Last updated 29th June 2022
Capita plc
Capita plc is a major support services group which is a leading UK provider of business process management and integrated professional support service solutions.
The group”s Real Estate and Infrastructure division – which is part of group of businesses earmarked for disposal by the parent company (see Financials below) – works with public bodies and private firms to design, build and optimise real estate and infrastructure assets.
Today, Capita Real Estate and Infrastructure provides specialist project, design, environmental and health & safety advice for infrastructure and buildings and with sector expertise covering highways, rail, aviation, water, power & gas and flood protection.
The group is also a strong player in the housing sector as an adviser and a partner to Transport for London and should benefit from increased infrastructure spending. It is also a major player in strategic partnering with UK local authorities, providing a wide range of managed services including property, highways, regulatory services and development control.
Acquisitions in recent years have included BCS Design, a civil and geotechnical surveying firm and architects GL Hearn. Capita’s transaction advisory team was the independent certifier on the Mersey Gateway Bridge and the firm has worked on major infrastructure projects including HS2.
Financials
To view the financials for Capita Plc, visit Companies House and use Company ID 02081330.
Capita has restructured in the face of some tough trading conditions in recent years, partly as local and national government budgets have come under pressure and it was inevitably been hard-hit by Covid. Following a re-organisation, the group reported a pre-tax profits of £286 million for 2021, compared to a loss of £49 million previously on revenues down 4% at £3,182.5 million. At the end of 2021, net debt stood at £879.8 million, down from £1,077.1 million previously.
However the real estate and infrastructure division forms part of Capita plc’s property-related businesses which is one of a portfolio group of businesses which have been earmarked for disposal. In all, the portfolio set for disposa l- which includes other sectors such as travel and business solutions – generated an operating profit of £23.8 million in 2021, up from £14.2 million previously, on little-changed revenues of £413.4 million.
In late June 2022, the group said it expected to have launched the disposal processes of all its remaining Portfolio businesses by the end of the year. Meanwhile, the group said its first-half performance was in line with expectations, with further revenue growth, important contract renewals and wins and a strengthening balance sheet.
Operations
Capita”s real estate & infrastructure arm works for a wide range of sectors including transport infrastructure, utilities, housing and residential, defence, education, commercial property, industrial and manufacturing, energy, water and waste, healthcare and local and central government.
The division works widely for major public sector and infrastructure clients including National Highways, the Environment Agency, HS2, Network Rail, Transport for London, National Grid, Southern Water, Transport for North and Transport for Wales as well as Birmingham City and Cumbria county councils.
Capita Real Estate and infrastructure was recently appointed on six Lots by Crown Commercial Service on its new new £2.5bn Transport Technology and Associated Services Framework which runs for two years from October 2021. It provides a wide range of transport technologies and services for the aviation, road, rail and marine sectors across the public sector.
Other key frameworks where Capita holds positions include: Crown Commercial Services – RM3741 – Project Management and Full Design Team Services for the delivery of property and construction projects across the UK; Cumbria County Council Professional Services Framework; NHS Shared Business Services – Construction Consultancy Services; Procure Partnerships – Professional Services Agreements, across some 40 Lots; Scotland Excel – Engineering and Technical Consultancy; South East Wales Transport and Professional Services Framework; South West and Mid Wales Civil Engineering Framework; Transport for Greater Manchester Transport Professional Services Framework; Welsh Government – National Procurement Service (NPS) – Property Consultancy DPS and YorConsult 2 Professional Services Framework.
Key contract wins in recent years have included the next stage of London Luton Airport expansion plans where Capita is providing specialist aviation, planning and multidisciplinary design and management services.
In the rail sector, Capita has been appointed to Network Rail’s design services framework, winning several lots for consultancy services for upgrade and maintenance projects for the utility”s control period 6. Capita is designing the Country North section of High Speed 2, a 78km section of rail through Warwickshire and Staffordshire.
Meanwhile, the group is a strategic business partner for the Defence Infrastructure Organisation, on a 10 year contract worth around £400m where Capita leads a partnership of two sub-contractors, URS and PA Consulting, to manage and transform the UK”s defence infrastructure
Capita also works for many of the UK’s largest investment funds, property companies and retailers. It has been involved in hq buildings for Eversheds and Stryker UK and acquisitions programmes for retailers such as Abercrombie & Fitch as well as workplace strategies for major employers such as Network Rail and Bupa. It also works widely across the health and education sectors and has provided design, project management and other services for 60 academies and nine free schools.
Capita also designs and builds major infrastructure for the industrial and utility sectors. The firm is the National Grid’s property services provider, managing a £400 million portfolio of surplus sites and is responsible for some 500 brownfield sites across the UK.
Glenigan Data
Glenigan data highlights the range of projects which Capita is involved with. They show that Capita is the architect on the Kendal Flood Risk Management Scheme Phase1 in Cumbria where work is set to start late in 2022 and run for eight months (Project ID: 21212552). Meanwhile, Capita is the M & E consultant on a new £70 million healthcare facility being built for Camden & Islington NHS Foundation Trust where work is set to run until spring 2023 (Project ID: 20144159).
Conclusion: Set to remain a major force in the outsourcing sector
Capita’s Real Estate & Infrastructure division may be destined for new ownership but the business should still benefit as managers in national and local government as well as the private sector recognise the advantages of oursourcing property services. The division should be able to take advantage of the need for property & infrastructure owners to work their assets harder and exploit commercial opportunities, particularly against a background of growing investment in infrastructure and housing. As pressures on public sector budgets are likely to sustain the trend towards outsourcing and as its project management and design skills are increasingly recognised by private sector developers, the group”s long term prospects remain solid.
Winning Work With Capita Plc
Full contact details for all of the offices across Capita Real Estate & Infrastructure are available via the group’s website. The group has produced a supplier expression form which is available from the group”s website: here
Key Capita contacts include:
Dave Spencer – Managing Director, Capita Real Estate & Infrastructure.
0207 709 4500
Michael Anderson – Executive Director – Buildings and Utilities
0207 709 4500
Peter McDermott – Executive Director – Transport Engineering
0207 709 4500