Capita, the UK outsourcing group listed on the FTSE 100, has announced that the Cabinet Office has extended its contract to exclusively manage the provision of training across the Civil Service for a further two years from February 2014 to the end of March 2016.

Capita expects the deal to generate revenues of at least £30m per annum over the two year extension.

During the initial 11 months of the contract the group directly delivered 41% of training with the remaining 59% procured on the open market compared to the 49/51 contractual obligation.

Chief Executive of Capita, Paul Pindar, said: In the current contract's first 11 months it generated significant savings for Civil Service departments. More than half of all courses were procured on the open market, nearly three quarters from small and medium (SME) training providers.

"The extended contract will enable a wider range of public sector organisations to access quality learning and development services, which provide value for money and support the delivery of excellent public service, from June onwards.

"Combining innovative, blended learning solutions, including face to face, online and specialist courses, managed by Capita, the public sector can look forward to a substantially more efficient process for procuring learning services."

NR

Related share prices
Capita (CPI) share price