Capita plc

From WikiCorporates
(Redirected from Capita)
Jump to navigation Jump to search

Capita provides public and private outsourced services in IT, finance, admin, running property and recruiting. The UK accounts for 92% of net sales.

Capita operates 6 divisions.2017 a/cs, p.25

  • Digital and Software Solutions: supplies application software and wider solutions across the public sector, utilities and financial services markets.
    • Education software services provides software to 22,000+ schools. SIMS8, a cloud product, was released in early 2018.
    • Capita has software applications in over 95% of Local Authorities in England, supporting finance functions including benefits claims administration, council tax and rates collection, housing management, parking and debt management for 200+ councils.
    • Policing, justice and emergency services: the secure solutions and services business provides public contact and control room solutions to the emergency services, encompassing contact management, integrated communications and telephony and command and control, together with solutions that support custody, crime and intelligence operations as well as HR and back-office processes. The control room and communication solutions currently support all 10 ambulance services, 36 fire services and 40 police forces. ControlWorks, PoliceWorks, 999Eye.
    • Utilities: the AMT Sybex business provides the main B2B platform for five of the "Big 6" Energy retailers, supporting their field engineers.
    • Mortgage administration: delivering customer-focused technologies such as digital consumer propositions and a broker web portal. Offers an end-to-end mortgage services solution, covering origination, services, administration and recovery. In 2017, a new contract with HSBC was signed, and the relationship with Tesco Bank was renewed.
  • People Solutions: ...
  • Private Sector Partnerships: includes UK customer management business (retail, utilities, media and telecoms sectors), Capita Europe (customer management in Germany and Switzerland), Insurance Services (life and pensions, insurance services and retail banking) and employee solutions (employee benefits and corporate pensions administration).
  • IT Services: IT infrastructure and applications solutions and consulting services for organisations across the private and public sectors, as well as across the group. (see p.35)
  • Professional Services: comprises a portfolio of corporate and specialist services, including commercialised public sector assets and joint ventures.
    • HR solutions: provides full recruitment processing outsourcing (RPO) services for individual projects, or as a fully outsourced recruitment service and pre-employment vetting.
    • Army Recruiting Partnering Project: has been managing the end-to-end recruitment of British Army regulars and reserves since 2014, under a 10-year contract.
    • Travel services: using a proprietary booking and ticketing system, provides an end-to-end booking and ticketing service across rail, air and hotels, providing clients .
    • AXELOS: a joint venture between Capita (51%) and the Cabinet Office (49%). Launched in Jan.2014 to promote and grow the Best Management Practice portfolio, and to jointly realise wider commercial value for taxpayers from the govt’s intellectual property. AXELOS is responsible for developing, enhancing and promoting a number of best-practice methodologies, such as Prince2, ITIL and Resilia, used globally by professionals working primarily in project, programme and portfolio management, IT service management and cyber resilience. (non-controlling shareholders = AXELOS Ltd, Entrust Support Services Ltd and Fera Science Ltd)
    • Food & Environment Research Agency: Fera is a commercial partnership between Capita (75%) and DEFRA (25%), formed in 2015. It provides scientific services to govt, academia and commercial clients, such as food retailers and manufacturers of crop protection products, in the UK and overseas. It specialises in translating scientific knowledge into practical applications, such as helping to ensure food safety and quality ‘from farm to fork’, food authenticity (e.g. Manuka honey), sustainable crop production, environmental management and conservation.
  • Public Services Partnerships: provides business process management services across the public sector and local govt, and real estate, property and infrastructure services into local govt and the commercial property sector.
    • DWP Personal Independence Payments: administration of personal independence payments (PIP) in 2 regions in England and Northern Ireland.
    • Birmingham City Council: IT and digital services
    • Staffordshire County Council (Entrust): provisions of support services to schools.
    • London Borough of Barnet: Customer services, finance, HR and property strategic partnership.
    • NHS Primary Care Support England (NHS PCSE): Support services for GPs, pharmacies, opticians and dental practices.
    • Home Office Electronic Monitoring, Administration of tagging for offenders
    • Home Office Escorting and Detention Services, Removal of overstayers
    • Defence Infrastructure Organisation, management of the Ministry of Defence’s property estate
    • Transport for London: administration of Congestion Charge and Low Emissions Zone
    • DCC Smart Metering: Management, implementation and development of the national smart metering infrastructure.

Note: also collects the BBC licence fee and runs London’s congestion charge.

Company

Shareholders

Total float: 98.7%
Source: MarketScreener.svg, Mar.2020

Structure

ToDo: Reports, http://www.capita.com/investors Investors

Capita plc

  • ... ...
  • Capita Holdings Ltd, [CH]
    • Capita Business Services Ltd, CH
      • 75%: Fera Science Ltd, CH
ToDo: see Dec.2017 a/c, p.196+.

CH. Abu Dhabi, Jersey, Kong Kong, UK, Ireland, Poland, Scotland, Isle of Man, Singapore, South Africa, Luxembourg, Brazil, Malta, Switzerland, Germany, Dubai, Guernsey, India, China, Malaysia, ...

Subsidiaries

Fera Science Ltd

Fera Science, formerly the Food & Environment Research Agency, is a joint venture between Capita (75%) and the Department for Environment, Food & Rural Affairs (25%). Its aim is to "support and develop a sustainable food chain, a healthy natural environment, and to protect the global community from biological and chemical risks".

Fera acts as National Reference Laboratory under EC Regulation No.882/2004 across 7 areas of specialisms. This Regulation establishes a harmonised framework of rules for Member States to adhere to at a Community level for monitoring and enforcing feed and food law to ensure feed and food is safe and wholesome. Another establishment gone to the Brexit wall.

Fera specialises in the sciences underpinning agriculture for sustainable crop production, environmental management and in food safety and quality. Fera has statutory responsibilities for delivering policy and inspectorate functions in relation to Plant Health, Bee Health and Plant Varieties and Seeds. Fera is part of the UK capability to respond to, and recover from, emergency situations, including accidental or deliberate release of hazardous materials.
See also Department for Environment, Food & Rural Affairs § Fera Science Ltd.

Smart DCC Ltd

Smart DCC (Smart Data Communications Company) provides the nationwide telecommunications platform, network and other services that underpin the rollout of gas and electricity smart meters to every household and small business in Great Britain.
OfGem extended, in principle, DCC's Licence obligations to cover the design, build and test phase and early years of operation of the Switching Programme.Jul.2018 a/cs. p.5
Smart DCC reports to the Director General of GEMA.
Service users (energy suppliers, networks and other authorised parties) are charged for interfacing with the communication hubs and accessing data available through smart meters. Highest-paid Director in 2018/8: £403,979 (!!) The Data Communications Company is a subsidiary of Capita Business Services Ltd.

DCC is a monopoly, because all domestic energy suppliers will be required to use DCC services to communicate with smart meters. Regulated by OfGem to ensure they are compliant with their Licence. BEIS oversees and coordinates the joint industry activity during the implementation phase of the SMIP. We report on our SMIP delivery progress to the energy industry and to BEIS.

DCC delivers services through procuring and contracting with service providers. The key service providers are as follows:

  • CGI - Data services provider (DSP): Provides the data systems and services through which customers communicate with smart meters.
  • Arqiva (in the North region) and Telefónica

(in the Central and South regions) - Communication services providers (CSP): Provides the communications infrastructure which connects smart meters to DCC systems. This comprises the nationwide Smart Metering Wide Area Network (SM WAN) andtheCommunicationsHubsthat establish the Home Area Network in the consumer’s premises

  • BT: provides the Smart Metering Key Infrastructure(SMKI) Service,oneofthe primary mechanisms to ensure the security of communications between customers and smart metering devices such as smart meters and Communications Hubs.
  • Critical Software: Provides the “parse and correlate” software, which allows customers to check that the conversion of service requests from one format to another has not altered the underlying request.
  • Capita Business Services: provides a range of services including the service desk, billing systems, enterprise reporting and cloud hosting.ref, p.10

Sept.2013: The Data Communications Company was established as a central communications body, and to run a central database that holds meter readings. The Department of Energy and Climate Change granted Capita's Smart DCC Ltd a licence to establish and manage the smart metering communications infrastructure.

Smart DCC Ltd operates under the Smart Meter Communication Licence which was granted by the Department of Energy and Climate Change (DECC) and is regulated by Ofgem. The licence allows us to establish and manage the smart metering data and communications infrastructure. Under this licence, we must also be a Party to and comply with the Smart Energy Code (SEC) which suppliers, network operators, other Parties and DCC users also need to comply with.

The network is being delivered on the ground by two Communications Service Providers, Arqiva and Telefonica, and a single Data Service Provider, CGI. Arqiva is installing the network infrastructure in the north of England and Scotland while Telefonica is installing across central and southern England and Wales.

Other providers are BT, responsible for the delivery of Smart Metering Key Infrastructure, Critical Software, responsible for Parse and Correlate software and Capita IT Services who will provide enterprise systems.

Together, they make up DCC.

https://www.theguardian.com/commentisfree/2018/apr/23/capita-carillion-outsourcing-local-elections-aditya-chakrabortty https://www.ofgem.gov.uk/system/files/docs/2017/03/2017.02_data_communications_company_dcc_price_control_decision_201511.pdf

Part of the govt’s response to the need to reduce carbon emissions has been to introduce smart meters to replace traditional ones. Consumers will be provided with information to help them them manage their energy use, save money and reduce emissions. Energy suppliers will be able to forecast demand better, reduce their costs and use smart meters as a platform to develop more innovative services. Networks will be able to use smart metering data to improve network management and make informed decisions on investment, including the development of smart grids.
The Data and Communications Company (DCC) is responsible for establishing and managing the common infrastructure necessary to support the main roll-out of millions of smart electricity and gas meters. It forms part of the Government’s wider Smart Metering Implementation Programme. this infrastructure will connect smart meters to the business systems of energy suppliers, network operators and other authorised service users. ref

Primary Care Support England

PCSE has provided administrative and support services for primary care on behalf of NHS England since Sept.2015. The support ranges from key administrative and payment services, to managing supplies, performers list and market entry applications through to moving medical records. We do this and more for GPs, Dentists, Opticians and Pharmacists as well as those working in the teams around them and associated disciplines.
PCSE is moving the delivery of all services from over 40 PCSE offices across England to 4 sites in Leeds, Preston, Blackburn and Clacton; opening a national Customer Support Centre for all customer queries; introducing an online portal to provide easy access to many PCSE services; using one national courier firm, CitySprint (owned by Lloyds Banking Group plc) to provide a more secure system for delivering supplies and moving GP medical records; standardising the way services are delivered nationally; and investing in new, modern IT and updated processes.ref, ref

  • May.17.2018: NHS England’s management of the primary care support services contract with Capita. Primary care support services provide a range of administrative and back‑office functions to around 39,000 primary care practitioners. In Aug.2015, NHS England entered into a 7-year, £330m contract with Capita Business Services Ltd to deliver primary care support services and save 35% of costs. Capita’s bid depended on it closing sites and delivering a major transformation of services to meet NHS England’s objective to reduce its costs, such as introducing an online service for submitting GP payments and ordering medical supplies. In May.2016, primary care providers began raising concerns with NHS England about failures of the PCSE contract, including delays in transferring medical records and problems with the responsiveness of the customer support centre. In Sept.2016, NHS England placed 5 of the 9 support services delivered by Capita in a formal process to improve services. In Dec.2016, NHS England stated that Capita had failed to deliver key aspects of the service, putting primary care services and patients at risk. ... National Audit Office.
  • Jun.22.2015: Capita wins primary care support contract. Capita has been announced as the preferred bidder for the £1bn primary care support services contract. NHS England has confirmed that Capita beat out competition from Capgemini and Equiniti. The stock market was briefed on the decision this morning. Capita was supported on the bid by Anglian Community Enterprise – a social enterprise providing community services in north east Essex, which will work as a subcontractor to Capita. The contract will run for 7 to 10 years with a total value of £400m. The framework used to let the contract allowed for deals of up to £1bn, which at the time was one of the single largest outsourcing deals ever proposed in the NHS. The services are currently provided in-house by NHS England at a cost of £60m a year. National Health Executive.

Tascor Services Ltd

  • Feb.21.2018: Home Office contractors 'cuffed detained migrants' inside coach on fire. Immigration detainees whose coach caught fire as it took them to a deportation flight were handcuffed by escort staff before they were allowed to get off, in breach of Home Office rules. The detainees said that just minutes before the vehicle exploded and as fumes filled the cabin, one of the guards started handing out handcuffs to his colleagues. After the cuffing process, which took several minutes, staff working for the Capita-owned security firm Tascor took the detainees off the bus. A Capita spokesperson said it was “factually inaccurate that when the fire was identified the individuals were then handcuffed”. A spokesperson for Mitie, the outsourcing company that runs Harmondsworth, said that while a leak had been noticed it had not been clear whether it came from the vehicle that caught fire. Eric Allison, Simon Hattenstone, The Times.

Contracts Timeline

  • 2007-2022: Prudential plc outsourced a large proportion of its in-force and new business policy administration. The contract was terminated early in 2018, with Prudential choosing Tata Consultancy Services instead.[1][2]
  • 2004 – 2011: Dept of Work and Pensions records; £70m over 7 years
  • 2004 – 2007: Running miners' compensation; £125m over 3 years
  • 2003 – 2010: Running teachers' pensions; £62m over seven years
  • 2003 – 2013: IT for Criminal Records Bureau; £400m over 10 years
  • 2002 – 2012: BBC TV licence enforcement; £500m over 10 years
  • 2002 – 2007: London's congestion charge; £280m over five years
  • 2001 – 2016: Regeneration for Blackburn council; £190m over 15 years

Criticism

See "Cash for Honours" in Labour Party (UK)

Timeline

  • Jul.2018: Sold ParkingEye to a Macquirie-led consortium, ref
  • Jan.2018: announced the intention to sell the Constructionline business.
  • Nov.2017: disposed of the Capita Asset Services businesse, including Capita Financial Managers Ltd, to the Link Group.
  •  ??date: Dispute with the Co-operative Bank
  • Capita Asset Services indemnity provision: the Group has agreed a full and final settlement with the Financial Conduct Authority regarding the Connaught Income Series 1 Fund. Capita Financial Managers Ltd was the operator of the Fund until Sept.2009, when it was replaced by an unrelated company as operator, following which CFM had no further involvement with the Fund. The Fund went into liquidation in 2012 and its liquidator brought a claim against both former operators, which for its part, Capita settled in 2016 for a sum of £18.5m. CFM has agreed to a further £66.0m. p.140
  • 2017: Capita acquired a number of small businesses to build capability in existing markets, enter new markets and enhance our existing services and solutions. We spent £20.0m in acquiring five niche businesses in software, voice and data, IT, e-commerce and travel and events.
  • Oct.2013: Capita buys ParkingEye, ref, DDG search, CH, Mirror article, website
  • 2012: Acquired Tascor Facilities management. ref, website
  • Feb.2006: Aon Claims Management acquired, the delegated claims operation of Aon UK.ref
  • Mar.2004: Capita Health Solutions: occupational health firm Aon Health Solutions, a workplace health risk management firm, was acquired from US multinational Aon Corporation, and renamed. ref,ref

Articles

  • Feb.2021: The Crown Commercial Service awarded Accenture, Capita and IBM spots on an £800m framework created to help the NHS shift to a more agile and/or DevOps-like approach to development and support. They joined Aire Logic, BJSS, Cognizant, Hippo Digital, Infinity Works Consulting, Informed Solutions, Kainos Software, Mastek and Netcompany on the contracting arrangement intended to build and manage live NHS services and oversee data system migration under the "Digital Capability for Health" scheme.[3]
  • Dec.12.2018: Capita failure over cervical screening letters more extensive than thought. Doctors call for firm to lose contract as number of women affected exceeds 50,000. Capita, which is responsible for GP back-office services as part of a 7-year £330m contract, said a senior executive responsible for the contract had left the company. But the Royal College of GPs said Capita had lost the trust of NHS workers. “Capita has been shown time and time again to be unable to deliver on the work it has been contracted to do in the NHS. This is completely unacceptable, and it really is time for NHS England to reconsider its contract with them.” Haroon Siddique, The Guardian.
  • Dec.06.2018: Capita invites its workers to join board for £65,000 a year. Capita has invited 70,000 employees to apply to join its board as non-executive directors. The two successful employees will take on full boardroom non-executive duties as well as keeping their day job. The appointment of worker-directors on big companies was one of the key ideas of Theresa May when she became prime minister in 2016. However, after a cool reception from the business community, Mrs May has quietly dropped the initiative. Robert Lea, The Times.
  • Apr.25.2018: MPs angered as minister denies Capita could become another Carillion. The government has repeatedly refused to give MPs assurances on what contingency plans it has in place in the event that Capita gets into similar financial trouble to that which resulted in the collapse of Carillion, another major Whitehall contractor, at the start of the year. Capita this week reported a £513m crash into the red as it raised £662m of new funding from investors by a rights issue in which its financial advisers — Goldman Sachs, Citigroup, Barclays and Santander — shared a £39m bonanza in fees. In an emergency debate called by Sir Vince Cable, the Liberal Democrat leader, into the future of Capita, Oliver Dowden, the Cabinet Office minister, repeatedly refused to tell MPs what the govt would do in the event that Capita falls into further trouble. Robert Lea, The Times.
  • How and why Carillion failed: Carillion repeatedly pulled forward £hundreds of millions on profits expected from future work, and paid that cash out to shareholders. Since the huge profits it was booking did not exist, it had to borrow the cash – and the debt was secured against goodwill: its brand name, relations with customers and staff. However hard such things are to value, Carillion reckoned that they were worth a tidy £1.57bn. As MPs discovered to their amazement in Jan.2018, “goodwill” was Carillion’s single biggest asset. It was like an internal Ponzi scheme aided and abetted by ministers such as the hapless Chris Grayling who shut their eyes to the profit warnings and chucked ever more contracts the way of Carillion. Of Britain’s 5 biggest outsourcers, Capita has an even higher proportion of goodwill on its books when set against its assets. Back in Feb.2018, Professor Adam Leaver observed that were the firm’s executives to write down just 25% of the value of that goodwill, they “would wipe out the firm’s equity”. As they have grown, the giant outsourcers’ business model has relied more and more on the public sector playing the role of useful idiot – talking up the importance of private-sector efficiency and never batting an eyelid when the likes of Capita tap them up for some expensive loophole in the contract. Thankfully, that is clearly changing.[4]
  • Apr.01.2018: Bonuses stripped as Capita atones for ‘sins’. Capita is stripping a further two former directors of their bonuses. The company, which runs services ranging from recruiting soldiers for the army to customer services for Tesco Mobile, is attempting to rebuild under new management after profit warnings that sent its shares crashing. Former chief executive Andy Parker (Andy Parker (businessman)Wikipedia-W.svg) is set to lose about £845,000 of bonus payment, equating to ~200% of his salary. Parker was ousted in Mar.2017 after 17 years with the company but did not leave until September. Capita's remuneration committee stripped bonuses from Vic Gysin, former operations director who was ousted in Dec.2017, and Chris Sellers, former business development director whose departure was announced in Jan.2018. Both were on salaries of £360,000, and were entitled to bonuses worth up to 200% of their pay in cash and shares. Capita will not pay out these bonuses, even though performance thresholds have been met. Capita's new boss Jon Lewis and chairman Sir Ian Powell are attempting to revive the company after years of acquisitive growth unravelled, leaving it with a debt pile that totalled £1.2bn at the end of 2017. It is expected to tap shareholders for up to £700m through a deeply discounted rights issue at the end of Apr.2018, and is selling businesses to raise a further £700m. Lewis, former boss of oil services company Amec Foster Wheeler, wants to revive Capita by boosting investment in technology, to put it on a par with more profitable rivals. John Collingridge, The Sunday Times.
  • Mar.11.2018: Capita in £700m fire sale to slash debt pile. The embattled outsourcing giant is plotting a £700m fire sale of assets alongside a heavily discounted rights issue intended to raise the sum. Jonathan Lewis, new chief executive, admitted in Jan. that Capita needed a rescue cash call; he said that 2 businesses would be sold: Constructionline and ParkingEye. Capita had underinvested and relied on acquisitions to fuel growth. Capita has contracts ranging from army recruitment to customer services for Tesco Mobile. Capita has hired consultancy McKinsey & Co to work on its strategy and Bain & Co to help scythe through costs. The Times, John Collingridge
  • Mar.06.2018: Capita's lenders braced for restructuring. A bondholder group in Capita has hired advisers FTI Consulting to look after their interests in the event of a restructuring. The support services sector has been in the spotlight since Carillion collapsed in Jan. Capita issued a shock profits warning only two weeks later. The sector is politically sensitive as it provides services to the govt. Pricoa Capital, a subsidiary of Prudential Financial Inc, is thought to have one of the largest exposures. Interserve, another public contractor, issued two profits warnings last year and is being monitored by the Cabinet Office. Alan McIntosh, who owns Emerald Investment Partners, a private equity vehicle, has bought £tens of millions of Interserve’s debt from its lenders at a big discount. Interserve is talking to its banks to secure funding. The Times, Philip Aldrick
  • Jan.31.2018: Capita: the writing was on the wall, but some didn't see it. The spectacular collapse of Carillion failed to break the spell big names hold over the City. The Guardian, Rob Davies
  • Mar.24.2006: Capita chairman quits after criticism of loan to Labour. Rod Aldridge denies company got contracts from Labour for favours. Chancellor says backers should not be impugned. The row over the £13.9m secret donations to Labour showed no sign of waning yesterday. The Guardian, David Hencke, Andrew Clark

References