Capita secures £107m contract extension with Education Authority of Northern Ireland
Why we think this is good
This contract extension with the Education Authority of Northern Ireland is a positive development for Capita. The long-standing partnership, valued at £107 million, provides good revenue visibility over the next 2-4 years. While the RNS lacks details on margin levels and earnings impact, the low execution risk and lack of funding requirements or shareholder dilution are positive factors. The key risks are the unquantified financials and the relatively short contract duration, but overall this appears to be a solid contract win for the company.
Key Points
- £107 million contract extension with the Education Authority of Northern Ireland
- Contract runs from 1 April 2025 to 31 March 2027, with option to extend for 2 more years
- Builds on 13-year partnership between Capita and the Education Authority of Northern Ireland
- Capita to continue delivering managed IT services and application services to 1,104 schools across Northern Ireland
Summary
Capita has been awarded a £107 million contract extension with the Education Authority of Northern Ireland (EANI) to continue delivering managed IT services and application services to all 1,104 schools across Northern Ireland. The contract runs from 1 April 2025 until 31 March 2027, with an option to extend for two years on a 1 + 1 basis. This extends Capita's long-standing 13-year partnership with the EANI.