Capita Secures Expansion of Royal Navy Training Contract
Why we think this is good
The RNS announcement indicates that Capita has secured a significant expansion of its existing Royal Navy training contract, valued at £97 million. This expands the total contract value to c.£1.3 billion and strengthens Capita's partnership with the Royal Navy. The expanded scope includes delivering critical training services, which aligns with Capita's strategic focus on national preparedness. Capita's proven track record in delivering the existing contract also suggests this expansion is a positive development. However, the lack of financial details and potential risks means the full impact on Capita's performance and valuation is not entirely clear from the RNS alone.
Key Points
- Capita secures £97 million expansion of Royal Navy training contract
- Total Royal Navy training contract value now c.£1.3 billion
- Expanded scope includes training design, delivery, support, quality assurance, and equipment management
- Contract extension of 7 years and 11 months
- Strengthens Capita's partnership with the Royal Navy
Summary
Capita plc has announced the expansion of its existing Royal Navy training contract, valued at £97 million. This increases the total contract value to c.£1.3 billion and extends the term by 7 years and 11 months. Under the expanded scope, Capita will deliver a core range of training services, including design, delivery, support, quality assurance, and equipment management. This contract win underscores Capita's commitment to providing innovative and effective training solutions, as evidenced by the successful delivery of the existing Royal Navy training contract.