Capita preferred bidder for Fera joint venture

11 February 2015

                 Capita preferred bidder for Fera joint venture                 

Capita plc (Capita) has been selected, following a competitive procurement
process, to form a joint venture with the Department for Environment, Food
and Rural Affairs (Defra) to operate the Food and Environment Research Agency
(Fera). As part of the agreement, the joint venture has secured a long term
service agreement for up to 10 years, to deliver services for Defra, its
network and the Health and Safety Executive (HSE), and a 10 year supplier
framework through which scientific services can be bought directly by other
crown bodies.

In support of the Government's programme of commercialising certain public
assets, Capita will acquire a 75% stake in the joint venture for £20m in cash
and will use its infrastructure and expertise to enhance Fera's ability to
deliver scientific benefit to the public and return value to the taxpayer.
Forecast commercial growth against specific, targeted markets is expected to
enable the joint venture to achieve at least £700m revenue over its first 10
years. Growth will be generated through existing agreements with the public
sector, securing new public sector work and by further developing services to
achieve greater penetration of the commercial market. Fera already generates
annual turnover of around £40m.

Fera provides scientific services to government and commercial customers, such
as food retailers and manufacturers of crop protection products, in the UK and
overseas, employing nearly 400 scientists at a site near York. It specialises
in translating scientific knowledge into practical applications, such as
helping to ensure food safety and quality `from farm to fork', sustainable crop 
production, environmental management and conservation. It also plays a key role
in the UK's ability to respond to, and recover from, emergency situations
affecting the food chain and rural economy.

Capita will establish an institute with Newcastle University to ensure strong
linkage between Fera, academia and scientific research and development, driving
innovation and creating a centre of excellence for UK scientific partnership
and research. As a result of the joint venture and this partnership more than
50 new, highly specialist scientific roles will be created in York.

Capita chief executive, Andy Parker, said: "The excellent science being carried
out by staff at Fera has not yet been able to reach its full commercial
potential because of obvious limits on investment, recruitment and marketing.

"Capita's commercial know-how will complement the Fera team's scientific
expertise, helping it to grow the scientific capability it can offer existing
and new customers. Working together, we will create a more efficient and
improved organisation allowing scientists to focus on the science and its
delivery.

"Crucially, the additional capabilities of Capita and its partners, including
Newcastle University, will enable the joint venture to drive commercial and
government sector growth. This market is full of opportunity and we anticipate
cumulative revenue to the joint venture to progress to at least £700m by year
10.

"The science services market is one we've been excited about for some time and
we see this joint venture as laying the foundation for an additional growth
market for Capita."

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For further information:
Capita plc
Tel: [phone]
Andy Parker, Chief Executive Officer
Shona Nichols, Corporate Communications Director

Media enquiries only:
Capita press office
Caroline Mooney
Tel: [phone] or 020 7654 2399 (out of hours)
Email: [e-mail]

Note to editors

Capita plc is the UK's leading provider of BPO and integrated professional
support service solutions. With 64,000 people at over 400 sites, including 73
business centres across the UK, Europe, India and South Africa, 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 2013 revenue
of £3.9 billion. Further information on Capita plc can be found at: 
www.capita.co.uk