Company registration number 02260524 (England and Wales)
CAPITA PENSION SOLUTIONS LIMITED
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CAPITA PENSION SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
C C Clements
S R Heatley
R Altmann
A Darfoor
Secretary
Capita Group Secretary Limited
Company number
02260524
Registered office
First Floor
2 Kingdom Street
Paddington
London
England
W2 6BD
Auditor
KPMG LLP
15 Canada Square
London
E14 5GL
Banker
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
CAPITA PENSION SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 10
Directors' report
11 - 15
Independent auditor's report to the members of Capita Pension Solutions Limited
16 - 19
Income statement
20
Balance sheet
21 - 22
Statement of changes in equity
23
Notes to the financial statements
24 - 51
CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The Directors present their Strategic report and financial statements for the year ended 31 December 2024.

 

Capita Pension Solutions Limited ('the Company') is a wholly owned subsidiary (directly held) of Capita plc. Capita plc, along with all its subsidiaries' is hereafter referred to as 'the Group'. The Company operates within the Pension Solutions operating segment of the Group.

Principal activities

The principal activity of the Company continued to be pension scheme and bulk purchase annuity (BPA) administration, pension consultancy including actuarial and investment advice, and data remediation services. The Company is regulated by the Financial Conduct Authority. There have not been any significant changes in the Company's principal activities in the period under review. The Directors are not aware, at the date of this report, of any further likely major changes in the Company's activities in the next year.

Review of the business

As shown in the Company's income statement on page 20, revenue has increased from £173.7m in 2023 to £183.0m in 2024 and operating profit has increased from £17.5m in 2023 to £26.2m in 2024. The growth in revenue and profit is mainly due to continued organic growth across both pension administration and data consulting.

 

The balance sheet on pages 21 to 22 of the financial statements shows the financial position at the year end. Net assets have increased from £169.7m in 2023 to £192.5m in 2024 primarily due to the profit after tax in the year of £22.8m. At the year end the Company provided an intercompany loan to another group company of £60m which reduced cash and increased intercompany receivables at 31 December 2024.

 

Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 10 and 12 to the financial statements.

 

Key financial performance indicators used by the Group on a consolidated basis are adjusted revenue, adjusted operating profit and margin, adjusted basic/diluted earnings per share, free cash flow excluding business exits, and gearing ratios. The Group manages its operations on an operating segment basis and as a consequence, some of these indicators are monitored separately at an operating segment level. The performance of the Pension Solutions operating segment of the Group is discussed in the Group’s Annual Report which does not form part of this report. The annual report and consolidated financial statements of Capita plc are available from its registered office at First Floor, 2 Kingdom Street, Paddington, London, England, W2 6BD, and on its website www.capita.com/investors

 

Systems and procedures are in place to identify, assess and mitigate major business risks that could impact the Company. Monitoring exposure to risk and uncertainty is an integral part of the Company's structured management processes. The principal risks that the Company faces are operational risk, contract pricing, competition, regulatory and legislative impacts, recruitment and retention of staff and maintenance of reputation and strong supplier and customer relationships. Group risks are discussed in the Group's annual report which does not form part of this report.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Capital Adequacy

Capita Pension Solutions Limited (the firm) is authorised and regulated by the Financial Conduct Authority and is directly owned by Capita plc. Capita Pension Solutions Limited is subject to the regulatory capital and liquidity requirements for investment firms in the FCA’s Prudential sourcebook for MiFID Investment Firms (MiFIDPRU) and is classified as a non-SNI MiFIDPRU firm. As part of the MiFIDPRU requirements the firm is required to complete an Internal Capital Adequacy Risk Assessment (ICARA).

 

Governance Arrangements

Capita Pension Solutions Limited’s governance is led by a Board (the Board) consisting of a Chairman who is an independent non-executive director and other executive and non-executive board members. The governance also includes a number of Board committees/subcomittees, including:

 

For the year ended 31 December 2024, Capita Pension Solutions Limited operated a Capital and Risk Committee, a Remuneration Committee and an Audit Committee to enable it to manage its obligations and risks. All three committees were chaired by a non-executive Director and all members were non-Executive. The firm is not required to have these committees under the requirements in MiFIDPRU but has determined that they are a useful addition to the firm’s governance arrangements.

 

Capita plc promotes Diversity and Inclusion across its businesses by way of mandatory training and via its Diversity and Inclusion Policy. Accordingly, Capita Pension Solutions Limited applies that policy to its business including its Board.

 

Capita Pension Solutions Limited Board is ultimately responsible for the risk management regime, as well as ensuring that the governance and culture of the firm starts at the Board. This includes the segregation of duties in the organisation and the prevention of conflicts of interest. It is satisfied that the risk systems are adequate for Capita Pension Solutions Limited’s profile and strategy.

 

Systems and procedures are in place to identify, assess and mitigate major business risks that could impact Capita Pension Solutions Limited. Monitoring exposure to risk and uncertainty is an integral part of the Company’s structured management processes and is focused through the Risk and Compliance Committee, which itself is a subcommittee of the Board. The Risk and Compliance Committee meets at least ten times per year and receives formal reports from a range of functions within the business.

 

Capita Pension Solutions Limited is not risk averse but seeks to actively manage material risk to the business. Operational risk is the main category of risk faced by the Company. Whilst accepting that data security and fraud risks are inherent within business operations, Capita Pension Solutions Limited has a zero tolerance for fraudulent or corrupt behaviour, with controls designed accordingly.

 

Whilst risk appetite is strategic and linked to business objectives, risk tolerance is operational and expressed in such a way that it can be linked to the same risk measures implemented by operational teams throughout Capita Pension Solutions Limited’s business. The Capita Pension Solutions Limited Risk & Compliance team, who are independent of the business, provide ongoing challenge for the risk management process, as well as ensuring consistency with other parts of Capita.

 

The Company follows Capita plc policies in relation to the recruitment of members of the management body, including in respect of diversity. The number of directorships held by members of the management body in the year 2024, together with their knowledge, skills and experience was as follows:

 

Director name

Number of directorships held

Christopher Clements

9

Stuart Heatley

4

Rosalind Altmann

2

Andrew Darfoor

7

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Capital Adequacy (continued)

The number of directors that exercised share options during the year is disclosed in Note 19.

 

The Directors all have numerous years of experience in order to manage the business effectively; not solely, but skills and experience include leadership, market, industry, strategic planning, risk management, governance, information technology, resource management and financial.

 

ICARA process and Own Funds requirement

The nature of activities pursued by the parent company (Capita plc) and the non-FS nature of these activities mean Capita plc is not subject to FCA capital adequacy requirements. Capita Pension Solutions Limited should however report on any financial control or capital and liquidity arrangements it has with Capita plc, and take into consideration the impact of these financial arrangements with respect to going concern.

 

Capita Pension Solutions Limited has completed an ICARA process,which is fully refreshed annually, and updated thereafter as risks change. All changes and the full annual refresh are signed off by the Board. Consequently, the firm has a detailed ICARA document setting out its structure, strategy, governance arrangements, capital position, quantified ‘Material Harms’, stress testing, reverse stress testing and a ‘last resort’ wind-down analysis. The ICARA also sets out the Own Funds Requirement, k-factor calculations and Fixed Overhead Requirement. Given the dynamic basis of linking strategy, risk appetite and capital, the ICARA is a living document and is subject to revisions. Any macroeconomic or external impact, any internal / control impact, any systemic / industry-focused impact feeds into material harms and stress test scenarios that model the financial aspects and influences the institutional responses Capita Pension Solutions Limited has to undertake.

The nature of activities, and the changing regulatory environment for financial services firms, that Capita Pension Solutions Limited is exposed to means these scenarios have to be ratified, stress-tested and changes reported back to the FCA on a periodic basis. The ICARA is also regularly reviewed for fit-for-purpose and any proposed amendments are brought to the Capita Pension Solutions Limited Capital and Risk Committee and approved before they are released to the FCA.

 

This process ensures that Capita Pension Solutions Limited always holds an appropriate level of capital and liquid resources to cover potential harms, ensuring it remains financially viable, can provide services through the economic cycle and if required would be able to complete an orderly wind-down without causing undue economic harm to consumers or to the integrity of the UK financial system.

 

Capita Pension Solutions Limited has developed a liquidity management framework to formalise the monitoring and control processes in place to ensure it has sufficient liquid resources to meet its liabilities as they come due. This risk is therefore considered to be minimal.

 

The liquid resources include bank deposits held with Barclays Bank plc as part of a cash pooling arrangement with other subsidiaries of Capita plc. As at 31 December 2024, Capita Pension Solutions Limited held £19m (2023: £19.1m) within ringfenced Capita Pension Solutions Limited bank accounts held with NatWest Bank (£10.7m) and Lloyds Bank (£8.3m). On 16 January 2025 total cash held within ringfenced Capita Pension Solutions Limited bank accounts was increased by £6m, giving a total of £25m. The credit and liquidity risk associated with these deposits are reviewed on an ongoing basis and are considered by management to be low.

 

The firm’s regulatory disclosures under the MiFIDPRU rules have been reviewed and noted by the Board of Capita Pension Solutions Limited and published annually.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Capital Adequacy (continued)

 

Own funds

Equity as per Balance sheet as at 31 December 2024 is set out in the table below in £m:

 

Called up share capital

30.1

Share premium

86.2

Retained earnings and other reserves

76.1

Deductible deferred tax assets

(0.9)

Deductible goodwill & intangibles

(93.8)

Deductible defined benefit asset

(0.1)

 

-----------

Own funds

97.6

 

======

 

TIER I CAPITAL

Tier l Capital is comprised of share capital, share premium, retained earnings, less other regulatory deductions, which for the Company comprises of intangible assets and Deductible DTA. As at 31 December 2024 the Tier 1 capital is £97.6m.

 

TIER 2 CAPITAL

As at 31 December 2024 the Tier 2 capital is £nil.

 

OWN FUNDS REQUIREMENTS

The Company's regulatory requirements resulting from the FCA’s MiFIDPRU rules are that it must have a permanent minimum capital requirement of £150,000. The own funds requirement is the highest of the following:

 

• the permanent minimum capital requirement

• the fixed overheads requirement (FOR); or

• the K-Factor requirement plus business risk which is the total quantified impact of identified “material harms”

 

The FOR has been assessed as £37.2m for 2024 (2023: £35.7m).

 

The K-factor requirement is £2.6m, made up of:

i) The K-CMH has been assessed as £2.3m

ii) The K-COH has been assessed as £0.1m

iii) The K-AUM has been assessed as £0.2m

 

The business risk is identified as part of the risk management processes whereby the impact of material harms are quantified. Management have assessed that the business risk from material harms equates to £32.4m.

 

Capita Pension Solutions Limited have therefore identified the own funds requirement to be £37.2m being the higher of fixed overhead requirement of £37.2m and the total K- factor requirement of £2.6m plus the business risk of £32.4m.

 

Operational risk : Operational risk encapsulates a range of subsidiary risks including processing, outsourcing, IT systems, HR and fraud. For the purposes of the ICARA, financial reporting, regulatory and legal risks are also included under the operational risk heading. These risks are identified, assessed, monitored and reported by business managers through the Company’s risk management process.

 

Credit and residual risk : Credit risk is not considered to be significant for the Company. Credit exposure is limited to routine working capital related balances primarily with its key commercial partners. The Company does not employ credit risk mitigation techniques. Residual risk does not therefore apply. Market and securitisation risk Capita Pension Solutions Limited is not authorised to trade as principal and has no trading book. The Company has no foreign exchange risk. Securitisation risk is not applicable to the Company.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Capital Adequacy (continued)

 

Liquidity risk : The Company has developed a liquidity management framework to formalise the monitoring and control processes in place to ensure Capita Pension Solutions Limited has sufficient liquid resources to meet its liabilities as they come due. This risk is therefore considered to be minimal.

 

Insurance risk : Insurance risk refers to fluctuations in the timing, frequency and severity of insured events, relative to the expectations of the firm at the time of underwriting. Insurance risk can also refer to fluctuations in the timing and amount of claim settlements. Given the nature of the business, there is no insurance risk.

 

Interest rate risk : Capita Pension Solutions Limited has no material exposure to interest rate risk.

 

Business risk : Business risk, or procyclicality (the risk of deterioration in business or economic conditions requiring a firm to raise capital), is not believed to be significant in Capita Pension Solutions Limited due to the type of activities it is engaged in. The stress tests conducted on key economic indicators demonstrate a limited sensitivity to economic factors. A large part of Capita Pension Solutions Limited expenses are of a variable nature and therefore, if there is a negative impact on the expected business volumes, the cost base would be capable of adjustment.

 

Pension Obligation Risk : Capita Pension Solutions Limited participates in a number of defined contribution schemes and is also a participating employer in defined benefit pension schemes operated by the Capita group. In the unlikely event of the other participating employers being insolvent, Capita Pension Solutions Limited could be liable to settle the deficit on the fund. The Directors consider this risk to be remote. Note 17 of the financial statements provides additional information.

 

Concentration risk : Capita Pension Solutions Limited is not reliant on any single external commercial relationship and therefore we do not believe the exposure to be material.

 

Group risk : It is not considered that there are any significant risks to the Company of being part of Capita plc, however the Company has assessed that the most significant risk relates to the reliance on group for providing certain services including access to the cashpool and IT services. Management have detailed plans in place to replicate or take over these services if necessary thus minimising the risk and have ringfenced cash available thus protecting liquidity.

 

Leverage risk : The Company currently has no external borrowing.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Section 172 Statement

Capita plc’s section 172 statement applies to its Divisions and the Company to the extent it relates to the Company’s activities. Common policies and practices are applied across the Group through divisional management teams and a common governance framework. The following disclosure describes how the Directors have regard to the matters set out in section 172(1)(a) to (f) and forms the Directors’ statement as required under section 414CZA of the Companies Act 2006.

 

Further details of the Group’s approach to each stakeholder are provided in Capita plc’s section 172 statement on pages 48 to 52 of Capita plc’s 2024 Annual Report.

 

Our People

 

Why they are important

They deliver our business strategy; they support the organisation to build a values-based culture; and they deliver our products and services ensuring client satisfaction.

 

What matters to them

Flexible working; learning and development opportunities leading to career progression; fair pay and benefits as a reward for performance; and two-way communication and feedback.

 

How we engaged

who has visited businesses in the UK and South Africa

 

Topics of engagement

 

Outcomes and actions

The 2024 employee survey showed a decrease in the eNPS compared with 2023. Although disappointing, we recognise that this reflected the difficult decisions that the Company had to make during the year to ensure the long-terms sustainability and success of the Company, including the decision not to remain as a real living wage employer. Survey feedback was positive in relation to manager support and belonging with 80% of respondents stating that their manager helps them to succeed while 60% of respondents feel a sense of belonging at Capita.

We are developing and delivering a range of action plans, including ensuring our leaders feel confidence in, and ownership of Capita’s strategy, plans and successes, developing inclusive opportunities for internal career mobility.

We have mobilised a multi-year programme to rally, reset and embed our culture engaging over 250 Culture Accelerators globally to drive the change. Focused on bringing together our senior leadership team through the launch of our Leadership Playbook, mandating Management & Leadership development, refreshing our values to launch in Q2 2025 and creation of an employee playbook.

In October 2024, Capita was recognised by Forbes, as being one of the top companies for women for the second consecutive year, ranking at number 36 out of 400 global companies on the prestigious list.

Our 2024 gender pay gap figures showed improvement compared to 2023, resulting in a median of 14.91% (0.49% down from 15.40%) and a mean of 18.40% (0.39% down from 18.79%). Since we started reporting in 2017, we have reduced our gender pay gap by 10.39%, from 25.30% to 14.91%.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Section 172 Statement (continued)

Moving Ahead, Capita’s mentoring programme, offers cross-company mentoring which aims to build a pipeline for talented individuals from under-represented backgrounds within the workplace. Capita was awarded ‘Most Dynamic Mentoring Organisation’ in 2023 and 2024 at the Inspired by Mentoring Awards in recognition of our commitment to mentoring.

 

We continued to promote our Speak Up policy throughout the organisation.

 

Risks to stakeholder relationship

performance

 

Key metrics

Voluntary attrition, employee NPS, employee engagement Index and people survey completion level.

 

Clients and customers

 

Why they are important

They are recipients of Capita’s services; and Capita’s reputation depends on consistent and timely delivery of the services they need from us.

 

What matters to them

High-quality service delivery; delivery of transformation projects within agreed timeframes; and responsible and sustainable business credentials.

 

How we engaged

Office

of contact for key clients and customers

Divisional CEO.

 

Topics of engagement

contact

AWS, Salesforce, Microsoft and Service Now

 

Outcomes and actions

Feedback provided to business units to address any issues raised; client value proposition teams supporting divisions with co-creation ideas; direct customer and sector feedback; and senior client partner programme undertaking client-focused growth sprints to build understanding of client issues and ideas to help address them.

 

Risks to stakeholder relationship

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Section 172 Statement (continued)

Key metrics

Customer NPS; specific feedback on client engagements.

 

Suppliers and Partners

 

Why they are important

At Capita, our suppliers and partners including leading hyperscalers, play a pivotal role in delivering our purpose. By collaborating with organisations that share our values, we maintain high standards, ensure operational excellence, and achieve outcomes aligned with our social, economic, and environmental commitments. Our partnerships, particularly with hyperscalers including AWS, Microsoft, and ServiceNow, enhance our ability to innovate and deliver cutting-edge digital solutions.We will continually review our supply base to ensure it delivers better outcomes for customers while addressing the need to reduce supply chain complexity and improve service quality.

What matters to them

backed approach to net zero

highest standards of ethical conduct in all endeavours

local communities

 

How we engaged

ServiceNow focused on co-creating solutions for Capita’s clients, integrating advanced AI and

cloud capabilities into our offering

and explore new technologies that enhance the customer experience

alignment with Capita’s strategic goals

impact of cloud-based operations, contributing to the reduction of Capita’s Scope 3 carbon footprint

source to procure process complete with in-life feedback questionnaires and risk assessments

 

Topics of engagement

 

Outcomes and actions

Our supplier charter, which is available on our website, remains at the core of strengthening our commitments and sets out how we conduct business in an open, honest and transparent manner, and what we expect of our suppliers. We want to work with suppliers and supply chain partners that share our values and help us deliver our purpose, to create better outcomes. This includes the provision of safe working conditions, treating workers with dignity and respect, acting ethically and being environmentally responsible.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Section 172 Statement (continued)

As part of our commitments as a responsible business, Capita manages and monitors a variety of supply chain related metrics including sustainability, spend with SMEs, VCSE’s and diverse-owned businesses and modern slavery risk.

 

To understand Capita’s Scope 3 carbon footprint, a supplier engagement programme was also undertaken with suppliers accounting for £1bn annual spend (over 50% of the supply chain by spend) to ask them to disclose their carbon emissions to CDP.

 

Risks to stakeholder relationship

 

Key metrics

90% of supplier payments within agreed terms; SME spend allocation; and supplier diversity profile.

 

Society

 

Why they are important

Capita is a provider of key services to government impacting a large proportion of the population.

 

What matters to them

Social mobility; youth skills and jobs; digital inclusion; diversity and inclusion; climate change; business ethics; accreditations and benchmarking; and cost of living crisis.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Youth and employability programme such as Social Shifters; ranked 36 on the Forbes Global list of top employers for women; our pay gap has improved by 10.39% since we began reporting, awarded Employer’s Network for Equality and Inclusion, achieved a silver Tidemark, Armed Forces Covenant Gold Employer Recognition Award and an A CDP (Carbon Disclosure Project) score as a bronze medal by EcoVadis for Capita plc.

CAPITA PENSION SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -

Section 172 Statement(Continued)

 

Risks to stakeholder relationship

 

Key metrics

Community investment, workforce diversity and ethnicity data, including pay gaps, external indices performance such as EcoVadis.

C C Clements
Director
16 April 2025
CAPITA PENSION SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -

The Directors present their Directors' report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 20.

No interim or final dividend was paid or proposed during the year (2023: £nil).

Directors

The Directors, who held office during the year and up to the date of signature of the financial statements were as follows:

C C Clements
S R Heatley
R Altmann
A Darfoor
Political donations

The Company made no political donations and incurred no political expenditure during the year (2023: £nil).

 

Employees

Details of the number of employees and related costs can be found in note 18 to the financial statements.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the Company continues and that the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Company participates in the Group's policies and practices to keep employees informed on matters relevant to them through regular meetings, newsletters, email notices and intranet communications. These communication initiatives enable employees to share information within and between business units and employees are encouraged, through an open-door policy, to discuss with management matters of interest to the employee and subjects affecting day-to-day operations of the Company. The Group's share incentive plan is designed to promote employee share ownership and to give employees the opportunity to participate in the future success of the Group.

Auditor

KPMG LLP, having indicated its willingness to continue in office, will be deemed to be reappointed as auditor under section 487(2) of the Companies Act 2006.

CAPITA PENSION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Corporate governance

The Company forms part of the Capita plc Group. Capita plc shares have a premium listing on the main market of the London stock exchange and Capita plc is subject to the requirements of the UK Corporate Governance Code 2018 (the “Code”) published by the Financial Reporting Council.

 

The Company did not apply a corporate governance code during the year as its governance arrangements form part of the wider Group’s governance arrangements and are integrated into the management of the Group as a whole. Further details of the Group’s compliance to the Code are provided on pages 84-89 of Capita plc’s 2024 Annual Report.

 

Group’s Executive Committee ('ExT'), led by the Chief Executive Officer of Capita plc, oversees its governance arrangements. Information about ExT members is available on the Capita plc's website www.capita.com/about-capita/executiveteam. Decisions made by the Capita plc board and its committees, or by the ExT and its committees, are cascaded through the Group where applicable and the management of each division, led by its Executive Officer, is responsible for their implementation among unregulated businesses in their division. Boards of directors of regulated entities within the Group have authority to make decisions autonomously, with risk committee oversight at a Group level. Quarterly performance reviews are conducted by the ExT with divisional management. These enable a two-way conversation to take place about business strategy, developments and performance. The Directors of the Company remain responsible for all decisions affecting the Company’s operation.

CAPITA PENSION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Remuneration policies and practices

CPSL adheres to the Capita Group Remuneration Policy and applies the Capita Group ‘Fair Pay Principles’ which underpin the approach to pay at all levels and within all parts of the Group.

 

In addition, the CPSL Remuneration Policy sets out how CPSL is committed to:

 

The Fair Pay Principles set out requirements to ensure pay is:

 

The full disclosure will be published on the CPSL website.

 

CPSL has its own Remuneration Committee. The membership of this consists of the two non-executive directors with the CPSL Managing Director, CPSL Head of Risk and Compliance, Capita Director of Risk & Compliance and HR Business Partner as attendees. The purpose of the Committee is to ensure CPSL adheres to the applicable regulatory and Group remuneration requirements and to ensure that all its staff are remunerated in a transparent and fair manner and in a way that does not encourage excessive risk taking. The Company does not employ external remuneration advisers and external consultants are not used to determine the remuneration policy.

 

Material Risk Takers

CPSL has assessed which members of its staff are material risk takers (MRTs) as defined within the FCA’s SYSC 19G 5.3R rule. The total number of MRTs as at 31 December 2024 was 18. The types of staff identified as material risk takers are:

 

All relevant staff are paid by basic salary, which is not dependent on company performance. There is also a Management Bonus Scheme which is linked to Group, Divisional and business unit performance as well as individual performance; the bonus scheme is discretionary. Pay and bonuses are linked to numerous factors including non-financial measures such as adherence to the Group’s values.

CAPITA PENSION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -

Accordingly, remuneration is made up of a fixed component (basic salary) and a variable component (annual bonus). As stated above the annual bonus is based on a number of factors. 80% of the maximum annual bonus opportunity is based on full year group financial performance objectives. 20% of maximum annual bonus opportunity is based on assessment of full year non-financial objectives and take into consideration the Group Values displayed to achieve the objectives. Any annual bonus is paid annually in cash only. It is not a policy of Capita Group to offer guaranteed variable remuneration. In the case of severance pay applying on exit, Capita Group applies Statutory Redundancy Pay rules and requirements in accordance with its Redundancy Policy.

 

The financial performance element is based on full year group financial performance objectives. This comprises Revenue, Profit Before Tax and Free Cash Flow which are equally weighted.

 

The non-financial element is based of a number of metrics. 3 metrics are set at Group or Divisional level and relate to:

 

In addition, 2 personal metrics are included relating to supporting the Group’s socially responsible, environmental and sustainability aims and a role-specific objective. Separate from the Management Bonus Scheme there is a Sales Commission Scheme for the Client and Sales teams, and a Pension Consulting Incentive Scheme and the factors within this scheme are similarly split 80/20 as in the Management Bonus Scheme, with 80% based on the CPSL financial performance and 20% linked to personal values-based objectives. Again, all payments are made in cash. There is also a discretionary share option scheme in operation where vesting cannot occur until after 3 years.

Code Staff Remuneration

Senior management and members of staff whose actions have a material impact on the risk profile of Capita Pension Solutions Limited are classified as Code Staff. No staff have aggregate remuneration over £675,000 p.a.

 

The total fixed and variable remuneration, together with the number of beneficiaries, for the year ended 31 December 2024 was as follows:

 

 

Executive and

board

Senior

management

Other code

staff

Total code

staff

Number of staff

5

10

2

17

 

£m

£m

£m

£m

Fixed remuneration - cash

1.4

1.8

0.2

3.4

Fixed remuneration - shares

-

-

-

-

Variable remuneration - cash

0.1

0.2

-

0.3

Variable remuneration - shares

-

-

-

-

 

-----------

-----------

-----------

-----------

Total remuneration

1.5

2

0.2

3.7

 

======

======

======

======

 

Most members of the code staff provide services to other group companies. The remuneration disclosed includes their total remuneration and not that which is solely attributable to their services for Capita Pension Solutions Limited.

 

There were 18 code staffs during the year. Remuneration has been paid to 17 of them. The remaining individual, a contractual employee, has a distinct compensation structure.

CAPITA PENSION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Statement of Directors' responsibilities

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the Company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to auditor

So far as each person who was a Director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the Company's auditor is unaware. Having made enquiries of fellow directors and the Company's auditor, each director has taken all the steps he/she might reasonably be expected to take as a director to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

 

Qualifying third party indemnity provisions

The Company has granted an indemnity to the Directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

On behalf of the board
C C Clements
Director
16 April 2025
CAPITA PENSION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITA PENSION SOLUTIONS LIMITED
- 16 -
Opinion

We have audited the financial statements of Capita Pension Solutions Limited ('the Company') for the year ended 31st December 2024 which comprise the Income Statement, Balance Sheet, Statement of changes in equity and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

We used our knowledge of the Company, its industry, and the general economic environment to identify the inherent risks to its business model and analyzed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period. The risks that we considered most likely to adversely affect the Company’s available financial resources over this period were:

 

Given the level of financial resources, and the risks inherent in the cash flows, our evaluation of the directors’ going concern assessment was of particular significance in our audit:

 

We considered whether these risks could plausibly affect liquidity in the going concern period by assessing the directors’ sensitivities over the level of available financial resources indicated by the Company’s financial forecasts taking account of severe, but plausible adverse effects that could arise from these risks individually and collectively. Our procedures also included:

 

CAPITA PENSION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITA PENSION SOLUTIONS LIMITED
- 17 -

We evaluated the achievability of the actions the directors consider they would take to improve the position should the risks materialise, which included consideration of the nature and quantum of historical cost savings delivered and the feasibility of implementing these over the going concern period, taking into account the extent to which the directors can control the timing and outcome of these. We considered whether the going concern disclosure in note 1.1 to the financial statements gives a full and accurate description of the directors' assessment of going concern, including the identified risks, dependencies and related sensitivities.

 

Our conclusions based on this work:

 

 

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

 

Our risk assessment procedures included:

 

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

 

As required by auditing standards and taking into account possible pressures to meet profit and revenue targets, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular:

revenue streams.

 

We performed procedures including:

CAPITA PENSION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITA PENSION SOLUTIONS LIMITED
- 18 -

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards), and from inspection of the Company’s regulatory and legal correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.

 

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

 

As the Company is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies’ legislation), distributable profits legislation, pension legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of Company’s license to operate. We identified the following areas as those most likely to have such an effect: Health and Safety, Data Protection laws, Fraud, Corruption and Anti-bribery, Employment and Social Security law, Regulatory Capital and Liquidity, Money Laundering, Foreign Corrupt Practices Act, Environmental Protection laws, Contract Legislation, Competition Legislation & Price Fixing laws, and Market Abuse Regulation and certain aspects of company legislation recognising the financial and regulated nature of the Company’s activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

 

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

 

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Strategic report and directors' report

The directors are responsible for the strategic report and the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.

Our responsibility is to read the strategic report and the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

CAPITA PENSION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITA PENSION SOLUTIONS LIMITED
- 19 -
Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report to you if, in our opinion:

 

We have nothing to report in these respects.

Directors' responsibilities

As explained more fully in their statement set out on page 15, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Thomas (Senior Statutory Auditor)
For and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
16 April 2025
CAPITA PENSION SOLUTIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2024
2023
Notes
£m
£m
Revenue
3
183.0
173.7
Cost of sales
(125.5)
(114.6)
Gross profit
57.5
59.1
Administrative expenses
(31.3)
(41.6)
Operating profit
4
26.2
17.5
Net finance income
5
4.4
2.3
Profit before tax
30.6
19.8
Income tax charge
6
(7.8)
(4.7)
Profit and total comprehensive income for the year
22.8
15.1

The income statement has been prepared on the basis that all operations are continuing operations.

The notes and information on pages 24 to 51 form an integral part of these financial statements.

CAPITA PENSION SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 21 -
2024
2023
Notes
£m
£m
Non-current assets
Property, plant and equipment
7
0.3
0.9
Intangible assets
8
93.8
88.9
Right-of-use assets
7
1.2
1.6
Contract fulfilment assets
9
23.8
14.6
Trade and other receivables
10
1.2
1.1
Deferred tax assets
6
2.3
2.6
Employee benefits
17
0.1
0.1
122.7
109.8
Current assets
Trade and other receivables
10
86.7
80.7
Cash and cash equivalents
11
50.0
30.2
136.7
110.9
Total assets
259.4
220.7
Current liabilities
Trade and other payables
12
16.6
13.7
Deferred income
15
28.5
18.2
Lease liabilities
13
0.5
1.3
Provisions
14
3.6
8.3
Income tax payable
15.1
7.9
64.3
49.4
Non-current liabilities
Lease liabilities
13
0.8
1.3
Provisions
14
1.8
0.3
2.6
1.6
Total liabilities
66.9
51.0
Net assets
192.5
169.7
CAPITA PENSION SOLUTIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
2024
2023
Notes
£m
£m
- 22 -
Capital and reserves
Issued share capital
16
30.1
30.1
Share premium
86.2
86.2
Capital redemption reserve
0.1
0.1
Retained earnings
76.1
53.3
Total equity
192.5
169.7

The notes and information on pages 24 to 51 form an integral part of these financial statements.

These financial statements were approved by the board of directors and authorised for issue on
16 April 2025
16 April 2025
and are signed on its behalf by:
C C Clements
Director
Company registration number 02260524 (England and Wales)
CAPITA PENSION SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
Share capital
Share premium
Capital redemption reserve
Retained earnings
Total equity
£m
£m
£m
£m
£m
At 1 January 2023
30.1
86.2
0.1
38.2
154.6
Profit for the year
-
-
-
15.1
15.1
At 31 December 2023
30.1
86.2
0.1
53.3
169.7
Profit for the year
-
-
-
22.8
22.8
At 31 December 2024
30.1
86.2
0.1
76.1
192.5
Share capital

The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising 30,115,627 ordinary shares of £1 each.

Share premium

The amount paid to the Company by shareholders, in cash or other consideration, over and above the nominal value of the shares issued to them less issuance costs.

Capital redemption reserve

The Company can redeem shares by repaying the market value to the shareholder, whereupon the shares are cancelled. Redemption must be from distributable profits. The capital redemption reserve represents the nominal value of the shares redeemed.

Retained earnings

Net profits accumulated in the Company after dividends are paid.

The notes and information on pages 24 to 51 form an integral part of these financial statements.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
1
Accounting policies
1.1
Basis of preparation

Capita Pension Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 2 Kingdom Street, Paddington, London, England, W2 6BD. The Company's principal activities and nature of its operations are disclosed in the Directors' report.

The financial statements are prepared under the historical cost basis except where stated otherwise and in accordance with applicable accounting standards.

Going concern

In determining the appropriate basis of preparation for the financial statements for the year ended 31 December 2024, the Company’s Directors (‘the Directors’) are required to consider whether the Company can continue in operational existence for the foreseeable future. The Directors have concluded that it is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations as set out below.

 

Accounting standards require that ‘the foreseeable future’ for going concern assessment covers a period of at least twelve months from the date of approval of these financial statements, although those standards do not specify how far beyond twelve months the Directors should consider. In its going concern assessment, the Directors have considered the period from the date of approval of these financial statements to 30 April 2026 (‘the going concern period’) and which aligns to the period considered by the Directors of the ultimate parent company, Capita plc.

 

Board assessment

Base case assessment

The financial forecasts used for the going concern assessment are derived from financial projections for 2025-2026 for the Company which have been subject to review and challenge by management and the Directors. The Directors have approved the projections. The base case financial forecasts demonstrate liquidity headroom throughout the going concern period to 30 April 2026.

 

The Directors have also considered the notional cash pooling arrangement with other subsidiaries of Capita plc (as disclosed in note 11) and the cross-guarantee the Company forms a part of in respect of the overdrafts of its fellow subsidiaries under the notional cash pool arrangements (as disclosed in note 20) when making the going concern assessment. The Directors have concluded that there is no plausible downside scenario in which these guarantees would be called.

 

Severe but plausible downside scenario

In considering severe but plausible downside scenarios, the Directors have taken account of the potential adverse financial impacts resulting from the following risks:

 

In the severe but plausible downside scenario considered by the Directors as described above, the forecasts show that there would be sufficient cash available to the Company throughout the period of assessment to 30 April 2026.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 25 -

Basis of preparation (continued)

 

Conclusion

As a result, the Directors believe that the Company is well placed to manage its business risks successfully. After making enquiries, the Directors have a reasonable expectation that the Company will continue in operation and meet its liabilities as they fall due over the period to 30 April 2026. Consequently, the annual report and financial statements have been prepared on the going concern basis.

 

The Company is authorised by the Financial Conduct Authority (FCA), resulting in a requirement to meet regulatory capital requirements for financial services firms (also known as ICARA).

 

The Company has a well-defined ICARA articulating minimum Own funds requirements and Company's assessment of all material risks and adequacy of total capital (CET 1, AT1 and Tier 2), together known as Own Funds Requirements. Given the dynamic basis of linking strategy, risk appetite and capital, the ICARA is a living document and is subject to revisions. Any macroeconomic or external impact, any internal / control impact, any systemic / industry-focused impact feeds into scenarios that model the financial aspects and influences the institutional responses, the Company has to undertake. The nature of activities, and the changing regulatory environment for financial services firms, that the Company is exposed to means these scenarios have to be ratified, stress-tested and changes reported back to the FCA on a periodic basis. The ICARA is also periodically reviewed for fit-for-purpose and any proposed amendments are brought to the Company's Capital and Risk Committee and approved before they are released to the FCA.

 

Under the FCA ICARA regulation, the Directors are required to model and put in place early warning indicators for reverse stress test scenarios which would lead to the possible need for an orderly wind down. To this end, the Directors have agreed with the Capita plc Board that the Directors of the Company will be informed of any events which would impact the financials and going concern of the Company, and in such circumstances possible rectifications would be sought to prevent a liquidity issue.

 

The Directors continue to work with the FCA to develop and ratify scenarios around events that may impact the Company's capital and liquidity position and stresses that require rearrangements of individual capital and liquidity positions with and outside of the Group. As such, monthly positions and forward-looking forecasts are shared with the FCA and any guidance variation is taken into consideration in developing future position.

 

The Company has established early warnings indicators of events that could affect going concern in line with FCA's expectations to factor in the most adverse scenarios resulting from external economic and internal Group stress events. The early warning indicators are not intended to be a static list, but one that will evolve in-line with Company's understanding of market and internal conditions and impacts on credit and liquidity and the FCA's position on credit and market liquidity. The Company's Directors are committed to review mitigation strategies to absorb shocks as they occur and accommodate positions seen by the FCA as pre-emptive.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
1.2
Compliance with accounting standards

The Company has applied FRS101 – Reduced Disclosure Framework in the preparation of its financial statements.

 

The Company has prepared and presented these financial statements by applying the recognition, measurement and disclosure requirements of international accounting standards in conformity with the requirements of the Companies Act 2006 .

 

The Company's ultimate parent company, Capita plc, includes the Company in its consolidated statements. The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and with UK-adopted International Financial Reporting Standards ('UK-IFRS') and the Disclosure and Transparency Rules of the UK's Financial Conduct Authority. These are available to the public and may be obtained from Capita plc’s website on https://www.capita.com/investors .

 

In these financial statements, the Company has applied the disclosure exemptions available under FRS 101 in respect of the following disclosures:

 

Since the consolidated financial statements of Capita plc include equivalent disclosures, the Company has also taken the disclosure exemptions under FRS 101 available in respect of the following disclosure:

payments;

1.3
Change in accounting policies

The Company has adopted the new amendments to standards detailed below but they do not have a material effect on the Company's financial statements.

New amendments or interpretations

Effective date

Classification of liabilities as current or non-current and non-current liabilities with Covenants - Amendments to IAS 1

1 January 2024

Lease Liability in a Sale and Leaseback - Amendments to IFRS 16    

1 January 2024

Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7

1 January 2024

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 27 -
1.4
Revenue

The Company operates a diverse range of businesses and accordingly applies a variety of methods for revenue recognition, based on the principles set out in IFRS 15.

 

The revenue and profits recognised in any period are based on the delivery of performance obligations and an assessment of when control is transferred to the customer.

 

Revenue is recognised either when the performance obligation in the contract has been performed (so ‘point-in-time’ recognition) or ‘over-time’ when control of the performance obligation is transferred to the customer.

 

For all contracts, the Company determines if the arrangement with a customer creates enforceable rights and obligations. This assessment results in certain Master Service Agreements ('MSAs') or frameworks not meeting the definition of a contract under IFRS 15 and as such the individual call-off agreements, linked to the MSA, are treated as individual contracts.

 

The Company enters into contracts which contain extension periods, where either the customer or both parties can choose to extend the contract or there is an automatic annual renewal, and/or termination clauses that could impact the actual duration of the contract. Judgement is applied to assess the impact that these clauses have when determining the appropriate contract term. The term of the contract impacts both the period over which revenue from performance obligations may be recognised and the period over which contract fulfilment assets and capitalised costs to obtain a contract are expensed.

 

For contracts with multiple components to be delivered, for example transformation; transitions and the delivery of outsourced services; management applies judgement to consider whether those promised goods and services are:

 

At a contract's inception the total transaction price is estimated, being the amount to which the Company expects to be entitled and has rights to under the contract. This includes an assessment of any variable consideration where the Company’s performance may result in additional revenues based on the achievement of agreed Key Performance Indicators ('KPIs'). Such amounts are only included based on the expected value or the most likely outcome, and only to the extent that it is highly probable that no revenue reversal will occur.

 

The transaction price does not include estimates of consideration resulting from change orders for additional goods and services unless these are already agreed.

 

Once the total transaction price is determined, the Company allocates this to the identified performance obligations in proportion to their relative standalone selling prices and recognises revenue when (or while) those performance obligations are satisfied.

 

The Company infrequently sells standard products with observable standalone prices due to the specialised services required by customers, consequently the Company applies judgement to determine an appropriate standalone selling price. More frequently, the Company sells customers bespoke solutions, and in these cases the Company typically uses the expected cost-plus margin or a contractually stated price approach to estimate the standalone selling price of each performance obligation.

 

The Company may offer price step downs during the life of a contract, but with no change to the underlying scope of services to be delivered. In general, any such variable consideration, price step down or discount is included in the total transaction price to be allocated across all performance obligations unless it relates to only one performance obligation in the contract.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 28 -
Revenue (continued)

For each performance obligation to be recognised over-time, the Company applies a revenue recognition method that faithfully depicts the Company’s performance in transferring control of the goods or services to the customer. This decision requires assessment of the real nature of the goods or services that the Company has promised to transfer to the customer. The Company applies the relevant output or input method consistently to similar performance obligations in other contracts.

 

When using the output method, the Company recognises revenue on the basis of direct measurements of the value to the customer of the goods and services transferred to date relative to the remaining goods and services under the contract. Where the output method is used, in particular for long-term service contracts where the series guidance is applied, the Company often uses a method of time elapsed which requires minimal estimation. Certain long-term contracts use output methods based upon estimations of: user numbers; service activity levels; or fees collected.

 

When transfer of control is most closely aligned to the Company's efforts in delivering the service, the input method is used to measure progress, and revenue is recognised in direct proportion to costs incurred. This is a faithful depiction of the transfer of services because costs (or other inputs) most accurately reflect the incremental benefits received by the customer from efforts to date.

 

If performance obligations in a contract do not meet the over-time criteria, the Company recognises revenue at a point-in-time when the service or good is delivered.

 

Contract modifications

The Company’s contracts are often amended for changes in contract specifications and requirements. Contract modifications exist when the amendment either creates new or changes existing, enforceable rights and obligations.

 

The effect of a contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognised as an adjustment to revenue in one of the following ways:

a) prospectively as an additional separate contract;

b) prospectively as a termination of the existing contract and creation of a new contract;

c) as part of the original contract using a cumulative catch up; or

d) as a combination of (b) and (c).

 

In respect of contracts for which the Company has decided there is a series of distinct goods and services that are substantially the same and have the same pattern of transfer where revenue is recognised over-time, the modification will always be treated under either (a) or (b); (d) may arise when a contract has a part-termination and a modification of the remaining performance obligations.

 

The facts and circumstances of any contract modification are considered individually because the types of modifications will vary contract by contract and may result in different accounting outcomes. Judgement is applied in relation to the accounting for such modifications where the final terms or legal contracts have not been agreed prior to the period end. In these cases management need to determine if a modification has been approved and if it either creates new or changes existing, enforceable rights and obligations of the parties. Depending upon the outcome of such negotiations, the timing and amount of revenue recognised may be different in the relevant accounting periods. Modification and amendments to contracts are undertaken through an agreed formal process. For example, if a change in scope has been approved but the corresponding change in price is still being negotiated, management uses its judgement to estimate the change to the total transaction price. Importantly, any variable consideration is only recognised to the extent that it is highly probable that no revenue reversal will occur. For example, if pricing is subject to indexation based on an external metric (such as the Consumer Price Index ('CPI') or such as the Retail Price Index ('RPI')) then revenue related to the indexation will only be recognised after the relevant indexation is confirmed. Future indexation will not be recognised because it is not highly probable that a significant reversal of an indexation adjustment will not occur.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 29 -
Revenue (continued)

Contract fulfilment costs

Contract fulfilment costs are divided into: (i) costs that give rise to an asset; and (ii) costs that are expensed when incurred.

 

When determining the appropriate accounting treatment for such costs, the Company firstly considers any other applicable standards. If those other standards preclude capitalisation of a particular cost, then an asset is not recognised under IFRS 15.

 

If other standards are not applicable to contract fulfilment costs, the Company applies the following criteria which, if met, result in capitalisation of costs that: (i) directly relate to a contract or to a specifically identifiable anticipated contract; (ii) generate or enhance resources that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) are expected to be recovered.

 

The Company has determined that, where the relevant specific criteria are met, the costs for (i) process mapping and design; (ii) system development; and (iii) project management; are likely to qualify to be capitalised as contract fulfilment assets.

 

The incremental costs of obtaining a contract with a customer are recognised as a contract fulfilment asset if the Company expects to recover them. The Company incurs costs such as bid costs, legal fees to draft a contract and sales commissions when it enters into a new contract.

 

The Company has determined that the following costs may be capitalised as contract fulfilment assets: (i) legal fees to draft a contract after the Company has been selected as preferred supplier; and (ii) sales commissions directly related to winning a specific contract.

 

Costs incurred prior to selection as preferred supplier are not capitalised but expensed when incurred

 

Utilisation

 

The utilisation charge is included within cost of sales. The Company utilises contract fulfilment assets over the expected contract period using a systematic basis that mirrors the pattern in which the Company transfers control of the goods and service to the customer.

 

Derecognition

 

A contract fulfilment asset is derecognised either when it is disposed of or when no further economic benefits are expected to flow from its use or disposal.

 

Impairment

 

At each reporting date, the Company determines whether or not the contract fulfilment assets are impaired by comparing the carrying amount of the asset with the remaining amount of consideration that the Company expects to receive less the costs that relate to providing services under the relevant contract. In determining the estimated amount of consideration, the Company uses the same principles as it does to determine the contract transaction price, except that any constraints used to reduce the transaction price are removed for the impairment test.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 30 -
Revenue (continued)

Licenses

Software licences delivered by the Company are right to access (‘active’) licences, which determines the timing of revenue recognition. The assessment of whether a licence is active involves judgement.

 

The key determinant of an active license is whether or not the Company is required to undertake continuing activities that significantly affect the licensed intellectual property (or the customer has a reasonable expectation that it will do so) and the customer is, therefore, exposed to positive (or negative) impacts resulting from those changes. Where the Company is responsible for any maintenance, continuing support, updates and upgrade, the sale of the initial software is not distinct.

 

When software upgrades are sold as part of the software licence agreement (i.e. software upgrades are promised to the customer), the Company applies judgement to assess whether the software upgrade is distinct from the licence (i.e. a separate performance obligation). If the upgrades are considered fundamental to the ongoing use of the software by the customer, the upgrades are not considered distinct and not accounted for as a separate performance obligation.

 

For each contract that includes a separate licence performance obligation, the Company considers all the facts and circumstances in determining whether the licence revenue is recognised over-time (active) or at a point-in-time (passive) from the go-live date of the licence.

 

Deferred and accrued income

The Company’s customer contracts include a diverse range of payment schedules dependent upon the nature and type of goods and/or services being provided. This can include performance-based payments or progress payments and regular monthly or quarterly payments for ongoing service delivery. Payments for transactional goods and services may be at delivery date, in arrears or part payment in advance. The long-term service contracts tend to have higher cash flows early in the contract to cover transformational activities.

 

Where payments received are greater than the revenue recognised up to the balance sheet date, the Company recognises a deferred income contract liability for this difference. Where payments received are less than the revenue recognised up to the balance sheet date, the Company recognises an accrued contract income asset for this difference.

 

At each balance sheet date, the Company assesses whether there is any indication that accrued contract income assets may be impaired by considering whether or not any revenue reversal could occur. Where an indicator of impairment exists, the Company makes a formal estimate of the asset’s recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 31 -
Revenue (continued)

Contract types

The Company disaggregates revenue from contracts with customers by contract type, because management believe this best depicts how the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows are affected by economic factors. Categories are: long-term contractual – greater than two years; short-term contractual – less than two years; and transactional. The years being measured from the service commencement date.

 

Long-term contractual - greater than two years

The Company provides a range of services under contracts with a duration of more than two years. The nature of contracts or performance obligations within this revenue type includes:

(i) long-term outsourced service arrangements in the public and private sectors; and

(ii) active software license arrangements.

 

The majority of long-term contractual contracts form part of a series of distinct goods and services because they are substantially the same service; and have the same pattern of transfer since the series constitutes services provided in distinct time increments (e.g., daily, monthly, quarterly or annually services) and therefore treats the series as one performance obligation.

 

Short-term contractual - less than two years

The nature of contracts or performance obligations within this revenue type include short-term outsourced service arrangements in the public and private sectors.

 

Transactional (point-in-time) contracts

The Company delivers a range of goods or services that are transactional services for which revenue is recognised at the point-in-time when control of the goods or services has transferred to the customer. This may be at the point of services and acceptance by the customer or when the customer obtains control of an asset or service in a contract with customer-specified acceptance criteria.

 

The nature of contracts or performance obligations within this revenue type include fees received in relation to delivery of professional services.

 

Management is required to determine the recoverability of contract related assets within property, plant and equipment, intangible assets as well as contract fulfilment assets, capitalised costs to obtain a contract, accrued income and trade receivables. At each reporting date, the Company determines whether or not the contract fulfilment assets and capitalised costs to obtain a contract are impaired by comparing the carrying amount of the asset to the remaining amount of consideration that the Company expects to receive less the costs that relate to providing services under the relevant contract. In determining the estimated amount of consideration, the Company uses the same principles as it does to determine the contract transaction price, except that any constraints used to reduce the transaction price will be removed for the impairment test.

Where the relevant contracts or specific performance obligations are demonstrating marginal profitability or other indicators of impairment, judgement is required in ascertaining whether or not the future economic benefits from these contracts are sufficient to recover these assets. In performing this impairment assessment, management is required to make an assessment of the costs to complete the contract.

The ability to accurately forecast such costs involves estimates around cost savings to be achieved over time, anticipated profitability of the contract, as well as future performance against any contract-specific KPIs that could trigger variable consideration, or service credits. Where a contract is anticipated to make a loss, these judgements are also relevant in determining whether or not an onerous contract provision is required and how this is to be measured.

 

 

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 32 -
1.5
Goodwill

Following initial recognition, goodwill is stated at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

 

At the acquisition date, any goodwill acquired is allocated to the cash-generating units ('CGU') which are expected to benefit from the combination’s synergies. Impairment is determined by assessing the recoverable amount of the CGU to which the goodwill relates. Where the recoverable amount of the CGU is less than the carrying amount, an impairment loss is recognised. Where goodwill forms part of a CGU and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in these circumstances is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained.

1.6
Intangible assets other than goodwill

 

Intangible assets are valued at cost less accumulated amortisation and impairment. Amortisation is calculated to write-off the cost in equal annual instalments over asset's estimated useful life, which is typically 5 to 10 years. In the case of capitalised software development costs, research expenditure is written-off to the income statement in the period in which it is incurred.

 

Development expenditure is written-off in the same way unless and until the Company is satisfied with the technical, commercial and financial viability of individual projects. In these cases, the development expenditure is capitalised and amortised over the period during which the Company is expected to benefit.

 

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the assets may be impaired.

1.7
Property, plant and equipment

Property, plant and equipment other than freehold land are stated at cost less depreciation and impairment. Freehold land is not depreciated.Depreciation is provided at rates calculated to write-off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings & Leasehold improvements
Over the period of lease
Fixtures, fittings & equipment
4 - 5 years
Plant and machinery
3 - 5 years/ Over the life of contract
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 33 -
1.8
Financial instruments

Trade and other receivables

Trade receivables are initially recognised at cost (being the same as fair value) and subsequently at amortised cost less any provision for impairment, to ensure the amounts recognised represent their recoverable amount.

 

For trade receivables, the Company applies the simplified approach permitted by IFRS 9 Financial instruments, resulting in trade receivables recognised and carried at original invoice amount less an allowance for any uncollectible amounts based on expected credit losses. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

 

The Company monitors the level of trade receivables on a monthly basis, continually assessing the risk of default by any counterparty. Each customer has an external credit score which determines the level of credit provided.

 

Derecognition: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised (i.e., removed from the Company’s balance sheet) when (i) the rights to receive the cash flows from the asset have expired; or, (ii) the Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risk and rewards of the asset; or, (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

 

Trade and other payables

Trade and other payables are recognised initially at cost (being same as fair value). Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

 

Cash and cash equivalents

Cash in the balance sheet comprise cash at bank and in hand. Bank overdrafts are shown within current financial liabilities. Interest on these balances is recognised in the income statement as finance income/ cost.

 

Interest-bearing loans and borrowings

All loans and borrowings are initially recognised at their fair value less any directly attributable transaction costs. After initial recognition, loans and borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method.

 

Gains and losses are recognised in the income statement when the liabilities are derecognised, as well as through the amortisation process.

1.9
Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 34 -

Taxation (Continued)

 

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

 

Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

 

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

 

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

1.10
Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising from past events, it is probable that cash will be paid to settle it, and the amount can be estimated reliably.

 

If the effect of the time value of money is material, provisions are discounted using the yield on government bonds which have a similar timing and currency of cash flows to the provision being discounted. Where required adjustments are made to the yields to reflect the risks specific to the cash flows being discounted. The unwinding of the discount is recognised as a financing cost in the income statement.

 

The value of the provision is determined based on assumptions and estimates in relation to the amount, timing and likelihood of actual cash flows, which are dependent on future events. Where no reliable basis of estimation can be made, no provision is recorded. However, contingent liabilities disclosures are given when there is a greater than remote probability of outflow of economic benefits.

 

On an ongoing basis, management monitor provisions and their accurate estimation when compared to final outcomes.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 35 -
1.11
Pensions

The Company participates in a number of defined contribution pension schemes where contributions are charged to the income statement account in the year in which they are due. These schemes are funded and the payment of contributions is made to separately administered trust funds. The assets of these schemes are held separately from the Company. The Company remits monthly pension contributions to Capita Business Services Ltd, a fellow subsidiary company, which pays the Group liability centrally. Any unpaid contributions at the year-end have been accrued in the accounts Capita Business Services Ltd.

 

The Company also has employees who are members of the Group’s main defined benefit pension scheme (“HPS”). The Company has current employees who continue to accrue benefits in the HPS.

 

As there is no contractual agreement or stated group policy for charging the net defined benefit cost of the HPS to participating entities. The net defined benefit costs of the HPS is recognised fully in the accounts of the Principal Employer (Capita Business Services Ltd). The Company then recognises a cost equal to its contributions payable for the period.

 

The contributions payable by the participating entities are determined on the following basis:

-The HPS provides benefits on a defined benefit basis funded from assets held in a separate trustee administered fund.

-The HPS is a non-segregated scheme with around 200 different sections in the scheme where each section provides benefits on a particular benefit basis (some based on final salary, some based on career average earnings) to particular groups of employees.

-At each full actuarial valuation of the HPS (carried out triennially) the contribution rates for all those sections where there are remaining active members are calculated. These are then rationalised such that sections with similar employer contribution rates (when expressed as a percentage of pensionable pay) are grouped together and an average employer contribution rate for each of the rationalised groups calculated.

-The Company's contribution is consequently calculated by applying the appropriate average employer contribution rate to the pensionable pay of its employees participating in the scheme.

A full actuarial valuation of the HPS is carried out every three years by an independent qualified actuary for the

Trustee of the HPS, with the last full valuation carried out as at 31 March 2023. The next full actuarial valuation

is due to be carried out with an effective date of 31 March 2026.

 

In addition, the Company has a small number of employees who are members of two separate and segregated

sections of the Industry-Wide Coal Staff Superannuation Scheme (a defined benefit pension scheme) and who

are continuing to accrue benefits.

 

There are contractual protections in place to limit the financial risk to the Company of participation in one of these sections and the other section is very small and immaterial in the context of these accounts and so in light of this they are reported on a defined contribution basis recognising a cost equal to the contributions payable over the period.

 

Finally, the Company has its own segregated section in a cross-border defined benefit pension scheme operated by the Group (the Capita International Retirement Benefit Scheme). The beneficiaries of this scheme have their benefits, and the Trustees of this scheme hold assets, denominated in euros. The scheme is governed under the UK regulations and subject to the further requirements applying to cross border schemes.

 

The cost of providing benefits under this defined benefit pension scheme is determined using the projected unit

credit method and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 36 -
1.12
Leases

The Company leases land and buildings.

 

The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of the lease, the Company recognises a right-of-use asset at cost, which comprises the present value of minimum lease payments determined at the inception of the lease. Right-of-use assets are depreciated using the straight-line method over the shorter of estimated life or the lease term.

 

Depreciation is included within administrative expenses in the income statement. Amendment to lease terms resulting in a change in payments or the length of the lease results in an adjustment to the right-of-use asset and liability. Right-of- use assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be fully recoverable. Right-of-use assets exclude leases with low values and terms of twelve months or less.

The Company as a lessee - Right-of-use assets and lease liabilities

The Company recognises lease liabilities where a lease contract exists and right-of-use assets representing the right to use the underlying leased assets. At lease commencement date, the Company recognises lease liabilities measured at the present value of the lease payments to be made over the lease term.

 

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, over a similar term and with a similar security, the funds necessary to acquire an asset of a similar value to the right-of-use asset in a similar economic environment. Incremental borrowing rates are determined monthly and depend on the term, currency and start date of the lease. The incremental borrowing rate is determined based on a series of inputs including: the risk-free rate based on swap market data; a credit risk adjustment; and an entity-specific adjustment. The lease liability is subsequently remeasured (with a corresponding adjustment to the related right-of-use asset) when there is a change in future lease payments due to a renegotiation or market rent review, a change of an index or rate or a reassessment of the lease term.

 

Lease payments are apportioned between a finance charge and a reduction of the lease liability based on the constant interest rate applied to the remaining balance of the liability. Interest expense is included within net finance costs in the income statement. Lease payments comprise fixed payments, including in-substance fixed payments such as service charges and variable lease payments that depend on an index or a rate, initially measured using the minimum index or rate at inception date. The payments also include any lease incentives and any penalty payments for terminating the lease, if it is anticipated that the Company will exercise that option.

 

The lease term determined comprises the non-cancellable period of the lease contract. Periods covered by an option to extend the lease are included if the Company has reasonable certainty that the option will be exercised, and periods covered by an option to terminate are included if it is reasonably certain that this will not be exercised.

 

The Company has elected to apply the practical expedient in IFRS 16 paragraph 15 not to separate non-lease components such as service charges from lease rental charges.

1.13
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. All foreign exchanges gains/losses are recognised in the income statement.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 37 -
1.14
Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on whether they are current or non-current.

 

An asset is current when it is:

All other assets are classified as non-current.

 

A liability is current when:

The Company classifies all other liabilities as non-current.

2
Significant accounting judgements, estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principles requires the directors to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the presented periods. Although these judgements and assumptions are based on the directors’ best knowledge of the amount, events or actions, actual results may differ.

 

The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows :

Measurement and impairment of Contract fulfilment asset

The Company determines whether the costs incurred are appropriate to be capitalised by generating or enhancing resources of the Company that will be used in satisfying performance obligations in the future. The Company also determines whether contract fulfilment assets are recoverable and whether they should be impaired on an annual basis and thus requires an estimation of the lifetime profitability for the contracts to which the contract fulfilment assets are allocated. This involves estimation of future costs to service contract deliverables and choosing a suitable discount rate.

Provision

The Company applies Judgement in measuring and recognising provisions related to pending litigation or other outstanding claims subject to negotiated settlement, mediation and arbitration. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Refer note 14 for further details.

3
Revenue

The total revenue of the Company for the year has been derived from its principal activity largely undertaken in the United Kingdom.

 

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
4
Operating profit
Notes
2024
2023
Operating profit for the year is stated after charging
£m
£m
Depreciation of property, plant and equipment
7
0.6
0.7
Depreciation of right-of-use assets
7
0.5
0.5
Amortisation of intangible assets
8
3.3
2.5
Impairment of right-of-use assets
7
-
0
0.4
Contract fulfilment assets - utilisation and derecognition
9
3.9
4.6
Short term lease rentals
0.2
0.3
Cyber incident costs
-
0
3.6

Audit fees are borne by the ultimate parent company, Capita plc. The audit fee for the current period was £60,000 (2023: £70,000). The Company has taken advantage of the exemption provided by regulations 6(2)(b) of The Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008 not to provide information in respect of fees for other (non-audit) services as this information is required to be given in the Group accounts of the ultimate parent company, which it is required to prepare in accordance with the Companies Act 2006.

5
Net finance income
2024
2023
£m
£m
Interest income
Interest income on bank balance
4.5
2.4
Interest receivable from Group companies
0.1
0.1
4.6
2.5
Interest expense
Interest expense on lease liabilities
(0.2)
(0.2)
(0.2)
(0.2)
Total net finance income
4.4
2.3
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
6
Income tax
The major components of income tax charge are:
2024
2023
£m
£m
Current tax
UK corporation tax
7.6
4.7
Adjustments in respect of prior periods
(0.1)
-
0
7.5
4.7
Deferred tax
Origination and reversal of temporary differences
0.1
-
0
Adjustment in respect of prior periods
0.2
-
0
0.3
-
0
Total tax charge
7.8
4.7
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Income tax
(Continued)
- 40 -

The reconciliation between tax charge and the accounting profit multiplied by the UK corporation tax rate for the years ended 31 December 2024 and 2023 is as follows:

2024
2023
£m
£m
Profit before taxation
30.6
19.8
Expected tax charge based on the weighted average Corporation Tax rate of 25.00% (2023: 23.50%)
7.7
4.7
Adjustments in respect of current income tax of prior years
0.1
-
Total adjustments
0.1
-
Total tax charge reported in the income statement
7.8
4.7
Balance sheet
Income statement
2024
2023
2024
2023
£m
£m
£m
£m
Deferred tax assets
Accelerated/ (decelerated) capital allowances
1.4
1.6
(0.2)
(0.1)
Tax losses
0.9
0.9
-
0
-
0
Other short term timing differences
-
0
0.1
(0.1)
0.1
Deferred tax assets
2.3
2.6
Deferred tax credit to income statement
(0.3)
-
0

A change to the main UK corporation tax rate was substantively enacted on 24 May 2021. The rate applicable from 1 April 2023 increased from 19% to 25%. The deferred tax asset at 31 December 2024 has been calculated based on this rate.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 41 -
7
Property, plant and equipment
Land and buildings & Leasehold improvements
Fixtures, fittings & equipment
Plant and machinery
Total
£m
£m
£m
£m
Cost
At 1 January 2024
4.7
0.3
0.9
5.9
Asset retirement
(0.1)
-
0
-
0
(0.1)
At 31 December 2024
4.6
0.3
0.9
5.8
Accumulated depreciation and impairment
At 1 January 2024
4.0
0.3
0.7
5.0
Charge for the year
0.5
-
0
0.1
0.6
Asset retirement
(0.1)
-
0
-
0
(0.1)
At 31 December 2024
4.4
0.3
0.8
5.5
Net book value
At 31 December 2024
0.2
-
0
0.1
0.3
At 31 December 2023
0.7
-
0
0.2
0.9
Right-of-use assets
Land and buildings
£m
Net book value at 1 January 2024
1.6
Depreciation charge
(0.5)
Other movements*
0.1
Net book value at 31 December 2024
1.2

*Other movements includes amendments to the lease.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 42 -
8
Intangible assets
Goodwill
Software
Client lists and relationships
Total
£m
£m
£m
£m
Cost
At 1 January 2024
69.4
26.2
10.6
106.2
Additions
-
0
8.2
-
0
8.2
Asset retirement
-
0
(2.9)
-
0
(2.9)
At 31 December 2024
69.4
31.5
10.6
111.5
Amortisation and impairment
At 1 January 2024
-
0
6.7
10.6
17.3
Charge for the year
-
0
3.3
-
0
3.3
Asset retirement
-
0
(2.9)
-
0
(2.9)
At 31 December 2024
-
0
7.1
10.6
17.7
Net book value
At 31 December 2024
69.4
24.4
-
0
93.8
At 31 December 2023
69.4
19.5
-
0
88.9
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 43 -
9
Contract fulfilment assets
£m
At 1 January 2023
14.6
Additions
4.6
Utilised during the year
(3.5)
Derecognition
(1.1)
At 31 December 2023
14.6
Additions
13.1
Utilised during the year
(3.9)
At 31 December 2024
23.8

In preparing these financial statements, the Company undertook a review to identify indicators of impairment of contract fulfilment assets. The Company determined whether or not the contract fulfilment assets were impaired by comparing the carrying amount of the assets to the remaining amount of consideration that the entity expects to receive less the costs that relate to providing services under the relevant contract. In determining the estimated amount of consideration, the entity used the same principles as it does to determine the contract transaction price, except that any constraints used to reduce the transaction price were removed for the impairment test.

 

In line with our accounting policy, as set out in note 1.4, if a contract or specific performance obligation exhibited marginal profitability or other indicators of impairment, judgement was applied to ascertain whether or not the future economic benefits from these contracts were sufficient to recover these assets. In performing this impairment assessment, management is required to make an assessment of the costs to complete the contract. The ability to accurately forecast such costs involves estimates around cost savings to be achieved over time, anticipated profitability of the contract, as well as future performance against any contract-specific key performance indicators that could trigger variable consideration, or service credits.

10
Trade and other receivables
Current
2024
2023
£m
£m
Trade receivables
16.3
14.3
Amounts due from Group companies
60.2
53.8
Other receivables
0.6
0.6
Accrued income
8.4
11.0
Prepayments
1.2
1.0
86.7
80.7
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Trade and other receivables
(Continued)
- 44 -
Non-current
2024
2023
£m
£m
Other receivables
0.9
1.0
Prepayments
0.3
0.1
1.2
1.1

Amounts due from group companies are repayable on demand. These are not chargeable to interest except for amounts due from Capita plc, on which interest is charged as per the prevailing Bank of England rates.

 

The amount due from group companies includes £60m due from Capita Plc. Further details are provided in Note 22.

 

11
Cash and cash equivalents
2024
2023
£m
£m
Cash at bank and in hand
50.0
30.2
50.0
30.2

Cash at bank includes deposits £31.0m (2023 £11.1m) held with Barclays Bank plc and NatWest Bank, the majority is held with Barclays Bank plc and is part of a pooling arrangement with other subsidiaries of Capita plc and £19.0m (2023 £19.1m) within ringfenced Capita Pension Solutions Limited accounts of NatWest bank (£10.7m) and Lloyds Bank (£8.3m).

12
Trade and other payables
Current
2024
2023
£m
£m
Trade payables
0.9
1.4
Amount due to Group companies
4.8
3.2
Accruals
4.2
3.5
Other taxes and social security
6.7
5.6
16.6
13.7

Amounts due to group companies are repayable on demand and are interest free.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 45 -
13
Lease liabilities

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£m
£m
Current liabilities
0.5
1.3
Non-current liabilities
0.8
1.3
1.3
2.6
2024
2023
Amounts recognised in the income statement include the following:
£m
£m
Interest on lease liabilities
0.2
0.2
2024
2023
Maturity analysis - contractual undiscounted cash flows
£m
£m
Less than one year
0.6
1.5
One to two years
0.6
0.6
More than two years
0.3
0.9
Total undiscounted liabilities at 31 December
1.5
3.0
14
Provisions
2024
2023
£m
£m
Current
3.6
8.3
Non-current
1.8
0.3
5.4
8.6
Property and severance
Claims
Other provisions
Total
£m
£m
£m
£m
At 1 January 2024
1.0
7.3
0.3
8.6
Provisions in the year
0.4
4.1
0.1
4.6
Releases in the year
-
0
(4.2)
-
0
(4.2)
Utilisation
(0.6)
(2.7)
(0.3)
(3.6)
At 31 December 2024
0.8
4.5
0.1
5.4
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Provisions
(Continued)
- 46 -

The Company is subject to claims and litigation arising out of the ordinary course of business, resulting principally from alleged errors and omissions in connection with the Company's pension administration and consulting business. A provision is made when a claim has been made where it is more probable than not that a loss might occur. These provisions are reassessed regularly to ensure that the level of provisioning is consistent with the claims that have been reported. The range of values attached to these claims can be significant and where obligations are probable and estimable, provisions are made representing the business’s best estimate of the expenditure to be incurred.

 

The property provisions relate to unavoidable running cost of leasehold property where the space is vacant or currently not planned to be used for ongoing operations and for dilapidation costs. The severance provisions relate to the cost of reducing headcount where communication to affected employees has crystallised a valid expectation that roles are at risk and it is likely to unwind over the next twelve months.

 

Other provisions mainly pertains to onerous contracts which have been utilised in the current year.

15
Deferred income
2024
2023
£m
£m
Current
Deferred income
28.5
18.2
28.5
18.2

The deferred income balances solely relates to revenue from contracts with customers. Movements in the deferred income balances were driven by transactions entered into by the Company within the normal course of business in the year. Revenue recognised in the reporting period that was included in the deferred income balance at the beginning of the period was £17.4m (2023: £17.4m).

 

16
Share capital
2024
2023
2024
2023
Number
Number
£m
£m
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January and 31 December
30,115,627
30,115,627
30,115,627
30,115,627
CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 47 -
17
Employee benefits

The Company participates in both defined benefit and defined contribution pension schemes.

 

The pension charge for the defined contribution pension schemes for the year is £3.4m (2023 : £3.2m).

 

The pension charge for all the defined benefit pension schemes for the year was £0.7m (2023: £0.8m).

 

The pension charge excludes pension contributions paid by the Company on behalf of employees via a salary sacrifice arrangement.

 

The Group’s main defined benefit scheme (“HPS”)

 

The Company has current and former employees who are members of the HPS, which is a defined benefit pension scheme. The Company has current employees who continue to accrue benefits in the HPS.

 

A full actuarial valuation of the HPS is carried out every three years by an independent actuary for the Trustee of the HPS, with the last full valuation carried out as at 31 March 2023. Amongst the main purposes of the valuation is to agree a contribution plan such that the pension scheme has sufficient assets available to meet future benefit payments, based on assumptions agreed between the Trustee of the HPS and the Principal Employer (Capita Business Services Ltd, a fellow subsidiary company). The 31 March 2023 valuation showed a funding surplus of £51.4m (31 March 2020: funding deficit of £182.2m). This equates to a funding level of 105% (31 March 2020: 89%).

 

Given the funding position of the HPS, the Principal Employer and the Trustee of the HPS agreed that no further deficit recovery contributions from the Principal Employer are required other than those already committed1 as part of the 31 March 2020 actuarial valuation. In accordance with the schedule of contributions put in place following the 31 March 2023 actuarial valuation, the Principal Employer has paid £6.3m of regular deficit contributions during 2024 and £14.5m of accelerated deficit funding contributions triggered by the disposal of certain businesses in prior years. Given the healthy funding position of the HPS as at 31 March 2023, and the Group having paid all outstanding deficit contributions in 2024, there are no further agreed deficit contributions to be paid at this time.

 

1.These include additional, non-statutory, contributions to meet a secondary funding target with the objective of having sufficient assets to invest in a portfolio of low-risk assets with a low dependency covenant that will generate income to pay members’ benefits as they fall due.

 

Finally, the Principal Employer agreed an average employer contribution rate of 23.6% of pensionable salary towards the expected cost of benefits accruing.

 

The next scheme full actuarial valuation is due to be carried out with an effective date of 31 March 2026.

 

For the purpose of the consolidated accounts of Capita plc, an independent qualified actuary projected the results of the 31 March 2023 full actuarial valuation, to 31 December 2024 taking account of the relevant accounting requirements.

 

The principal assumptions for the accounting valuation as at 31 December 2024 were as follows: rate of increase in RPI/CPI price inflation - 3.10% pa/2.55% pa (2023: 3.05% pa/2.45% pa); rate of salary increase - 3.10% pa (2023: 3.05% pa); rate of increase for pensions in payment (where RPI inflation capped at 5% pa applies) - 2.95% pa (2023: 3.0% pa); discount rate - 5.50% pa (2023: 4.55% pa).

 

The HPS assets at fair value as at 31 December 2024 totalled £1,034.4m (2023: £1,154.4m). The actuarially assessed value of HPS as at 31 December 2024 was £995.1m (2023: £1,125.0m) indicating that the HPS had a net asset of £39.3m (2023: net asset of £29.4m). These figures are quoted gross of deferred tax. The full disclosure is available in the consolidated accounts of Capita plc.

For the purpose of these accounts, this Company’s interest in the HPS is reported on a defined contribution basis recognising a cost equal to its contributions payable during the period. The pension charge in respect of this scheme is included in the pension charge for all the defined benefit schemes shown above.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Employee benefits
(Continued)
- 48 -

Other Defined Benefit Schemes

 

The Company has a small number of employees who are members of two separate and segregated sections of the Industry-Wide Coal Staff Superannuation Scheme (a defined benefit pension scheme) and who are continuing to accrue benefits.

 

There are contractual protections in place to limit the financial risk to the Company of participating in one of these sections and the other section is very small and immaterial in the context of these accounts and so in light of this they are reported on a defined contribution basis recognising a cost equal to its contributions payable over the period. The pension charge in respect of this scheme is included in the pension charge for all the defined benefit schemes shown above.

 

The Company has its own segregated section in a cross-border defined benefit pension scheme operated by the Group (“CEB section of Capita International Retirement Benefit Scheme” (“CEB section of CIRBS”)). The beneficiaries of this scheme have their benefits, and the trustees hold assets, denominated in euros. The scheme is governed under the UK regulations and subject to the further requirements applying to cross border schemes.

 

Details of CEB section of CIRBS scheme are as follows:-

 

 

Defined benefit obligations

Fair value of plan assets

Net defined benefit asset

 

2024

2023

2024

2023

2024

2023

£m

£m

£m

£m

£m

£m

Balance at 1 January

(0.1)

(0.1)

0.2

0.2

0.1

0.1

 

--------

--------

--------

--------

--------

--------

Included in the income statement:

Past service cost including curtailments

 

-

 

-

 

-

 

-

 

-

 

-

 

--------

--------

--------

--------

--------

--------

Sub-total in income statement

-

-

-

-

-

-

 

--------

--------

--------

--------

--------

--------

Included in other comprehensive income: Remeasurements loss/(gain):

Actuarial loss/(gain) arising from:

- financial assumptions

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

Return on plan assets excluding interest

-

-

-

-

-

-

 

--------

--------

--------

--------

--------

--------

Sub-total in other comprehensive income

-

-

-

-

-

-

Employer contributions

-

-

-

-

-

-

Exchange differences

-

-

-

-

-

-

 

--------

--------

--------

--------

--------

--------

Balance at 31 December

(0.1)

(0.1)

0.2

0.2

0.1

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

=====

=====

=====

=====

=====

=====

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Employee benefits
(Continued)
- 49 -

 

2024

2023

Main assumptions:

%

%

Inflation

2.00

2.30

Discount rate

3.60

3.70

 

 

The average future life expectancy from age 65 (in years) for mortality tables used to determine scheme liabilities for the CEB section of CIRBS at 31 December 2024 and 31 December 2023 are as follows:

 

Member currently aged 65 (current life expectancy)

Member currently aged 45 (life expectancy at 65)

Male

Female

Male

Female

2024

2023

2024

2023

2024

2023

2024    

2023

21.9

21.9

24.0

23.9

22.6

22.6

25.3    

25.2

 

 

The fair value of scheme assets at the reporting period end was as follows:

 

 

2024

Quoted

£m

2023

Quoted

£m

Debt instruments

0.2

0.2

 

18
Employees
2024
2023
Number
Number
Operations
2,110
2,088
Sales
21
19
Admin
258
197
Total
2,389
2,304

Their aggregate remuneration comprised:

2024
2023
£m
£m
Wages and salaries
92.4
88.3
Social security costs
10.3
9.9
Pension costs
4.1
4.0
106.8
102.2

The above includes payroll costs for temporary staff as well as recharges from other Group entities in respect of various services received by the Company throughout the year.

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 50 -
19
Directors' remuneration
2024
2023
£m
£m
Remuneration for qualifying services
0.7
0.8
0.7
0.8

Four Directors are paid by the Company (2023: Four) for qualifying services provided by these Directors on the Company's affairs, Directors’ remuneration has been allocated to the Company during the period of their directorship. The Directors of the Company were also reimbursed for the expenses incurred by them whilst performing business responsibilities.

 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to Two (2023 - Two).

The number of directors who exercised share options during the year was Two (2023 - One).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was Two (2023 - Two).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£m
£m
Remuneration for qualifying services
0.3
0.4
0.3
0.4
20
Contingent liabilities

Contingent liabilities represent potential future cash outflows which are either not probable or cannot be measured reliably.

 

As on 31 December 2024, the Company has indemnities provided through the normal course of business.

 

The Company also forms a part of cross - guarantee in respect of the overdrafts of its fellow subsidiary companies under the notional cash pool bank arrangements. The cross guarantee of the Company is limited to the current amount on deposit on the cash pool.

21
Controlling party

The Company's immediate parent company and ultimate parent company is Capita plc, a company incorporated in England and Wales. The annual report and consolidated financial statements of Capita plc are available from its registered office at First Floor, 2 Kingdom Street, Paddington, London, England, W2 6BD, and on its website www.capita.com/investors

CAPITA PENSION SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 51 -
22
Post balance sheet date events

In December 2024 there was a sweep of £60m to Capita plc as part of the cash pooling arrangement, recorded as an intercompany receivable in the books of the Company. This was repaid in January 2025.

The Company's ringfenced cash also increased by £6m to £25m in January 2025.

 

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