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Business & education services

Capita stock in demand after £92m Southern Water deal

Capita PLC (LSE:CPI) shares rose 6% in early trading on Thursday after the outsourcing group announced a £92.4 million contract extension with Southern Water.

The deal, secured by Capita’s Contact Centre division, will run for five years from July 2026, with an initial three-year term worth £56.3 million and an optional two-year extension worth £36.1 million.

Under the agreement, Capita will continue to handle a broad range of customer services for the utility, including voice calls, social media responses, complaints and billing support. It will also manage early-stage collections and back-office tasks from several UK sites.

The stock rose 0.7p to 12.36p.

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