Navy deal doesn’t float Capita shares

The price of shares in FTSE 250 outsourcing specialist Capita (LON:CPI) dropped by 2.74% to 39.81p (as of 13:05 GMT) despite the firm announcing a new contract with the Royal Navy. The deal to supply training services is worth £1 billion over 12 years and is expected to be profitable from 2021 onwards.

CEO Jon Lewis commented: “We are delighted that the Royal Navy has selected us as the winning bidder following this highly competitive process, as we grow our capability in the defence training market.

“The award is a measure of the confidence and trust the Royal Navy and the Ministry of Defence have in Capita’s expertise in the transformation and digitally enabled delivery of critical defence services. It also reflects the strong relationship Capita has with the Government as a strategic supplier.

“We look forward to working with the consortium of world-class partners that Capita has brought together and the Royal Navy to transform, modernise and create better outcomes for the training service.“