Stock Markets February 19, 2026

Capita wins £137 million pension-services renewal with existing UK client

Renewal covers up to 10 years and takes effect in Q1 2026 as Capita scales technology-led pension operations

By Derek Hwang
Capita wins £137 million pension-services renewal with existing UK client

Capita plc's Pension Solutions division has secured a contract renewal worth £137 million over a potential 10-year period with an existing UK client. The agreement, effective from Q1 2026, is intended to deepen the client relationship as Capita deploys technology and service innovations to increase capacity and improve customer experience. The full IFRS 15 transaction price for the renewed contract is £137 million over the extended term.

Key Points

  • Capita's Pension Solutions business secured a contract renewal worth £137 million over a term of up to 10 years.
  • The renewed agreement takes effect in Q1 2026 and is intended to deepen the existing client relationship while expanding capacity through new technology.
  • Sectors directly impacted include pensions administration and outsourcing; the company serves primarily UK and European public and private sector clients.

Capita plc confirmed on Thursday that its Pension Solutions business has agreed a contract renewal with an existing UK client valued at £137 million, covering a period of up to 10 years.

The renewed arrangement will come into force in Q1 2026 and is structured to extend and deepen the client relationship. Capita said the extension will run alongside continued deployment of technology and other innovations aimed at streamlining transactions, expanding operational capacity, and enhancing the customer experience.

Chris Clements, Managing Director of Capita Pension Solutions, commented on the renewal, saying: "We are delighted to continue to strengthen this relationship, and are looking forward to continuing to deliver an exceptional service, with new technology solutions and tools to improve the customer experience and create better outcomes for all."

Capita reported the total IFRS 15 transaction price (order book) for the contract is £137 million over the 10-year extended term. The company described the value as the amount recognised under IFRS 15 for the duration of the extended contract term.

In its corporate profile, Capita positions itself as a modern outsourcer that helps clients across public and private sectors run complex business processes more efficiently while creating better consumer experiences. The firm operates across eight countries and employs 34,000 colleagues, supporting primarily UK and European clients with people-based services underpinned by technology.

The renewal reinforces Capita's role in the pensions outsourcing market and highlights the firm's continued focus on technology-led service delivery within its Pension Solutions unit. Beyond the headline contract value and term, limited public detail was provided about the specific services covered under the renewal or the identity of the client, other than that it is an existing UK-based relationship.


Summary of the agreement

  • Contract renewal signed with an existing UK client for Capita's Pension Solutions business.
  • Agreement valued at £137 million, payable over an extended term of up to 10 years.
  • Renewal becomes effective in Q1 2026 and is tied to continued rollout of technology and operational improvements.

Risks

  • The article provides limited detail about the specific services and the client identity, which creates uncertainty when assessing the long-term revenue mix and dependency on this contract.
  • Successful delivery of the expected benefits depends on Capita’s ability to implement new technology solutions and operational innovations as planned, an outcome that is not guaranteed by the information provided.
  • The stated £137 million transaction price assumes realization over the full 10-year extended term; if the full term does not materialize, the financial benefit would be lower than stated.

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