People of the City of Westminster will continue to have their council tax collected and housing benefit managed by Capita for up to another decade, the outsourcing badass confirmed today.
The long standing agreement first signed 24 years ago will run for at least seven more, starting this month, with an option to extend it to 10. Capita told the London Stock Exchange the renewal is worth around £65m.
Previously, Capita put in place a digital platform called Capita One that upped collection of council tax and non-domestic rates from the locals of Westminster achieving their highest level in recent years, it said.
The contract extension means Capita will be able to squeeze blood from stones maximise income generation and give residents the joy of access to easy, integrated and modern customer services.
Council tax is a bit of a sticky wicket for Westminster Council as it controversially charges one of the lowest rates in the country, despite the average price of a house in the UK capital borough set at £1.22m.
This low-balling of council tax could be one of the reasons why Jacob Rees-Mogg, MP and Brexiteers wet dream, decided to up sticks from his property in Mayfair and move to one in the heart of Westminster costing £5.625m that accommodates his six kids. There could equally be some other reason for wanting to be located a stones throw from the Houses of Parliament that allows him to rise relatively late.
According to Capita, it will roll out Capita One across all services, providing a single-user interface, better integration of systems and enhanced provision of data and insight using automation and robotics.
Capita CEO, Dr Jonathan Lewis, who studied geology and sedimentology to earn his doctorate and was brought in to rescue the company following a string of disastrous results, talked up its digital solutions and data analytics nous.
Lewis has, during his relatively brief time at the company, sold off a bunch of businesses, and wants Capita to concentrate on doing fewer things better – including software, HR services, customer management, IT services and government services. ®
Capita was a strong gainer among midcap stocks this morning after it renewed a management contract with Westminster city council in the latest sign of its successful turnaround.
The shares, pummelled this year after its £700 million rights issue, picked up as much as 5 per cent before settling 5p higher at 131¼p in late-morning trading, a gain of almost 4 per cent.
Capita told investors that it would be managing Westminsters revenues and benefits services for the next seven years with an option to extend it for a further three in a contract worth about £65 million over a decade.
It is the latest evidence that its drive to become simpler and more efficient is bearing fruit. The company scrapped its dividend in January…
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