Capita PLC (LSE:CPI) shares jumped after it agreed to sell its private sector call centre business for a nominal £1, as the outsourcing group sheds another division to focus on its public sector and pensions operations.
The deal comes hot on the heels of a turbulent set of full-year results earlier this month, when the group warned margins would narrow in 2026, weighed down by struggles in the contact centre division it has now agreed to offload.
The buyer is private investment firm Inspirit Capital, with the deal including up to £61.5 million in additional payments tied to the future financial performance of the business and any proceeds from a subsequent sale.
The call centre unit generated revenue of £398.1 million in 2025 but made an operating loss of £34.9 million.
Capita said the disposal would allow it to cut annual costs by around £40 million by 2027, leading it to expect improvements in operating margins and allow investment in technology capabilities in markets where demand was accelerating.
Completion is expected before the group's half-year results in August, subject to regulatory approval, with an investor update planned for 17 June to set out fresh financial targets.
Capita shares jumped 13.4% to 272.6p on the news.