Capita PLC £528m contract extension with European telecoms provider

 
TIDMCPI 
 
15 June 2021 
 
 
Capita signs £528m contract extension with major European telecoms provider 
 
Capita plc ('Capita') today announces it has been awarded a customer management 
contract extension with a major European telecoms provider. 
 
Building on the current framework contract, the extension now has a minimum 
volume base and is worth up to £528m in total to the order book including a 
four-year contract extension beginning January 2023, a pre-priced option for a 
further three-year contract extension, and a volume underpin for 2022. 
 
Capita has been partnering with this client for more than 20 years, delivering 
24/7 customer service. Capita provides support on a range of products and 
services including technical assistance for mobile phone and TV products, as 
well as order fulfilment support for residential and business customers. Capita 
is also part of the process that supports the online chat facility by managing 
outbound responses to customers. 
 
The current contract started in 2012 and has consistently scored high net 
promoter scores from both our client and their customers. 
 
Capita employs more than 1,000 full-time, highly trained local people on this 
contract, who are committed to delivering the best possible customer service 
and have significant knowledge of both the product and market. 
 
Jon Lewis, Capita's chief executive officer, said: "The award of this contract 
extension reflects our extensive experience and expertise in customer 
management, our telecoms domain expertise, and the knowledge and understanding 
we have developed of this client's business and their needs over the past 20 
years. 
 
"We have continued to deliver exceptional quality of service, achieving 
consistently high satisfaction scores from both our client - and their 
customers - and look forward to continuing to partner with and deliver for 
them. 
 
"This is another example of Capita executing on its strategy to deliver for its 
clients, creating better outcomes for clients and their customers, and helping 
improve our own cash and margin performance." 
 
 
Notes to editors: 
 
The total IFRS 15 transaction price (order book) is £528m. This includes £264m 
for the four-year contract extension, £198m for the pre-priced option for a 
further three-year contract extension and £66m of revenue for 2022 which now 
qualifies for inclusion in the order book. 
 
Previous contracts have not been included within the order book as the 
contractual arrangements did not meet the relevant IFRS 15 definition and were 
therefore treated as framework agreements. 
 
 
For more information, please contact: 
 
Investor enquiries 
Stuart Morgan 
Director of Investor Relations 
Tel: [phone] 
Email: [e-mail] 
 
Media enquiries 
Capita external communications 
Tel: [phone] 
Email: [e-mail] 
 
 
About Capita 
 
Capita is a consulting, transformation and digital services business. Every day 
our 55,000 colleagues help millions of people, by delivering innovative 
solutions to transform and simplify the connections between businesses and 
customers, governments and citizens. We partner with clients and provide the 
insight and cutting-edge technologies that give time back, allowing them to 
focus on what they do best and making people's lives easier and simpler. We 
operate in the UK, Europe, India and South Africa - and across six divisions: 
Customer Management; Government Services; People Solutions; Software; 
Specialist Services; and Technology Solutions. 
 
Further information can be found at: http://www.capita.com 
 
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(END) Dow Jones Newswires

June 15, 2021 02:00 ET (06:00 GMT)