and Wales. They have 19 offices covering teaching jobs operating throughout the UK.
In 2014, Capita were awarded the contract to introduce postcodes to the Republic of Ireland. The Irish communications minister has welcomed the implementation claiming that the Irish code will be the first in the world to be unique to each individual address. Implementation of this ambitious scheme will take place during 2015.
The emergency services have expressed concern that the new system may lead to responders having difficulty getting to incidents. Further, the Irish Data Protection Authority has raised concerns over the design of the code as information about individuals will be made more accessible. Liam Duggan, CEO of Capita Ireland recently stated at a Government enquiry that they had thoroughly tested the new system for unsuitable words and even used a game of Scrabble for this purpose.
The project is generally running to programme and budget unlike many other Government information technology projects: roll out, which was originally planned to start in March 2015, will now take place in "mid-2015" and the cost, which was originally budgeted at €25 million has only increased to €27 million.
Groupcall are commercial and SQL technical partners with Capita. 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.
The Company's results are as follows:
|Year||People||Turnover (£ million)||Pre-tax profit (£ million)|
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.
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.
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.
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."
- "Preliminary Results 2013" (PDF). Retrieved 9 March 2014.
- Capita Group: About Us
- "The Capita Group Plc Annual Report and Accounts 2009". The Capita Group Plc. Retrieved 30 August 2010.
- "Capita facts and stats – year end 2009". The Capita Group Plc. Retrieved 30 August 2010.
- "Capita boss quits over Blair loan". BBC News. 23 March 2006. Retrieved 12 February 2007.
- Woman hurt in letter bomb blast BBC News, February 2007
- Jobs boost as Capita looks North Yorkshire Post, 2 October 2009
- Capita Financial's London staff placed in consultation process FT Advisor, 30 September 2009
- FTSE 100 financial group in Yorkshire move The Business Desk, 2 October 2009
- Contracts/Deals: Capita buys Ventura Recruiter, 1 July 2011
- UK Fire Service College sale completed to Capita BBC News, 28 February 2013
- Capita acquires CHKS
- The CHKS Story
- Capita Health & Wellbeing
- Capita Health
- Capita Insurance
- Capita to acquire Aviva's occupational health business
- Capita wins contract to run online construction register
- "History of checks U-turns". BBC News website. 4 September 2002. Retrieved 12 February 2007.
- Capita Financial fined for Fraud accessed 26/05/06)
- "Capita Group Purchase Team24 and Enter Healthcare Recruitment Industry". Team24 website. 31 May 2011. Retrieved 1 July 2011.
- Team 24
- "Capita: Annual Report 2009". Capitareport2009.co.uk. Retrieved 18 April 2011.
- Dowell, Katy. "Neuberger MR calls for regulatory reform as ABS timeline is unveiled". Thelawyer.com. Retrieved 18 April 2011.
- Dowell, Katy (9 August 2010). "Optima reprimanded by the SRA over Capita investment". Thelawyer.com. Retrieved 18 April 2011.
- "Solicitors Regulatory Authority". Sra.org.uk. Retrieved 18 April 2011.
- "SEO Adrian Lamb leaves Optima – 8th June 2010". Todaysconveyancer.co.uk. Retrieved 18 April 2011.
- "Trusts exodus from Capita HR contract". Health Service Journal. 18 June 2014. Retrieved 14 July 2014.
- "Three trusts end Capita HR contracts". Health Service Journal. 30 September 2014. Retrieved 24 October 2014.
- Supplier feels the hand of Becta Guardian, 4 October 2005
- Dead girl given truancy warning BBC News website, 25 March 2009
- "Capita One and SIMS overview". Capita-cs.co.uk. Retrieved 18 April 2011.
- Schools scandal hits Capita accessed 26/05/06
- "Evaluation of Connexions Card". Dcsf.gov.uk. 20 December 1932. Retrieved 18 April 2011.
- Liberata axed from school grant contract IT Pro, 19 November 2008
- "Capita Education Resourcing - Proud Supporters of National Supply Teacher Week 2014". The Supply Teacher. Retrieved 24 July 2014.
- "Ireland to develop national postcode system by 2015". 8 October 2013. Retrieved 23 November 2014.
- "Claims that Eircode will ‘confuse emergency services and cost lives’ denied". The Journal. October 2014. Retrieved 26 November 2014.
- "The Data Protection Commissioner is very worried about the new postcode system. Here’s why…". The Journal. May 2014. Retrieved 26 November 2014.
- "Your new postcode won’t say ‘F1CK’ or ‘IRA’. Here’s why". The Journal. November 2014. Retrieved 26 November 2014.
- "New €27 million postcode system promises significant benefits". Offaly Independent. 19 November 2014. Retrieved 26 November 2014.
- "Groupcall SIMS Emerge". Capita SIMS. Retrieved 23 August 2012.
- Our history
- "Paul Pindar: Executive Profile & Biography". BusinessWeek. McGraw-Hill. Retrieved 2 September 2009.
- Simon Bowers Capita deals with £3.3bn of government spending as more work is outsourced, The Guardian, 19 November 2010. Retrieved 2011-11-17.
- 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.
- BBC News - Migrants wrongly told to leave UK by firm hired by UKBA, BBC News, 3 January 2013. Retrieved 2013-01-03.
- "Civil servants deployed to help Capita clear PIP assessments backlog". The Guardian. 6 April 2014. Retrieved 7 April 2014.