So OpenAI has finally released its much-anticipated GPT-5 AI model. In a livestream last night CEO Sam Altman and a number of different OpenAI developers gave us a glimpse into some of the capabilities of what it claims is the latest and greatest AI model on the market. Altman said this latest version of ChatGPT was like having “access to a PhD-level expert in your pocket”. But how much of a step change is this and what does it really mean for SITS suppliers and end-user organisations?
OpenAI has made its own model landscape increasingly bloated and difficult to understand, hiding many of its more capable features from your average user, something it has finally recognised and acted upon. A string of confusingly named models is being done away with. GPT-5 will be the only model organisations need to use, consolidating and replacing both its reasoning and ‘dumber’ models, as well as offering a number of improvements. GPT-5 is not actually one model as much as it is a switch that selects among multiple GPT-5 models of various sizes and abilities, but what the crux of this all means is that even free users will now get access to more advanced reasoning and generative capabilities.
New features of GPT-5 include fewer factual errors, or hallucinations; better software coding, allowing it to create functional websites and apps; increased capability at creative writing; and rather than “refusing” a prompt that breaches its guidelines outright, the model will instead try to give the most helpful response possible within safety guidelines, or at least explain why it cannot help. The release also introduced significant personalisation features, including customisable chat colours, adjustable personalities (from supportive to sarcastic), and enhanced memory capabilities.
My first impressions of GPT-5 are that it is certainly a step change, but if I am honest, it was somewhat underwhelming. It feels like less of a leap than we saw from GPT-3 to 4 and certainly still some distance from the mythical state of AGI. I was also expecting more in-built agentic features and industry specific capabilities, but instead OpenAI took a different tack, leaning heavily on its value to software developers. Whilst OpenAI claims this is significant leap in AI development, for many organisations I wonder just how much of a difference this will make to their AI journey right now.
TechSectorViews subscribers can read further analysis in our short report ‘OpenAI GPT-5: What does it mean for SITS suppliers?’, where we explore the impact of GPT-5 on Code creation and Healthcare, as well as what the launch of GPT-5 means for SITS suppliers.
Posted by: Simon Baxter at 11:29
Nasdaq-listed CDW has announced its Q2 results, with net sales up 9.8% (constant currency) to $6.0bn in the quarter to end June. $2.6bn of that came via “Corporate” clients, where growth was strongest and compensated for slower/no growth elsewhere (the rest of the business spans “Small business” and “Public”. Reported net sales for CDW’s UK and Canadian operations, combined as “Other“, increased a commendable 11.6% to $672m.
EPS was $2.60, meaning both top line revenue and EPS reportedly beat financial analysts’ expectations.
One of the firm’s priorities is to supplement its organic growth (and expand its strategic capabilities) with acquisitions. Over the past six years, it has made 11 acquisitions, including Mission Cloud Services Inc last December. Indeed, bolstering capabilities in the services and solutions space is key to CDW. Earlier this month, it announced the hiring of Mukesh Kumar as its Chief Services and Solutions Officer. Kumar will lead the firm’s Integrated Technology Solutions and Digital Velocity practices.
In October of last year, Penny Williams became the new CDW UK MD “as part of a wider local exec shake up”. CDW now positions in the TechMarketView ranking of IT Service providers. See where: UK SITS Supplier Rankings 2025.
Posted by: Kate Hanaghan at 09:45
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results
Public sector-focused business process player Maximus reported solid third-quarter results with revenue climbing 2.5% to $1.35bn and adjusted diluted earnings per share rising to $2.16, well up on the prior year’s $1.74. The government services provider showed a resilient performance across its portfolio with organic growth reaching 4.3%.
The standout performer was the U.S. Federal Services segment, which delivered 11.4% revenue growth to $761.2m, fuelled by increased clinical program volumes. Operating margins expanded to 18.1% from 15.5% year-over-year. In contrast, the U.S. Services segment declined 6.9% as prior-year Medicaid volumes normalised. However, the Outside U.S. segment (of which the UK business is a big part) showed encouraging 7.3% organic growth despite some portfolio divestitures.
Management raised full-year guidance for the third consecutive quarter, now expecting revenue of $5.375 to $5.475bn and adjusted EPS of $7.35 to $7.55. The improved 13% adjusted EBITDA margin outlook signals continued operational efficiency gains. While near-term cash flows faced pressure from payment timing issues, the company’s $44.7bn pipeline and consistent government revenue should help Maximus achieve further growth.
Posted by: Marc Hardwick at 09:25
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results
Genpact has doubled down of late on its AI-led business process services offer with a series of noteworthy investments – see here and here. The firm’s pivot towards AI-centric services helped it off to a strong start to the FY in its first quarter (see here), that has continued into Genpact’s Q2 2025 results, with revenues of $1.25bn representing 6.6% year-over-year growth that exceeded guidance. The standout performance came from Advanced Technology Solutions, which surged 17.3% to $293m, now comprising 23% of all revenue.
The company’s “GenpactNext” strategy looks like it is gaining traction, evidenced by a tripled AI pipeline and over 270 GenAI solutions that it claims are now in production. This should help position Genpact favourably in the rapidly evolving BPS market, where AI differentiation is becoming critical for sustainable growth.
Particularly noteworthy for me is the quality of the Advanced Technology Solutions revenue—70% annuity-based and with 70% coming from non-FTE commercial terms, suggesting stronger margins than traditional labour-arbitrage-based models. Partnership revenues also grew an impressive 70% year-over-year (now some 10% of total revenue), indicating successful partnership growth with the hyperscalers (e.g. AWS) and platform players (e.g. Salesforce).
Management’s raised full-year guidance (4-6% revenue growth vs. prior 2-5%) reflects confidence in its ability to deliver, though the 30% of annual growth targets still requiring delivery in H2 suggests some back-end loading of expectations and associated risk.
The strategic focus on integrating process intelligence with AI capabilities is flavour of the month in BPS, as clients increasingly seek partners who can operationalise AI at scale rather than merely deploy the technology. Genpact’s domain expertise combined with accelerating AI adoption positions the company well to mine this seam, though competitive pressures from both traditional players and AI-native firms will have to be successfully navigated.
Posted by: Marc Hardwick at 08:43
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results
Posted by: UKHotViews Editor at 07:00
The ExCeL Centre played host to the London E-Prix at the end of last month, and I took the opportunity to speak to TCS President of Manufacturing, Anupam Singhal and Jaguar TCS Racing’s Team Principal, James Barclay. I was keen to hear more about, not only the tech innovation seen on track days (and the backroom prep leading up to the races), but also how the technologies that support prestige Formula E motorsport are set to trickle down to mere mortals and their cars (and also enjoy wider, cross-sector tech and knowledge transfer too).
TCS became Jaguar TCS Racing’s Official Technology Partner in 2021, and since then it’s helped Jaguar create digital twins of its cars and models of E-Prix tracks – allowing the team to fine-tune the vehicles and prepare racing strategy.
In this HotViewsExtra article we look at how innovations in automotive manufacture (like using quantum computing to optimally calculate the thickness of metal sheeting, reducing weight and hence increasing battery range; and using AI to speed up vehicle modelling processes for simulations, thereby compressing design phases) are transferring from TCS’ experience from the E-Prix to domestic EV production. We also examine how industrial digital twins are starting to be used to predict and promote sustainability characteristics – signposting progress from ‘Industry 4.0’ (the integration of emerging and enabling technologies like analytics, AI, IoT, 3D printing, and cloud) towards ‘Industry 5.0’ (still using advanced tech, but where tools and techniques seek to promote the welfare of people and planet).
TechMarketView subscribers, including UKHotViews Premium subscribers, can read TCS tech transfer from Formula E to family cars now. If you aren’t a subscriber – or aren’t sure if your organisation has a corporate subscription – please contact Belinda Tewson to find out more.
Posted by: Craig Wentworth at 07:00
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manufacturing
innovation
automotive
EV
motorsport
digital twins
Health and social care software supplier System C has expanded its presence in Australia and New Zealand through the acquisition of Brisbane-headquartered MYP Technologies. Terms of the deal have not been disclosed.
MYP started life in 1999 as a management consulting business called Access Management Consultants (AMC). Through various iterations it now provides healthcare software covering disability and elderly care management, employee-assistance programmes, medicolegal services, and allied and community health services. It currently supports over 1,000 providers of varying sizes across this range of health and care settings.
The range of services provided by MYP aligns well with those of System C, including its CareFlow electronic patient record platform, maternity solution BadgerNet, and Liquidlogic social care services. System C already has an established footprint in Australia and New Zealand, including a national maternity contract and the provision of a child protection solution across the Northern Territory.
System C has ambitious plans to grow its Australia and New Zealand business, and this acquisition will provide a step change in these ambitions. The knowledge and resources MYP has across the region will drive new opportunities for System C’s solutions, particularly in social care. The deal will also allow MYP to fast-track its growth in the UK, where its case management software is already being used by several organisations. Customers will also benefit from a joined-up support function that can now provide 24/7 capabilities.
The deal, which follows the acquisition of CIS Oncology in October 2024 (see System C acquires CIS Oncology), aligns well with System C’s M&A strategy (see System C’s strategic evolution continues). There appears to be a good cultural fit between the organisations and a strong focus on the convergence between the health and care sectors. It provides an exciting opportunity for the business to significantly expand its international operations.
Posted by: Dale Peters at 09:36
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acquisition
health
Australia
healthcare
social+care
New+Zealand
Business process player, Conduent delivered another mixed bag of results for the second quarter of FY25. Company adjusted revenue for the three months ended 30th June was down 8.9% (Q125: -8.5%) yoy at $828m whilst the associated EBITDA margin both held flat sequentially and increased by 180 bps yoy to 4.9%. The above expectations improvement in the latter metric provides further evidence that Conduent’s portfolio rationalisation efforts are now delivering tangible results.
New business signings of $150m were up both qoq and against Q224 lifting net new ARR activity by $63m for the trailing twelve months. The sales pipeline was described as robust supported by increasing demand in the company’s Transportation segment. There was also a marked sequential improvement in Conduent’s still negative cash flow numbers. Having deteriorated by a worrying c.57% yoy in Q1 (see here), operating cash flow in the second quarter was up by over three fifths to -$15m.
Looking ahead to the end of the year, Conduent has trimmed the top end of revenue guidance for FY25 while raising the bottom end of the adjusted EBITDA projection. The revised figures now estimate that turnover in the period will land somewhere in the range of $3.1bn to $3.2bn (previously $3.1bn – $3.25bn) delivering a margin of between 5.0% and 5.5% (previously 4.5%-5.5%). The new numbers indicate that, at best, the company will only see a very modest yoy top line improvement as demand in the BPS market remains subdued. The sector is showing signs of recovery from its recent slowdown, although TMV’s latest forecast sees its growth rates remaining well below the peak seen in the immediate post-pandemic recovery period (see here).
Posted by: Duncan Aitchison at 08:59
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Having seen revenue in its Contact Centre business decline 20% in the first six months of the year (mainly down to contract attrition) Capita will be relieved to have secured a three-year contract extension with Scottish Power. The deal, secured through competitive tender, extends a partnership launched in 2022 across five critical customer service streams including prepayment and smart meter support (Capita wins £63m deal with ScottishPower).
The service will move to Capita’s growing Cape Town delivery centre looking to drive further efficiencies into the service. The solar-powered, six-star Green-rated site demonstrates the importance of balancing operational efficiencies and scalability with ESG commitments—increasingly important for utility sector clients.
Perhaps more significantly, the contract will showcase the deployment of Capita’s performance management platform Centrical and the joint development of Scottish Power’s CCAi generative AI system. All important components as Capita looks to move its customer services offering up the value chain away from pure-play cost arbitrage.
Posted by: Marc Hardwick at 08:36
Serco’s June H1 trading update (Serco ups guidance on solid H1) outlined a company successfully navigating challenging market conditions while setting itself up for future growth. This morning’s H1 results provide more colour, while demonstrating the strategic merit of a pivot toward defence, with the government services contractor posting decent growth amid a challenging operating environment.
The headline numbers tell a story of steady progress. Revenue climbed 5% at constant currency to £2.4bn, while underlying operating profit grew 2% to £146m. More impressive was the underlying margin expansion in its expanding North American business to 10.6%. The standout metric was order intake of £3.2bn, with a healthy 134% book-to-bill ratio. Crucially, over 80% of new orders originated from defence contracts, validating the company’s move toward this higher-growth, higher-margin vertical. The £1bn UK Armed Forces recruitment contract and Royal Navy maritime services deals shows Serco’s ability to win large-scale, complex multi-year government programmes.
The MT&S acquisition, completed for $327m, adds further scale and capabilities in the lucrative US defence market, increasing North American revenues to $2bn annually. This transaction appears well-timed given rising global defence expenditure and demonstrates sensible capital allocation.
However, challenges remain visible in Asia Pacific, where the Australian immigration contract exit continues to weigh on performance, despite margin improvements. The regional pipeline rebuild remains a management priority.
Looking ahead, an £11.9bn pipeline—the largest in over a decade—provides strong visibility for future growth. Management’s confidence is reflected in a new £50m share buyback, bringing total shareholder returns since 2021 to approximately £390m. With leverage at a conservative 0.9x EBITDA and unchanged full-year guidance (having just been raised), Serco appears well-positioned to capitalise on improving tailwinds in government outsourcing and defence spending.
Posted by: Marc Hardwick at 08:17
Posted by: UKHotViews Editor at 07:00
Following Tuesday’s announcement of Mastek as our headline sponsor, we are delighted to communicate that CommsCo, the tech PR and digital marketing agency, will be our media partner for the second year running.
CommsCo specialises in helping scaleup tech brands differentiate themselves and capture target audience attention. Through their ‘more for less PR’ approach, they partner with technology companies seeking market breakthrough via agile strategies, intelligent positioning, and compelling campaigns. CommsCo’s proven ability to navigate the rapidly evolving technology landscape makes them an ideal partner for many of our members.
As our strategic partnership transitions into its second year, we are appreciative of CommsCo’s comprehensive PR expertise. They consistently deliver effective results, expanding our reach and securing valuable placements in respected outlets including The Raconteur and the BBC.
Following the overwhelming success of our 2024 event, we’re excited to welcome over 200 of the UK tech sector’s most influential voices to the prestigious Mall Galleries on Thursday, 2nd October 2025. This year, attendees will experience the exceptional artwork of Hannah Shergold during an exclusive private viewing, creating the perfect backdrop for high-value networking and strategic industry conversations.
Join us for an unforgettable evening where insight meets influence. Connect with CxOs, VPs, and thought leaders while gaining vital market perspectives from our analyst team and distinguished guests.
Don’t miss this premier annual gathering where the UK tech community’s most important connections are made. Secure your place at ‘An Evening with TechMarketView 25’ today.
Ready to join CommsCo as a partner?
We’re always open to fresh perspectives. If you think we would benefit from working together, please contact Deb Seth for an exploratory discussion.
Posted by: UKHotViews Editor at 07:00
The Royal Borough of Greenwich has become the second London borough to select TechnologyOne‘s OneCouncil Financials solution, following Islington Council‘s partnership announced in January (see TechnologyOne partners with Islington Council for SaaS+ Financials). The deal represents another significant win for the ASX-listed supplier as it continues its aggressive push into the Local Government market.
Greenwich’s decision to implement OneCouncil under TechnologyOne’s ‘Solution-as-a-Service’ SaaS+ model reflects the growing appetite among councils for low-risk implementation approaches that avoid the substantial upfront costs traditionally associated with enterprise resource planning (ERP) deployments. SaaS+ bundles implementation, support, and upgrades into a single commercial arrangement – see TechnologyOne: Connected systems for seamless digital experiences), and is clearly resonating with authorities keen to minimise both financial and delivery risk.
The council cited the need for greater automation, enhanced reporting capabilities, and more consistent business processes as primary drivers for the procurement. Like many councils, Greenwich faces mounting pressure from financial constraints and increasingly complex service demands, and it’s looking to OneCouncil Financials’ real-time insights and forecasting tools to optimise budgetary management and help it better anticipate the needs of the borough’s residents and businesses.
TechnologyOne’s Chief Operating Officer, Stuart MacDonald, positioned the win as part of the company’s broader momentum, noting partnerships with over 50 UK local authorities. With its UK annual recurring revenue up 70% in FY24 (see University of Chester selects TechnologyOne for cloud ERP), TechnologyOne appears well-positioned to capitalise on the sector’s ongoing digital transformation imperative – particularly as councils seek lower-risk routes to modernisation.
Posted by: Craig Wentworth at 13:02
OpenAI has unveiled its first open-weight language models in over five years, marking a strategic pivot from its recent proprietary focus. The two models, gpt-oss-120b and gpt-oss-20b, are now freely available on Hugging Face under the Apache 2.0 licence, allowing developers to download, modify, and commercialise them without restrictions.
This release represents a significant shift for the ChatGPT maker, which last shared model weights with GPT-2 in 2019. The smaller gpt-oss-20b can run on consumer devices with 16GB of memory, whilst the larger variant requires a single Nvidia GPU. Both operate offline and behind firewalls, addressing enterprise security concerns that cloud-based solutions cannot match.
The timing appears strategic. Chinese AI firms, particularly DeepSeek, have gained prominence this year with cost-effective open-weight models that surprised Silicon Valley. This is in addition to the open-source models available from the likes of Meta, which continue to be an attractive option for many organisations. The Trump administration has also urged American AI developers to embrace open-source approaches to promote US technological values globally.
The models incorporate chain-of-thought reasoning, similar to OpenAI’s o1 series, enabling step-by-step problem solving. Despite being text-only, they can browse the web, execute code, and call cloud-based models for tasks beyond their capabilities. OpenAI is already working with partners including French telecommunications giant Orange and cloud-based data platform Snowflake to explore real-world applications of the models, signalling strong enterprise interest in the technology.
OpenAI delayed the release several times for safety testing, examining potential misuse scenarios. This involved filtering out certain harmful data related to Chemical, Biological, Radiological, and Nuclear (CBRN) and teaching the model to refuse unsafe prompts and defend against prompt injections. Whilst the models showed higher hallucination rates than OpenAI’s proprietary offerings, they performed competitively against other open-weight alternatives from DeepSeek and Alibaba’s Qwen.
OpenAI is expected to release its new flagship model GPT-5 imminently, which could set a new benchmark for the top performing AI models. However, the return to open development suggests the firm recognises that maintaining AI leadership requires balancing proprietary innovation with collaborative approaches, especially as global competition and the war for talent intensifies. Open-weight models have a very different set of strengths, so I don’t think OpenAI see this as at odds with its commercial ambitions. If anything, in the long run such a move is likely to allow the AI firm to further corner the market for LLMs and drive more organisations to its commercial API-based models as use cases mature.
Posted by: Simon Baxter at 09:56
Danish jewellery manufacturer Pandora and French fashion house Chanel have both become the latest casualties in an escalating wave of data breaches targeting Salesforce customers. The attacks, orchestrated by the ShinyHunters extortion group, have compromised customer information through sophisticated social engineering tactics.
Pandora, which operates 2,700 locations globally with over 37,000 employees, notified customers that unauthorised parties had accessed their contact details through a third-party platform. The breach exposed customer names, birthdates, and email addresses, though passwords and financial information reportedly remained secure. Chanel detected similar unauthorised access to its database on 25th July, with security publication BleepingComputer confirming both incidents stemmed from compromised Salesforce instances.
The attacks follow a consistent pattern. Threat actors employ voice phishing and social engineering techniques to target company employees and help desks, either stealing Salesforce credentials directly or deceiving staff into authorising malicious OAuth applications. Once inside, attackers download entire Salesforce databases, subsequently demanding ransoms to prevent data leaks.
ShinyHunters confirmed to BleepingComputer they’re privately extorting affected companies, threatening mass data sales or leaks for non-payment, mirroring tactics used in previous Snowflake attacks. Other confirmed victims include Adidas, Qantas, Allianz Life, and LVMH subsidiaries Louis Vuitton, Dior, and Tiffany & Co., though many more breaches are believed to remain undisclosed.
Salesforce maintains their platform hasn’t been compromised, attributing breaches to customer security lapses rather than platform vulnerabilities. The company urged customers to implement multi-actor authentication, enforce least privilege principles, and carefully manage connected applications. Whilst the details being stolen are not sensitive financial information, it will still be of great concern to those whose personal information is exposed for all to see. It also remains a concerning development that so many large enterprises are being exposed for a lack of poor data security fundamentals, and surely represents a driver for further cybersecurity investment.
Posted by: Simon Baxter at 09:46
Edinburgh-based Approov has raised £5m in a Series A round, led by Maven Capital Partners, illustrating investor interest in specialised mobile API security solutions. The funding arrives as organisations grapple with AI-driven threats and evolving regulatory frameworks like the EU’s Digital Markets Act.
Approov’s patented mobile attestation technology provides real-time protection against sophisticated threats including credential ‘stuffing bots’ (attacks exploiting users reusing the same usernames and passwords across multiple websites) and ‘app tampering’ (things like injection of malicious code). The company’s claim of reducing API attacks by 95% should position it well with clients demanding high security standards such as healthcare, fintech, and connected vehicles.
The investment logic appears pretty sound given two key market drivers: first, the proliferation of AI-powered attack vectors requiring advanced countermeasures; second, regulatory changes enabling direct app distribution, potentially helping developers reclaim up to 30% in platform fees.
Approov’s cloud-first approach also should offer some advantages over traditional code, particularly as mobile ecosystems fragment beyond the Apple-Google duopoly. With an established customer base and its own IP, the company should be positioned to make good on the estimated multi-billion-dollar growth of the mobile security market. The company intends to use the funding to bolster its R&D team in Edinburgh.
Posted by: Marc Hardwick at 09:14
Finance platform specialist, Aptitude Software has made further steps towards its objective of becoming a SaaS-led, partner-first organisation.The London-HQ’d company’s H125 results report a 13% yoy increase in annual recurring revenue (ARR) from its AI Autonomous Finance offerings to £17.3m. This kept firm-wide ARR in positive growth territory for the six months ended 30th June with a 3% yoy improvement to just shy of £50m.
The continuing churn from Aptitude’s legacy products and clients dragged turnover for the period down by 7% against H124 to £32.8m. The change in the company’s business mix did, however, produce a positive impact on the bottom line. Adjusted operating profit was up 17% in the first half to £4.9m with the associated margin climbing 300 bps to 14.9%.
Sales of Aptitude’s Fynapse data platform showed particular resilience and include four new enterprise wins in H1 with a total contract value of £7.4m. The company’s new “partner-first” go to market model also gained further traction with 70% of Aptitude’s 2025 and 2026 pipeline described as partner-influenced.
Two years on from embarking on its repositioning, however, Aptitude remains a company very much mid-transition. There appear to be growing concerns among investors that the strategy has yet to result in a reversal in the downward top line trajectory. Since the H125 results were outlined in a trading update six weeks ago, the company’s share price has fallen by more than 16%.
Posted by: Duncan Aitchison at 08:41
Posted by: UKHotViews Editor at 07:00
IT services provider Version 1 has won another significant UK public sector contract, this time as strategic technology partner for Lincolnshire County Council. The relationship is set to run over an initial term of 6 years and 10 months (with options to extend for up to two further two-year periods) with a total contract value of £193m – beating the company’s previous record-holder, a seven-year £95m deal with the Scottish Government, announced in May.
The deal is wide-ranging, covering a breadth of services including IT operations (service management, user support, etc.), support for applications (on-premise and in the cloud), management of on-premise and cloud data centre infrastructure, LAN/WAN management, cybersecurity, service design and programme management, and service development. The £193m contract value has been set to reflect a strategic scope with provision for “future growth, service evolution, and technological change”, requiring Version 1 to be able to “initiate, accelerate or respond to transformation programmes, emerging technologies, and cross-sector collaboration opportunities […] with health, emergency services and other public sector bodies”.
It’s a stipulation that clearly anticipates service join-up over the coming decade, with the council’s IT provision needing to be ready to work across traditional sector boundaries (and also to take advantage of opportunities for infusions of AI and automation alongside its business-as-usual).
Version 1’s growth is being driven by its ability to secure long-term, big-ticket strategic public sector deals – with the company’s win at Lincolnshire coming after a €102.7m (c. £87m) deal with the Irish Department of Education (to provide an integrated HR and payroll SaaS solution for up to 15 years), a five-year £45m contract with Companies House to be its strategic delivery partner, and a £47.5m 5+2 year contract to support digital transformation at National Highways.
Posted by: Craig Wentworth at 11:39
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contract
Local Government
In line with the trajectory described in its five-month trading update published seven weeks ago (see here), Capita closed out H125 with adjusted revenue down 4% year-on-year at £1.155bn. The improving strength of the company’s Public Service division, turnover in which was up 3.8% year-on-year to £712m for the six months ended 30th June, was not enough to offset the 20% decline in the top line of Capita’s Contact Centre business. The latter continued to feel the impact of previously announced contract losses and subdued volumes in the Telecommunications vertical.
Capita reported a first half loss before tax of £9.5m (H124 profit: £60.0m). This drop included both £23.4m of costs associated with the Group’s cost reduction programme and the impact of business exits in the prior year. The firm’s adjusted operating profit for the period decreased 22% to £42.6m.
Beneath these headline figures, however, there were a number of positive signs of improvement since the start of 2025. The total value of contracts won by the Group increased by 17% compared with the first half of last year to over £1bn. This was driven by a 53% jump in the sales closed by Capita Public Service on the back of expansions secured with the Royal Navy and renewals and extensions with Gas Safety Register, Education Authority Northern Ireland and Primary Care Support England. The company’s unweighted pipeline now stands at £11.7bn with £4.4bn of these opportunities involving higher technology-based solutions, reflecting the increasing interest from customers in Capita’s growing portfolio of AI-driven offerings.
There was continued progress too during H1 on the realignment of the company’s cost base. Actions were taken during the period to deliver £190m annualised cost savings at the end of June, which have since increased to £205m as at 31st July 2025. Capita remains on track to deliver previously announced £250m target by year end, by which time the company expects to be free cash flow positive; a critical inflection point for investor confidence.
Buoyed by the first half performance, management has left full year guidance for a modest improvement in Group margin unchanged. Adjusted FY25 revenue is still expected to be broadly flat with Capita Public Service guidance upgraded to mid-single digit revenue growth offset by a mid-teens reduction in Contact Centre turnover.
Posted by: Duncan Aitchison at 10:42
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results
bps
public sector
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