Capita preferred bidder for Staffordshire joint...
27 November 2012
Capita recommended as preferred bidder for Staffordshire County Council joint venture
Capita plc confirms that it has been recommended as preferred bidder to create
an educational support services joint venture (`JV') with Staffordshire County
Council, subject to the Council's Cabinet approval. The JV, in which Capita
will hold a majority stake, will initially deliver a range of educational
support services for schools and academies in the Staffordshire region. These
services are expected to generate revenues of approximately £85m per annum over
20 years. The JV will additionally focus on achieving significant growth
through securing new local authority, school, academy and further and higher
education clients across the UK.
Staffordshire County Council has a good reputation for delivering quality
education support services and is widely recognised as an industry leader in
supporting schools to deliver the best for their pupils. The JV will harness
both the Council's expertise and customer relationships and Capita's
infrastructure and commercial experience to create a national education support
services business. The new business will focus on enabling improvement in
educational outcomes in Staffordshire and for future clients across the UK.
Over the first 10 years, the JV is targeting total revenue of at least £2bn.
The UK schools education support services market is currently estimated to be
worth around £16bn per year. With changes in Government policy giving education
establishments greater freedom of choice over where and how they buy services,
there is a significant opportunity for the provision of quality, industry
leading support services on a national level.
Subject to approval by Cabinet at a meeting on 5 December, the Council will
commence detailed negotiations with Capita to formulate the JV that will
underlie this long term and evolutionary partnership. As part of the agreement,
Capita will acquire its stake in the joint venture with an initial investment
of £24.9m in the first year and a further £6.6m over the following 3 years.
Some 3,800 staff are expected to transfer to the newly formed organisation.
Further details will be issued following the Council's due process, as
appropriate.
-ends-
For further information:
Capita plc
Tel: 020 7799 1525
Paul Pindar, Chief Executive Officer
Shona Nichols, Corporate Communications Director
Media enquiries only:
Capita press office
Caroline Mooney
Tel: 020 7654 2152 or 020 7654 2399 (out of hours)
Email: caroline.mooney@capita.co.uk
Notes to editors
Capita plc is the UK's leading provider of business process management (BPM)
and integrated professional support service solutions. With 46,500 people at
more than 350 sites, including 68 business centres across the UK, Europe and
India, the Group uses its expertise, infrastructure and scale benefits to
transform its clients' services, driving down costs and adding value. Capita is
quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE
100 with 2011 turnover of £2.9 billion and profit before tax of £385 million.
Further information on Capita plc can be found at: www.capita.co.uk.
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