Capita selected for Royal Navy training contract

This announcement contains inside information

 
18 December 2020

Capita selected as winning bidder for Royal Navy training contract

Capita plc (‘Capita’) today announces that it has been selected as the winning bidder to provide training services to the Royal Navy and the Royal Marines.

Capita will transform and modernise the Royal Navy’s shore-based training across 16 sites in the UK as the lead partner in a consortium, which bid as Fisher Training.

The contract will be worth an estimated £1bn over 12 years for Capita, with opportunities to deliver further training according to the Royal Navy’s requirements.

Capita will lead the delivery of the new training programme, utilising its expertise in transformation, learning and the delivery of complex, technology-enabled defence projects.

Capita is partnering in the consortium with Raytheon UK, Elbit Systems UK, and Fujitsu, as well as with several smaller British suppliers. The team will work together, each contributing their own areas of proven expertise.

The consortium will combine a range of sophisticated technologies, processes and training management systems to fulfil the contract. It will:

• Review and modernise all training courses and provide accompanying analytics to ensure training methods best meet the Royal Navy’s needs.

• Run live on-the-ground training, and develop and deploy new methods, including

  digital learning and training simulation technology.

• Manage all the associated Royal Navy training equipment including procurement and decommissioning.

• Provide data through performance dashboards for Royal Navy management and manage IT infrastructure.

• Improve accreditation and apprenticeship management, and run Royal Navy learning and development hubs and career advice services.

• Market Royal Navy courses to the wider international defence market and identify further revenue opportunities for the service.

The modernised training service will be designed to provide the Royal Navy with better qualified and more motivated and experienced personnel who are equipped with the skills and expertise needed to deal better with the challenges of the future. 

It will align with the Navy’s wider transformation agenda and is also expected to increase efficiency in delivery, reducing redundant elements of current training and minimising time lost away from the front line for service personnel.

The new service will be delivered by an expected 1,100 of the consortium members’ employees, working alongside Royal Navy personnel.

The contract is expected to be profitable in its first full year in 2021, reflecting Capita’s focus on disciplined bid and risk management processes.

Jon Lewis, Capita’s chief executive officer, said: “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.”

Rear Admiral Phil Hally MBE, the Royal Navy’s Director of People and Training, said: “The award of this 12-year contract to Capita marks a major milestone for Navy Transformation.

“This contract will transform the way we train our people, unlocking more opportunities for them to fulfil their potential and get better trained people to the frontline, quicker.”

Notes to editors:

The total IFRS 15 transaction price (order book) is £925m over 12 years; this excludes the effect of inflation increases over the contract term and other potential training opportunities with the Royal Navy.

Following the selection of Capita as the winning bidder, there is a 10-day standstill period before the contract between the Royal Navy and Capita is signed.

For more information please contact:

Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: [phone]
Email: [e-mail]

Media enquiries
Capita external communications
Tel: [phone]
Email: [e-mail] 

Capita is a consulting, transformation and digital services business. Every day our 61,000 colleagues help millions of people, by delivering innovative solutions to transform and simplify the connections between businesses and customers, governments and citizens. We partner with clients and provide the insight and cutting-edge technologies that give time back, allowing them to focus on what they do best and making people’s lives easier and simpler. We operate in the UK, Europe, India and South Africa – and across six divisions: Customer Management; Government Services; People Solutions; Software; Specialist Services; and Technology Solutions. Capita is quoted on the London Stock Exchange (CPI.L). Further information can be found at: http://www.capita.com

ENDS