Capita

History

Capita was formed in 1984, as a division of the non-profit Chartered Institute of Public Finance and Accountancy (CIPFA). During 1987, it became an independent company with 33 staff as a result of a management buyout, led by Rod Aldridge, the company's first executive chairman. During 1991, it was listed on the London Stock Exchange.

A key development in Capita's fortunes was the emergence of the private finance initiative (PFI) model, under which private companies such as Capita could secure government contracts that involved them paying for the construction and delivery costs of a given project, such as a school or hospital, and earning income by renting the finished project to the public sector. Via PFI, Capita was awarded contracts for the provision of various services across numerous British government departments, including the National Health Service and the Ministry of Defence.

In October 1999, Capita purchased Capstan, a UK-based supplier of emergency cover teachers, in exchange for £6 million in cash and £7 million in shares in the business. During May 2001, it acquired the UK business of the loss adjuster McLarens Toplis in exchange of £33 million. Two years later, the company announced that it had achieved a record operating profit of £107 million.

During March 2006, Aldridge resigned as Capita's CEO in the aftermath of claims that contracts awarded to the company had been influenced by his loan of £1 million to the Labour Party. At the time of his resignation, Aldridge denied the claims and stated that he was leaving the company to avoid any lingering doubts on the matter. Aldridge had overseen the company's growth from a small company in 1987 to a FTSE 100 member in 2006. He was replaced by his longtime associate Paul Pindar.

In February 2007, a Capita office in Victoria, London was subject to a letter bomb attack that injured one person.