Capita signs two new contracts worth £565m

(Sharecast News) - Outsourcing group Capita said it has signed two new contracts with the UK and Northern Ireland governments worth a combined £565m. Four months after Capita was selected as the preferred bidder, the group has now confirmed it has sealed the deal to deliver Functional Assessment Service (FAS) assessments in the Midlands and Wales for the Department for Work and Pensions (DWP), and in Northern Ireland for the Department for Communities (DfC).

The contracts will run for five years from 2024, with an additional option to extend for a further two years.

"FAS is a new service that will bring together existing assessment services, for disabled people and people with health conditions, under a single provider in each geographical region. This will make accessing support simpler and easier for some of society's most vulnerable people," Capita said.

The stock was up 1.4% at 17.13p by 0815 BST.