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UK government awards Capita five-year contract extension worth £93mln

The outsourcing group has had its contract to manage the UK’s Gas Safe Register extended until 2024

gas hobs
Capita has managed the Gas Safe Register since 2009

The UK government has awarded outsourcing group Capita Group PLC (LON:CPI) a new five-year contract worth £93mln.

Capita, which, among others, operates London’s congestion charge system, has had its contract to manage the UK’s Gas Safe Register extended until 2024. It had been due to run out in April of next year.

UK's Gas Safe Register

The register is the official list of gas businesses who are registered to work safely and legally on boilers, cookers, fires and all other gas appliances.

FTSE 250-quoted Capita is responsible for checking the competence of everyone on the list. Last year, it carried out 40,000 inspections on gas works carried out.

The company has managed the list since 2009. As part of the new contract, it will be required to deliver a new digital platform and electronic register via an improved website and mobile app.

READ: Capita poaches Go-Ahead CFO

It will also increase the number of inspections it makes and enhance its contact centres.

Capita chief executive Jon Lewis said: “We are delighted to continue operating the Gas Safe Register as the Health and Safety Executive’s partner of choice.

“This new contract is an example of our expertise in harnessing digital technologies to deliver critical and specialist public services and reflects Capita’s important role as a strategic partner to government, delivering tangible benefits for the public sector.”

HSE director of regulation Philip White added: “The bid from Capita was the strongest on cost and quality and we are confident they will continue to raise the standards of gas safety and provide a gas safe home for everyone.”

Capita shares were broadly flat at 148.7p on Tuesday afternoon.

Quick facts: Capita PLC

Price: 160.45 GBX

Market: LSE
Market Cap: £2.68 billion

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