Company registration number 02018542 (England and Wales)
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
COMPANY INFORMATION
Directors
Capita Corporate Director Limited
C J Gregory
(Appointed 27 February 2024)
T Stobbs
(Appointed 8 October 2024)
Secretary
Capita Group Secretary Limited
Company number
02018542
Registered office
First Floor
2 Kingdom Street
Paddington
London
England
W2 6BD
Banker
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
CONTENTS
Page
Strategic report
1 - 7
Directors' report
8 - 9
Income statement
10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 45
CAPITA PROPERTY AND INFRASTRUCTURE 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 Property and Infrastructure Limited ('the Company') is a wholly owned subsidiary (indirectly held) of Capita plc. Capita plc, along with all its subsidiaries is hereafter referred to as 'the Group'. The Company operates within the Capita Public services division of the Group.

Principal activities

The principal activity of the Company is to provide a comprehensive range of property and regulatory-related professional services across building services, engineering, cost and project management, planning and building control within the public sector. The Directors are not aware, at the date of this report, of any likely major changes in the Company's activities in the next year.

Review of the business

As shown in Company's income statement on page 10, revenue has decreased from £45,979,716 in 2023 to £44,560,468 in 2024 mainly on account of decrease in transactional revenue.

The Company reported an operating loss of £3,520,835 in 2023 which has turned into an operating profit of £5,348,533 in 2024, primarily due to material costs incurred in the prior year in relation to the exited business, as well as a turnaround in one of the existing contracts following contractual negotiations.

The balance sheet on pages 12 to 13 of the financial statements shows the financial position at the year end. Net assets have increased from £53,534,585 in 2023 to £59,569,402 in 2024 on account of profit during the year.

Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 13, 16 and 24 to the financial statements.

Key financial performance indicators used by the Group are adjusted revenue, adjusted operating profit, adjusted operating margin, adjusted basic/diluted earnings per share, free cash flow excluding business exits, and gearing ratios. Capita plc and its subsidiaries manage their operations on an operating segment or divisional basis or at Group level and as a consequence, some of these indicators are monitored only at an operating segment, division or Group level. The performance of the Capita Public Service division of the Group is discussed in the Group’s annual report which does not form part of this report.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The Company is exposed to a wide range of risks that, should they materialise, could have a detrimental impact on financial performance, reputation or operational resilience. The Company’s risk management framework provides a consistent approach to the identification, assessment, monitoring and reporting of risks and opportunities. The risk management process is based on risk registers and risk reporting at the established risk governance committees. Key risks are documented in the risk registers and have assigned risk owners who review them regularly, and report on them on at least a half-yearly basis at divisional and functional risk governance committees, Executive risk and Ethics Committee and Audit and Risk Committee. The effectiveness of existing controls is evaluated to determine whether any further mitigating actions are needed to manage the risk level to within the risk appetite set by the Board.

The principal risks for the Company are:

Profitable growth

Attract new clients and retain existing clients on appropriate commercial terms.

Contract performance

Deliver services to clients in line with contractual and legal obligations.

Innovation

Innovate and develop new customer value propositions with speed and agility.

People attraction and retention

Attract, develop, engage and retain the right talent.

Financial stability

Our ability to maintain financial resilience and achieve financial targets.

Cyber security

Protect our systems, networks and programs from unauthorised use and access.

Environment, social and governance

Comply with regulatory and contractual requirements to drive a purpose driven organisation with the right focus on governance.

Safety and Health

Protect the safety, health and duty of care of all Capita’s employees, the people we work with and those affected by our acts and omissions.

Data governance and data privacy

Manage our data effectively (both clients and Capita) as a strategic asset across the organisation.

As a subsidiary of Capita plc, the Company is subject to controls and risk governance techniques across all businesses. Details of the specific risk assessments and mitigating actions are outlined on pages 70-74 of the Group's 2024 Annual Report.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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

- People surveys

- Regular all-employee communications

- Via Nneka Abulokwe, our designated non-executive director for colleague engagement who has visited businesses in the UK and South Africa.

- Employee focus groups and network groups

- Workforce engagement on remuneration

Topics of engagement

- Creating an inclusive workplace

- Health and wellbeing

- Speak Up policy

- Directors’ remuneration and pay at Capita

- Acting on survey feedback

- The career path framework

- Our cultural programme

- Annual salary review

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 PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Section 172 statement (continued)

Our People (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

- Our ability to retain and develop people, impacting our quality of service and our financial performance

- Our ability to evolve our culture and practices in line with our responsible business agenda

Key metrics

Voluntary attrition, eNPS, 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

- Regular client meetings, monthly or quarterly business reviews and surveys

- Regular meetings with government stakeholders and annual review with the Cabinet Office

- Through our customer advisory boards

- Through our senior client partner programme which provides an experienced single point of contact for key clients and customers

- Introductory meetings and correspondence with the new CEO, and ongoing meetings with Divisional CEOs, Public Service and Experience

Topics of engagement

- Current service delivery, continuous improvement initiatives and operational excellence

- Transition and mobilisation of services

- Capita’s digital and gen AI transformation capabilities, such as agent suite and Capita contact

- Possible future services, market and client needs

- Co-creation of client value propositions in collaboration with our hyperscaler partners, AWS, Salesforce, Microsoft and Service Now

- Ongoing benefits of hybrid working, near and off-shore capabilities on client services

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 and account plans to build understanding of client issues and ideas to help address them.

Risks to stakeholder relationship

- Loss of business by not providing the services that our clients and customers want

- Damage to reputation by not delivering to the requirements of our clients and customers

- Loss of customers for our clients

Key metrics

Customer NPS; specific feedback on client engagements.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Section 172 statement (continued)

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

- Transparent and fair procurement processes

- Collaboration on joint initiatives that drive innovation and foster long-term partnerships

- Reliable and timely payment terms

- Shared commitment to sustainability, resilience, and compliance with Science-Based Targets (SBTs) backed approach to net zero

- Provision of a safe working environment for anyone affected by Capita businesses while upholding the highest standards of ethical conduct in all endeavours

- Partnering with diverse suppliers that bring innovation, disruptive technologies and positively impact local communities

- Maintaining availability, integrity and confidentiality of our business relationships and the systems that support them, remaining resilient through periods of disruption

How we engaged

- Strategic collaboration with hyperscalers: including regular engagement with AWS, Microsoft and ServiceNow focused on co-creating solutions for Capita’s clients, integrating advanced AI and cloud capabilities into our offerings

- Innovation forums: by conducting joint workshops with hyperscalers to align on product roadmaps and explore new technologies that enhance the customer experience

- Performance reviews: by ongoing performance assessments to ensure value delivery and alignment with Capita’s strategic goals

- Sustainability partnerships: collaborating with hyperscalers to assess and mitigate the environmental impact of cloud-based operations, contributing to the reduction of Capita’s Scope 3 carbon footprint

- Engagement reviews: regular supplier meetings, ensuring openness throughout the source to procure process complete with in-life feedback questionnaires and risk assessments

Topics of engagement

- New technology and GenAI offerings suitable for both Capita and Capita-customer use

- Supplier payments

- Sourcing requirements and bid opportunities

- Supplier performance monitoring

- Supplier charter commitments

- Partnering opportunities

- Joint development of AI powered customer service tools

- Deployment of cloud-native platforms to modernise public and private sector operations

- Commitment to sustainability, including carbon footprint transparency and initiatives to meet net zero goals

- Enhancing cybersecurity standards across partner ecosystems to safeguard stakeholders

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 PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Section 172 statement (continued)

Suppliers and Partners (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.

During 2024, 92% of our suppliers were paid within 60 days.

Risks to stakeholder relationship

- Evolving regulatory and environmental requirements

- Maintaining shared commitments to transparency and sustainability

- Maintaining resilience in the supply chain and partner ecosystems

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; community engagement; diversity and inclusion; climate change; business ethics; accreditations and benchmarking; and cost of living crisis.

How we engaged

- Membership of non-governmental organisations

- Charitable and community partnerships

- External accreditations and benchmarking

- Working with clients, suppliers, and the Cabinet Office

Topics of engagement

- Youth employment

- Workplace inequalities

- Diversity & inclusion

- Climate change

- Community 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 PROPERTY AND INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -

Society (continued)

Risks to stakeholder relationship

- Lack of understanding of the issues important to them

- Insufficient communication or involvement in shaping and influencing strategies and plans

Key metrics

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

On behalf of the board

T Stobbs
Director
4 September 2025
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -

The Directors present their Directors' r eport and f inancial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 10.

During the yea r, the Company did not propose or pay any dividend (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:

N Garfield
(Resigned 7 October 2024)
Capita Corporate Director Limited
P S Abraham
(Resigned 20 August 2024)
P Papathomas
(Resigned 29 February 2024)
C J Gregory
(Appointed 27 February 2024)
T Stobbs
(Appointed 8 October 2024)
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. This qualifying third-party indemnity provisions remains in force as at the date of approving the Directors' report.

Political donations

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

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 C ompany continues and that the appropriate training is arranged. It is the policy of the C ompany 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 as employees 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-today 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.

Environment

Capita plc recognises the importance of its environmental responsibilities, monitors its impact on the environment, and design designs and implements policies to reduce any damage that might be caused by the Group’s activities. The Company operates in accordance with Group policies, which are described in the Group’s annual report which does not form part of this report. Initiatives designed to minimise the Company’s impact on the environment include safe disposal of waste, recycling and reducing energy consumption.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Statement of Directors' responsibilities

The Directors are responsible for preparing the Strategic report, the Directors’ 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 they have elected to prepare the financial statements in accordance with United Kingdom ('UK') accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.

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 its profit or loss for that period. In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and use 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.

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 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.

Strategic report

In accordance with s414c(11) of the Companies Act 2006, the Company has set out certain information in its Strategic report that is otherwise required to be disclosed in the Directors' report. This includes information regarding results and activities and a description of the principle risks and uncertainties facing the Company.

On behalf of the board
T Stobbs
Director
4 September 2025
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Revenue
3
44,560,468
45,979,716
Cost of sales
(37,153,971)
(39,274,715)
Gross profit
7,406,497
6,705,001
Administrative expenses
(2,057,964)
(10,225,836)
Operating profit/(loss)
4
5,348,533
(3,520,835)
Impairments
5
-
0
(9,859)
Net finance income
6
2,703,975
2,428,559
Profit/(loss) before tax
8,052,508
(1,102,135)
Income tax (charge)/credit
7
(1,998,941)
87,231
Profit/(loss) for the year
6,053,567
(1,014,904)

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

The notes and information on pages 15 to 45 form an integral part of these financial statements.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Profit/(loss) for the year
6,053,567
(1,014,904)
Other comprehensive expense
Items that will not be reclassified subsequently to the income statement:
Actuarial loss on defined benefit pension schemes
21
(25,000)
(35,000)
Income tax effect
7
6,250
8,750
Other comprehensive expense for the year, net of tax
(18,750)
(26,250)
Total comprehensive income/(expense) for the year
6,034,817
(1,041,154)

The notes and information on pages 15 to 45 form an integral part of these financial statements.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
Non-current assets
Intangible assets
9
43,418
74,419
Right-of-use assets
8
-
0
54,506
Investments in subsidiaries
10
9,163,763
9,163,763
Contract fulfilment assets
12
20,934
270,723
Trade and other receivables
13
32,745
4,929
Deferred tax assets
7
5,177,389
5,163,444
Employee benefits
21
380,000
410,000
14,818,249
15,141,784
Current assets
Trade and other receivables
13
74,918,543
66,884,242
Cash and cash equivalents
14
-
0
840,772
74,918,543
67,725,014
Total assets
89,736,792
82,866,798
Current liabilities
Trade and other payables
16
14,101,112
13,973,394
Deferred income
19
5,342,502
5,198,850
Lease liabilities
17
-
0
62,648
Financial liabilities
15
1,587,455
-
0
Provisions
18
5,194,659
7,878,181
Income tax payable
2,219,209
222,415
28,444,937
27,335,488
Non-current liabilities
Provisions
18
1,722,453
1,996,725
1,722,453
1,996,725
Total liabilities
30,167,390
29,332,213
Net assets
59,569,402
53,534,585
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
2024
2023
Notes
£
£
- 13 -
Capital and reserves
Issued share capital
20
1,475,933
1,475,933
Retained earnings
58,093,469
52,058,652
Total equity
59,569,402
53,534,585

The notes and information on pages 15 to 45 form an integral part of these financial statements.

For the financial year ended 31 December 2024, the company was entitled to exemption from audit under section 47 9A of the Companies Act 2006 relating to subsidiary companies.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements were approved by the board of directors and authorised for issue on
4 September 2025
04 September 2025
and are signed on its behalf by:
T Stobbs
Director
Company registration number 02018542 (England and Wales)
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Foreign currency translation reserve
Retained earnings
Total equity
£
£
£
£
At 1 January 2023
1,475,933
859
53,098,947
54,575,739
Loss for the year
-
-
(1,014,904)
(1,014,904)
Other comprehensive expense for the year
-
-
(26,250)
(26,250)
Total comprehensive expense
-
-
(1,041,154)
(1,041,154)
Transactions with owners:
Reclassed to Retained earnings
-
(859)
859
-
At 31 December 2023
1,475,933
-
52,058,652
53,534,585
Profit for the year
-
-
6,053,567
6,053,567
Other comprehensive expense for the year
-
-
(18,750)
(18,750)
Total comprehensive income
-
-
6,034,817
6,034,817
At 31 December 2024
1,475,933
-
58,093,469
59,569,402
Share capital

The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising 1,457,933 ordinary shares of £1 each.

Retained earnings

Net profits accumulated in the Company after dividends are paid.

The notes and information on pages 15 to 45 form an integral part of these financial statements.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
1.1
Basis of preparation

Capita Property and Infrastructure 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 strategic report.

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

The financial statements are prepared in British pounds sterling, which is the functional currency of the company.

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 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 their going concern assessment, the Directors have considered the period from the date of approval of these financial statements to 31 December 2026 (‘the going concern period’) and which aligns to the period considered by the Directors of the ultimate parent company, Capita plc.

Directors' 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.

Inter-dependency with other entities in the group headed by Capita plc ('the Group')

The Directors’ assessment of going concern has considered the extent to which the Company’s ability to remain a going concern is inter-dependent with that of the Group. The Company has dependency with the Group in respect of the following:

- provision of certain services, such as administrative support services and should the Group be unable to deliver these services, the Company would have difficulty in continuing to trade;

- participation in the Group’s notional cash pooling arrangements, of which £13,911 was held at 31 July 2025. In the event of the cash being required elsewhere in the Group, the Company may not be able to access its cash balance within the pooling arrangement; and

- recovery of receivables of £64,861,579 from fellow Group companies as of 31 July 2025. If these receivables are not able to be recovered when forecast by the Company, then the Company may have difficulty in continuing to trade.

Given the inter-dependency the Company has with the Group, the Directors have considered the financial position of the ultimate parent company as disclosed in its most recent condensed consolidated financial statements, being for the six months ended 30 June 2025.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

Basis of preparation (continued)true

Ultimate parent undertaking – Capita plc

The Capita plc Board (‘the Board’) concluded that it was appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations when preparing the Group’s condensed consolidated financial statements at 30 June 2025. These condensed consolidated financial statements were approved by the Board on 4 August 2025 and are available on the Group’s website (www.capita.com/investors). Below is a summary of the position at 4 August 2025:

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 the condensed consolidated financial statements, although those standards do not specify how far beyond twelve months a Board should consider. In its going concern assessment, the Board has considered the period from the date of approval of the condensed consolidated financial statements to 31 December 2026, which aligns with the year end and covenant test date for the Group.

The base case financial forecasts used in the Group going concern assessment are derived from the 2025-2026 financial projections as approved by the Board in June 2025.

Under the base case scenario, the Group forecasts growth in revenue, profit and cash flow over the medium term. When combined with available committed facilities, this allows the Group to manage scheduled debt repayments. The most material sensitivities to the base case are the risk of not delivering the planned revenue growth and further efficiency savings being delayed or not delivered in accordance with the Group's previously announced cost reduction programme.

The base case projections used for going concern assessment purposes reflect business disposals completed up to the date of approval of the condensed consolidated financial statements. The liquidity headroom assessment in the base case projections reflects the Group’s existing committed financing facilities and debt redemptions and does not reflect any potential future refinancing. The base case financial forecasts demonstrate liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2026.

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

- • revenue growth falling materially short of plan;

- • operating margin expansion not being achieved;

- • targeted cost savings delayed or not delivered;

- • unforeseen operational issues leading to contract losses and cash outflows;

- • sustained interest rates at current levels;

- • non-availability of the Group’s non-recourse trade receivables financing facility; and

- • unexpected financial costs linked to incidents such as data breaches and/or cyber-attacks.

The likelihood of simultaneous crystallisation of the above risks is considered by the Board to be low. Nevertheless, in the event that simultaneous crystallisation were to occur, the Group would need to take action to ensure there is sufficient liquidity. In its assessment of going concern, the Board has considered the mitigations, under the direct control of the Group, that could be implemented including, but not limited to, reductions or delays in capital investment, and substantially reducing (or removing in full) bonus and incentive payments. Taking these considerations into account, the Group’s financial forecasts, in a severe but plausible downside scenario, demonstrate sufficient liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2026.

Adoption of going concern basis in the Group financial statements:

Reflecting the forecasts, coupled with the Board’s ability to implement appropriate mitigations should the severe but plausible downside materialise, the Group continued to adopt the going concern basis in preparing the condensed consolidated financial statements. The Board has concluded that the Group will be able to continue in operation and meet its liabilities as they fall due over the period to 31 December 2026.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

Conclusion

Although the Company has a reliance on the Group as detailed above, based on their enquiries with the Group’s Directors and the Company’s forecasts, even in a severe but plausible downside, the Directors are confident the Company will continue to have adequate financial resources to continue in operation and discharge its liabilities as they fall due over the period to 31 December 2026. Consequently, the financial statements have been prepared on the going concern basis.

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 ('IFRSs') and the Disclosure and the Transparency Rules of the UK's Financial Conduct Authority. They 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:

- A cash flow statement and related notes;

- Comparative period reconciliations for share capital, tangible fixed assets and intangible assets;

- Disclosures in respect of transactions with wholly owned subsidiaries;

- Disclosures in respect of capital management;

- The effects of new but not yet effective IFRSs;

- Certain disclosures as required by IFRS 15 Revenue from Contracts with Customers;

- Disclosures in respect of the compensation of key management personnel; and

- Disclosures as required by IFRS 16 Leases.

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:

- Certain disclosures required by IFRS 2 Share-based Payment in respect of Group settled share based payments;

- Certain disclosures required by IAS 36 Impairment of Assets in respect of the impairment of goodwill, indefinite life intangible assets and investment in subsidiaries; and

- Certain disclosures required by IFRS 7 Financial Instrument Disclosures and certain disclosure exemptions as permitted by IFRS 13 Fair value measurement.

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 PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Revenue

The revenue shown in the income statement represents the value of fees and services rendered, exclusive of value added tax. Revenue from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration which is recorded at the fair value of the consideration received or receivable. Revenue is recognised over-time rather than a point in time.

The Company’s preferred method of revenue recognition is the output method in which revenue is recognised based on the units of work performed and the price allocated thereto. This method is applied provided that the progress of the work performed can be measured based on the contract and during the contract’s performance. Under the output method the units of work completed under each contract are measured monthly and the corresponding output is recognised as revenue. Where it is not practicable to apply this ‘units of production’ output method the percentage of completion method is used. Under this input method cost s are recognised as incurred and revenue is recognised based on the proportion of total costs at the reporting date to the estimated total cost of the contract.

Principal and agent considerations:

Management have considered whether the Company acts as principal or agent for those contracts which involve another subcontracting party in the provision of goods or services to the customer.

An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. An entity that is a principal may satisfy its performance obligation to provide the specified good or service itself or it may engage another party (for example, a subcontractor) to satisfy some or all of the performance obligation on its behalf.

Company has autonomy to select and appoint the subcontractors who perform the construction and civils work. Company apply a margin to the subcontracted costs, and are responsible for supervising, managing and acting as site foreman on the schemes. Materially therefore Company is in control of the transaction with the subcontractor and would be considered a principal for the contract. The Company therefore recognises revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred.

Gain-share arrangements:

The Company has contracts which include gain-sharing arrangements. Company utilise the historical, current and forecast information, to determine the variable consideration for the promised services, using the expected value method permitted by IFRS 15 Revenue from Contracts with Customers.

At inception of each performance obligation, Company will include in the transaction price an amount of variable consideration estimated only to the extent that it is highly probable that a significant reversal of cumulative revenue recognised will not occur. Company recognise 75% of the gain share revenue subsequent to customer sign off and the residual 25% after payment from the customer.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Revenue (continued)

Contract fulfilment assets

Contract fulfilment costs are divided into

- costs that give rise to an asset; and

- costs that are expensed as 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: the costs directly relate to a contract or to a specifically identifiable anticipated contract; the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and the costs are expected to be recovered.

The assessment of this criteria requires the application of judgement, in particular when considering if costs generate or enhance resources to be used to satisfy future performance obligations and whether costs are expected to be recoverable. The Company regularly incurs costs to deliver its outsourcing services in a more efficient way (often referred to as ‘transformation’ costs).

These costs may include process mapping and design, system development, project management, hardware (generally in scope of the Company’s accounting policy for property, plant and equipment), software licence costs (generally in scope of the Company’s accounting policy for intangible assets), recruitment costs and training.

Capitalisation of costs to obtain a contract

The incremental costs of obtaining a contract with a customer are recognised as an 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.

Judgement is applied by the Company when determining what costs qualify to be capitalised , in particular when considering whether these costs are incremental and whether these are expected to be recoverable. For example, the Company considers which type of sales commissions are incremental to the cost of obtaining specific contracts and the point in time when the costs will be capitalised.

The Company has determined that the following costs may be capitalised as contract assets

i. legal fees to draft a contract (once the Company has been selected as a preferred supplier for a bid); and

ii. sales commissions that are directly related to winning a specific contract. Costs incurred prior to selection as preferred supplier are not capitalised but are expensed as incurred.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Revenue (continued)

Utilisation, de-recognition and impairment of contract fulfilment assets and capitalised costs to obtain a contract

The Company amortizes contract fulfilment assets and capitalised costs to obtain a contract to cost of sales over the expected contract period using a systematic basis that mirrors the pattern in which the Company transfers control of the service to the customer. Judgement is applied to determine this period, for example whether this expected period would be the contract term or a longer period such as the estimated life of the customer relationship for a particular contract if, say, renewals are expected.

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

Management is required to determine the recoverability of contract related assets within property, plant and equipment, intangible assets , 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 are removed for the impairment test.

Where the relevant contracts or specific performance obligations demonstrate marginal profitability or other indicators of impairment exist , 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 measured.

Onerous contracts

The Company reviews its long-term contracts bi-annually to ensure that the expected economic benefits to be received are in excess of the unavoidable costs of meeting the obligations under the contract. The unavoidable costs are the lower of the net costs of termination or the costs of fulfilment of the contractual obligations. The Company recognises the excess of the unavoidable costs over economic benefits due to be received as an onerous contract provision.

1.5
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 1.5 to 20 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.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.6
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:

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer equipment
3 - 5 years
1.7
Investments

The Company has investments in subsidiaries.

Investments in subsidiaries are initially recorded at cost. Subsequently they are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

At each balance sheet date, the Company assesses whether there are indicators to reverse the previously recognised impairment loss. The reversals of impairment are only recognised where there has been a change in the estimates used to determine the investment’s recoverable amount since the last impairment loss was recognised.

1.8
Impairment of tangible and intangible assets

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. 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. The recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

1.9
Financial instruments

Investments and other financial instruments

Classification

The Company classifies its financial instruments in the following measurement categories:

- those to be measured subsequently at fair value either through other comprehensive income ('FVOCI') or through profit or loss('FVPL'); and

- those to be measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -

Financial instruments (continued)

Recognition and derecognition

At initial recognition, the Company measures a financial instrument at its fair value plus, in the case of a financial instrument not at FVPL, transaction costs that are directly attributable to the acquisition of the financial instrument. Transaction costs of financial instruments carried at FVPL are expensed in the income statement.

Financial instruments with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Purchases and sales of financial instruments are recognised on their trade date (i.e., the date the Company commits to purchase or sell the instrument). Financial instruments are derecognised when the rights to receive/pay cash flows from the financial instrument have expired or have been transferred such that the Company has transferred substantially all risks and rewards of ownership.

Impairment

The Company assesses, on a forward-looking basis, the expected credit losses associated with its financial instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

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.

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.

Non-recourse trade receivables facilities

Trade receivables that are sold without recourse are derecognised at the point of sale when the risks and rewards of the receivables have been fully transferred.

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 and short-term deposits in the balance sheet comprise cash at bank and in hand.

1.10
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 PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -

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.

1.11
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 PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.12
Pensions

The Company participates in a defined contribution pension scheme where contributions are charged to the income statement in the year in which they are due. The scheme is funded and contributions are paid to a separately administered trust fund. The assets of the scheme are held separately from the Company. The Company remits monthly pension contributions to Capita Business Services Ltd, a fellow subsidiary undertaking, which pays the Group liability centrally. Any unpaid contributions at the year-end have been accrued for in the accounts of Capita Business Services Ltd.

In addition, the Company participates in a number of defined benefit pension schemes which require contributions to be made to separate trustee-administered funds.

Where the Company participates in public sector defined benefit pension schemes, this is for a finite period and there are contractual protections in place to limit the financial risks to the Company of the membership of these schemes by its employees and as such the pension costs are reported on a defined contribution basis recognising a cost equal to its contribution payable during the period (see note 21).

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 cost is recognised fully by the Principal Employer (Capita Business Services Ltd). The Company then recognises a cost equal to its contribution payable during 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 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 rates to the pensionable pay of its employees participating in the HPS.

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 two ring-fenced sections in an industry-wide pension scheme which require contributions to be made to separate trustee-administered funds. The costs of providing benefits under this scheme is determined using the projected unit credit method, which attributes entitlement to benefits to the current period (to determine current service cost) and to the current and prior periods (to determine the present value of the defined benefit obligation) and is based on actuarial advice.

Past service costs are recognised immediately in the income statement.

When a settlement (eliminating all obligations for benefits already accrued) or a curtailment (reducing future obligations as a result of a material reduction in the scheme membership or a reduction in future entitlement) occurs the obligation and related plan assets are re-measured using current actuarial assumptions and the resultant gain or loss recognised in the income statement during the period in which the settlement or curtailment occurs.

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

Pensions (continued)

Re-measurements of the net defined benefit asset/liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income and reflected immediately in retained earnings and will not be reclassified to the income statement. The Company generally determines the net interest expense/income on the net defined benefit asset/liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the period to the then net defined benefit asset/liability, taking into account any changes in the net defined benefit asset/liability during the period as a result of contributions and benefit payments. However, due consideration is made to events which require the net interest expense/income on the net defined benefit asset/liability to be re-measured over the course of the period.

Current and past service costs are charged to operating profit while the net interest cost is included within net finance costs.

The liability on the balance sheet in respect of these defined benefit pension schemes comprises the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and in the case of quoted securities is the published bid price. The Company will consider the impact of IFRIC 14 (in relation to either recognising a surplus or allowing for the impact of any funding commitments made) and will make an assessment, having regard to the rules of the pension schemes, on whether IFRIC 14 limits the surplus or increases the deficit shown at the balance sheet date.

1.13
Share based payments

The Company participates in various share option and sharesave schemes operated by Capita plc, the ultimate parent undertaking. Details of these schemes are contained in the Group's Annual report.

The fair value of the equity instrument granted is measured at grant date and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined using an option pricing model, only taking into account vesting conditions linked to the price of the shares of the Company (market conditions).

No expense is recognised for awards that do not ultimately vest as a result of not meeting performance or service conditions. Where all service and performance vesting conditions have been met, the awards are treated as vesting, irrespective of whether or not the market condition is satisfied, as market conditions have been reflected in the fair value of the equity instruments.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market conditions, the number of equity instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the consolidated income statement, with a corresponding adjustment to equity.

Where the terms of an award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period adjusted for the incremental fair value of any modification ie the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.

Where an award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the income statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over the fair value being treated as an expense in the income statement.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
1.14
Leases

The Company leases various assets, comprising land and buildings, equipment and motor vehicles.

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.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 27 -
1.15
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into British pounds 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.

Where the functional currency of branches differs from the presentational currency of the Company, the branch's results and financial position are translated by converting the assets and liabilities at the closing rate at the balance sheet date. Income and expenses recognised in the period are translated at the average rates of exchange with all resulting differences being recognised through the foreign currency translation reserve.

1.16
Group accounts

The financial statements present information about the Company as an individual company and not about its Group. The Company has not prepared Group accounts because it is fully exempt from the requirement to do so by section 400 of the Companies Act 2006 since it is a subsidiary company of Capita plc, a company incorporated in England and Wales, and is included in the consolidated financial statements of that company.

1.17
Guarantee

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within the Group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the guarantee.

1.18
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:

- Expected to be realised or intended to be sold or consumed in the normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised within twelve months after the balance sheet date; or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in the normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the balance sheet date; or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the balance sheet date.

The Company classifies all other liabilities as non-current.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
2
Significant accounting judgements, estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principles requires the D irectors 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 :

Revenue: Due to the size and complexity of some of the Company's contracts, there are significant judgements to be applied, specifically in assessing: (i) the recoverability of contract fulfilment assets; and (ii) the completeness of the customer and onerous contract provisions. These judgements are dependent on assessing the contract’s future profitability. It is possible that outcomes within the next financial year may be different from management’s assumptions and could require a material adjustment to the carrying amounts of contract assets and onerous contract provisions. It should be noted that while management must make judgements in relation to applying the revenue recognition policy and recognition of related balance sheet items (trade receivables; deferred income; and accrued income) these are not considered significant judgements.

The measurement of defined benefit obligations: the accounting cost of these benefits and the present value of pension liabilities involve judgements about uncertain events including such factors as the life expectancy of members, the salary progression of current employees, price inflation and the discount rate used to calculate the net present value of the future pension payments. The Group uses estimates for all of these factors in determining the pension costs and liabilities incorporated in the financial statements. The assumptions reflect historical experience and judgement regarding future expectations.

The Group continued to set RPI inflation in accordance with the market break-even expectations less an inflation risk premium (IRP). Market trends for the IRP have slightly increased recently and consequently a slightly higher rate of 0.30% pa has been adopted this year (2023: 0.25% pa). In isolation, the estimated impact of this change in methodology is to reduce the HPS defined benefit obligation by around £5m.

For CPI, the Group reduced the assumed difference between the RPI and CPI by 0.05% pa to an average of 0.55% pa. In isolation, the estimated impact of this change in methodology is to increase the HPS defined benefit obligation by around £1m.

The Group continues to use the Black-Scholes pricing model to derive the pension increase assumption in the context of the floors and caps. Given the recent volatility experienced by inflationary indices in the UK, the volatility parameter has increased this year to 2% pa in line with market expectations (2023: 1.5% pa). In isolation, the estimated impact of this change in methodology is to reduce the HPS defined benefit obligation by approximately a £10m.

3
Revenue

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

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
4
Operating profit/(loss)
Notes
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting)
£
£
(Income)/expense from foreign exchange differences
(77,508)
371,232
Depreciation of property, plant and equipment
8
-
4,591
Depreciation of right-of-use assets
8
54,506
370,018
Amortisation of intangible assets
9
31,001
18,584
Contract fulfilment assets - utilisation
12
249,789
145,383
Short term lease rentals
194,504
924,270
5
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in the income statement:

2024
2023
£
£
Impairment of investments in subsidiaries
-
0
9,859
-
9,859
6
Net finance income
2024
2023
£
£
Interest income
Interest receivable from Group companies
2,996,987
2,657,924
Net interest income on the net defined pension schemes
20,000
20,000
3,016,987
2,677,924
Interest expense
Interest expense on bank overdrafts and loans
(136,530)
(24,555)
Interest expense on lease liabilities
(229)
(10,969)
Interest expense on non-recourse trade receivables facility
(176,253)
(213,841)
(313,012)
(249,365)
Total net finance income
2,703,975
2,428,559
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
7
Income tax
The major components of income tax charge/(credit) are:
2024
2023
£
£
Current tax
UK corporation tax
2,041,241
(155,237)
Adjustments in respect of prior periods
(34,605)
124,245
2,006,636
(30,992)
Deferred tax
Origination and reversal of temporary differences
(839)
(78,884)
Adjustment in respect of prior periods
(6,856)
22,645
(7,695)
(56,239)
Total tax charge/(credit)
1,998,941
(87,231)
2024
2023
Statement of comprehensive income
£
£
Tax movements in relation to actuarial loss on defined benefit plans
Deferred income tax
Origination and reversal of temporary differences
(6,250)
(8,750)
Total tax credit reported in other comprehensive income statement
(6,250)
(8,750)
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Income tax
(Continued)
- 31 -

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
£
£
Profit/(loss) before taxation
8,052,508
(1,102,135)
Expected tax charge/(credit) based on the weighted average Corporation Tax rate of 25.00% (2023: 23.52%)
2,013,127
(259,228)
Expenses not deductible for tax purpose
27,275
26,558
Non-taxable income
-
0
(5,015)
Adjustment in respect of current income tax of prior periods
(41,461)
146,890
Adjustment in respect of deferred tax of prior periods
-
0
8,232
Impact of changes in statutory tax rates
-
(4,668)
Total adjustments
(14,186)
171,997
Total tax charge/(credit) reported in the income statement
1,998,941
(87,231)
Balance sheet
Income statement
2024
2023
2024
2023
£
£
£
£
Deferred tax assets
Decelerated capital allowances
1,390,687
1,384,241
(6,446)
(26,346)
Tax losses
3,818,396
3,818,396
-
0
-
0
Other short term timing differences
4,540
4,540
-
0
31,374
Pension scheme
(36,234)
(43,733)
(1,249)
(61,267)
Deferred tax assets
5,177,389
5,163,444
Deferred tax credit to income statement
(7,695)
(56,239)
Actuarial differences recognised as other comprehensive income
(6,250)
(8,750)
Total deferred tax movement in the period
(13,945)
(64,989)

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 the 25% rate.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
8
Right-of-use assets
Land and buildings
£
Net book value at 1 January 2024
54,506
Depreciation charge
(54,506)
Net book value at 31 December 2024
-
0

9
Intangible assets
Capitalised software development
£
Cost
At 1 January 2024
93,003
At 31 December 2024
93,003
Amortisation and impairment
At 1 January 2024
18,584
Charge for the year
31,001
At 31 December 2024
49,585
Net book value
At 31 December 2024
43,418
At 31 December 2023
74,419
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
10
Investments
Subsidiaries
£
Cost
At 1 January 2024 & 31 December 2024
9,398,464
Impairment
At 1 January 2024 & 31 December 2024
234,701
Net book value
At 31 December 2024
9,163,763
At 31 December 2023
9,163,763
11
List of Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of company
Address
Class of
% Held
shares held
Direct
Indirect
Capita Property and Infrastructure (Structures) Limited
1
Ordinary
100.00
-
Capita Symonds Saudi Arabia Limited
2
Ordinary
50.00
-
Capita Property and Infrastructure Consultants LLC - in liquidation
3
Ordinary
49.00
-
Capita Symonds Limited (Libya Branch)
4
Ordinary
100.00
-
Capita Norman + Dawbarn Limited - in liquidation
5
Ordinary
97.30
-
Capita Property and Infrastructure International Holdings Limited
1
Ordinary
100.00
-
Capita Property and Infrastructure International Limited
1
Ordinary
-
100.00
Woolf Limited
1
Ordinary
-
100.00

Registered office addresses:

1
First Floor, 2 Kingdom Street, Paddington, London, England, W2 6BD
2
King Abdul Aziz Street, PO Box 7052, Dammam, Saudi Arabia.
3
1004 Bin Hamoodah Building, Khalifa St., PO Box 113 740, Abu Dhabi, United Arab Emirates.
4
Sough Thalat Buildings 5, Apartment 2, Tripoli, Libya.
5
10th Floor, UBA House, No 57, Marina Street, Lagos Island, Lagos.
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
12
Contract fulfilment assets
£
At 1 January 2023
378,017
Additions
38,089
Utilised during the year
(145,383)
At 31 December 2023
270,723
Utilised during the year
(249,789)
At 31 December 2024
20,934

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.

13
Trade and other receivables
Current
2024
2023
£
£
Trade receivables
3,652,284
2,785,921
Amounts due from Group companies
67,731,183
59,539,435
Other receivables
23,880
23,877
Accrued income
3,439,492
4,127,286
Prepayments
71,704
407,723
74,918,543
66,884,242
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Trade and other receivables
(Continued)
- 35 -
Non-current
2024
2023
£
£
Prepayments
-
0
4,929
-
4,929

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

14
Cash and cash equivalents
2024
2023
£
£
Cash at bank and in hand
-
0
840,772
-
0
840,772
15
Financial liabilities
Current
2024
2023
£
£
Bank overdrafts
1,587,455
-
0
1,587,455
-
0
16
Trade and other payables
Current
2024
2023
£
£
Trade payables
3,570,080
3,978,077
Amount due to Group companies
8,079,757
4,199,062
Accruals
1,409,359
3,661,463
Other taxes and social security
608,917
1,492,008
Other payables
432,999
642,784
14,101,112
13,973,394

Amounts due to Group companies are non-interest bearing and repayable on demand.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
17
Lease liabilities
2024
2023
£
£
Current liabilities
-
0
62,648
2024
2023
Amounts recognised in the income statement include the following:
£
£
Interest on lease liabilities
229
10,969

The total cash outflow for leases was £63,106 (2023: £377,498) consisting of interest paid of £229 (2023: £10,969) and capital element of £62,877 (2023: £366,529).

2024
2023
Maturity analysis - contractual undiscounted cash flows
£
£
Less than one year
-
0
62,877
Total undiscounted liabilities at 31 December
-
62,877
18
Provisions
2024
2023
£
£
Current
5,194,659
7,878,181
Non-current
1,722,453
1,996,725
6,917,112
9,874,906
Property
Claims
Others
Total
£
£
£
£
At 1 January 2024
197,022
7,184,221
2,493,662
9,874,905
Provisions in the year
412,500
36,483
12,318
461,301
Releases in the year
(64,175)
(1,751,258)
-
0
(1,815,433)
Utilisation
(132,847)
(896,225)
(574,589)
(1,603,661)
At 31 December 2024
412,500
4,573,221
1,931,391
6,917,112
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Provisions
(Continued)
- 37 -

Claims represents professional indemnity provisions. The Directors make professional indemnity/litigation provisions for potential claims against the Company where appropriate. These may be established when internal controls identify potential issues or external notification of intent to make a claim is received.

The property provision represents dilapidation provisions. The Company is required to perform repairs on leased properties prior to the properties being vacated at the end of their lease term. Dilapidation provisions for such costs are where a legal obligation is identified and the liability can be reasonably quantified.

Other provisions includes restructuring provisions which is in respect of the major restructuring activities undertaken by the Group and related to business exit costs.

19
Deferred income
2024
2023
£
£
Current
Deferred income
5,342,502
5,198,850
5,342,502
5,198,850
20
Share capital
2024
2023
2024
2023
Number
Number
£
£
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January and 31 December
1,457,933
1,457,933
1,475,933
1,475,933
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
21
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 £1,236,669 (2023: £1,226,588). The pension charge excludes pension contributions paid by the Company on behalf of employees via a salary sacrifice arrangement.

The Company has current and former employees who are members of: a number of public sector defined benefit pension schemes; the Group’s main defined benefit pension scheme ('HPS'); and two sections of the Industry-Wide Coal Staff Superannuation Scheme - Capita Symonds HQ Employer Fund ('IWCSSS (HQ)') and Capita Symonds On site Employer Fund ('IWCSSS (OS)') – also a defined benefit pension scheme.

Public sector defined benefit pension schemes

Where the Company participates in public sector defined benefit pension schemes, this is for a finite period and there are contractual protections in place allowing actuarial and investment risk to be passed on to the end customer via recoveries for contributions paid. The nature of these arrangements vary from contract to contract but typically allows for the majority of contributions payable to the schemes in excess of an initial rate agreed at the inception to be recovered from the end customer, as well as exit payments payable to the schemes at the cessation of the contract (where applicable), such that the Company’s net exposure to actuarial and investment risk is immaterial. Therefore the costs in relation to all of the above schemes are reported on a defined contribution basis recognising a cost equal to its contribution payable during the period. No amounts are recognised on the Company’s balance sheet.

The pension charge for these public sector defined benefit pension schemes is included in the above pension charge for the defined contribution pension schemes.

The Group's main defined benefit pension scheme

The Company has current and former 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.

The pension charge for the Company in relation to the HPS for the year was £281,026 (2023: £290,130).

The HPS is a non-segregated scheme with around 200 different sections in the scheme where each section provides benefits on a particular basis (some based on final salary, some based on career average earnings) to particular groups of employees. Responsibility for the operation and governance of the scheme lies with a Trustee Board (the CPLAS Trustees Limited) which is independent of the Company. The Trustee Board is required by law to act in the interest of the scheme’s beneficiaries in accordance with the rules of the scheme and relevant legislation (which includes the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004). The nature of the relationship between the Company and the Trustee Board is also governed by the rules of the scheme and relevant legislation.

The assets of the scheme are held in a separate fund (administered by the Trustee Board) to meet long-term pension liabilities to beneficiaries. The Trustee Board invest the assets in accordance with their Statement of Investment Principles, which is regularly reviewed.

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. 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 undertaking). 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%).

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Employee benefits
(Continued)
- 39 -

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 committed* 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.

*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 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: 3.00% 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 paid over the period.

IWCSSS (HQ) and IWCSSS (OS)

Responsibility for the operation and governance of the sections lies with the Industry-Wide Coal Staff Superannuation Scheme Trustees Limited ('IWCSSSTL') which is independent of the Company. The IWCSSSTL is required by law to act in the interest of the section’s beneficiaries in accordance with the rules of the Industry-Wide Coal Staff Superannuation Scheme ('Scheme') and relevant legislation (which includes the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004). The nature of the relationship between the Company and the IWCSSSTL is also governed by the rules of the Scheme and relevant legislation.

The assets of the sections are held in a separate fund (administered by the IWCSSSTL) to meet long-term pension liabilities to beneficiaries. The IWCSSSTL invest the assets in accordance with their Statement of Investment Principles, which is regularly reviewed.

The most recent full actuarial valuation of the sections was carried out as at 31 December 2021. For IWCSSS (HQ) it showed a funding surplus of £176,000 (funding level of 112%) and for IWCSSS (OS) it showed a funding deficit of £28,000 (funding level of 96%). Based on the results of this actuarial valuation, the Company is not expected to make any contributions to IWCSSS (HQ) during 2025. However, it is expected to contribute £45,000 to IWCSSS (OS) during 2025. The next full actuarial valuation as at 31 December 2024 is currently in progress.

CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Employee benefits
(Continued)
- 40 -

For the purpose of the consolidated accounts of Capita plc, a qualified actuary projected the results of the 31 December 2021 valuation to 31 December 2024. For the purposes of IFRIC 14, a net pension asset is deemed to be recoverable because the Company has the right to a future refund in the event the scheme is wound-up and there remains a surplus.

The pension charge for the sections for the year was £20,000 (2023: £20,000).

IWCSSS (HQ) and IWCSSS (OS)
Defined benefit plan
2024
2023
Key assumptions
%
%
Discount rate
5.50
4.55
Pension growth rate (RPI)
3.10
3.05
Salary growth rate
3.10
3.05
2024
2023
Mortality assumptions
Years
Years
Assumed life expectations on retirement at age 65:
-Males
21.90
21.90
-Females
24.00
23.90
Member currently aged 45 (life expectancy at 65)
-Males
22.60
22.60
-Females
25.30
25.20
Amounts recognised in income statement in respect of defined benefit plans are as follows:
2024
2023
£
£
Administration cost
40,000
40,000
Net interest on defined benefit liability
(20,000)
(20,000)
20,000
20,000
Amounts recognised in other comprehensive income in respect of defined benefit plans are as follows:
2024
2023
£
£
Actuarial changes arising from changes in demographic assumptions
-
(25,000)
Actuarial changes arising from changes in financial assumptions
(120,000)
15,000
Actuarial changes arising from experience
5,000
20,000
Actuarial changes related to plan assets
140,000
25,000
Total actuarial (gain)/loss
25,000
35,000
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Employee benefits
(Continued)
- 41 -
The amounts included in the balance sheet arising from the Company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Present value of defined benefit obligations
920,000
1,040,000
Fair value of plan assets
(1,300,000)
(1,450,000)
Deficit/(surplus) in scheme
(380,000)
(410,000)
Movement in the present value of defined benefit obligations are as follows:
2024
2023
£
£
At 1 January
1,040,000
1,035,000
Current service cost
-
-
Administration cost
40,000
40,000
Benefits paid
(90,000)
(95,000)
Actuarial gains and losses
(115,000)
10,000
Interest cost
45,000
50,000
At 31 December
920,000
1,040,000
The defined benefit obligations arise from plan funded as follows:
2024
2023
£
£
Wholly or partly funded obligations
920,000
1,040,000
At 31 December
920,000
1,040,000
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Employee benefits
(Continued)
- 42 -
Movement in the fair value of plan assets are as follows:
2024
2023
£
£
At 1 January
1,450,000
1,490,000
Interest income
65,000
70,000
Return on plan assets (excluding amounts included in net interest)
(140,000)
(25,000)
Employer contributions
15,000
10,000
Benefits paid
(90,000)
(95,000)
At 31 December
1,300,000
1,450,000
The actual return on plan assets was (£75,000) (2023: £45,000).
Sensitivity of the defined benefit obligations to changes in assumptions
2024
2023
£
£
0.5% p.a. decrease in discount rate
990,000
1,120,000
0.5% p.a. increase in salary growth rate
920,000
1,040,000
0.5% p.a. increase in inflation rate
990,000
1,110,000
One year increase in life expectancy
950,000
1,070,000
The fair value of plan assets at the reporting period end was as follows:
Quoted
Unquoted
Quoted
Unquoted
2024
2024
2023
2023
£
£
£
£
Equity instruments
-
-
-
-
Debt instruments
835,000
-
1,190,000
-
Property
160,000
-
150,000
-
Infrastructure
-
-
-
-
Multi-asset credit fund
-
-
-
-
Cash and other
305,000
-
110,000
-
Total
1,300,000
-
1,450,000
-
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Employee benefits
(Continued)
- 43 -

Risks associated with the Company’s pension schemes

The HPS, IWCSSS (HQ) and IWCSSS (OS) expose the Company to various risks, with the key risks set out below:

Investment risk: If the invested assets under-perform the returns assumed in setting the funding target then additional contributions may be required at subsequent valuation dates for each of these schemes.

Interest rate risk: the discount rate is derived from yields available on good quality corporate bonds of suitable duration. If these yields decrease, then in isolation, this would increase the value placed on the defined benefit obligation and result in a worsening of the funding position of the schemes.

Inflation risk: the obligations of the schemes are linked to future levels of inflation. If future inflation is higher than expected then this would result in the cost of providing the benefits increasing and thereby worsening the funding position of the schemes.

Longevity risk: if members live longer than expected, then pensions will be paid for a longer time which will increase the value placed on the obligations and therefore worsen the funding position of the schemes.

To manage these risks, the Company and the trustees carry out regular assessments of these risks. Refer to the full disclosures available in the consolidated financial statements of Capita plc for further information.

22
Employees

The average monthly number of employees (including non-executive D irectors) w ere:

2024
2023
Number
Number
Administration
11
15
Operations
374
459
Total
385
474

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
15,422,089
18,356,342
Social security costs
1,666,506
2,014,915
Pension costs
1,517,695
1,516,718
18,606,290
21,887,975

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 PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 44 -
23
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
104,313
187,158
Company pension contributions to defined contribution schemes
4,106
5,842
108,419
193,000

One Director, who provided qualifying services on the Company’s affairs, was paid by another entity within Capita Group, and no remuneration has not been allocated to the Company but is disclosed above. The other Directors have not provided qualifying services to the Company and are paid by the other Companies within the Capita Group. In addition, the Directors of the Company were 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 1 (20 23 - 1).

24
Related party transactions
The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:
Name of company
Year
Amount
£
Purchase of good/services
Entrust Support Services Limited
2024
4,787
2023
-
RE (Regional Enterprise) Limited
2024
60,563
2023
-
Total
2024
65,350
Total
2023
-
Sale of goods/services
Entrust Support Services Limited
2024
2,336
2023
38,156
RE (Regional Enterprise) Limited
2024
218,371
2023
-
Total
2024
220,707
Total
2023
38,156
CAPITA PROPERTY AND INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Related party transactions
(Continued)
- 45 -
Closing balances- Trade receivables
Urban Vision Partnership Limited
2024
-
2023
-
RE (Regional Enterprise) Limited
2024
-
2023
-
Total
2024
-
Total
2023
-
25
Controlling party

The C ompany's immediate parent undertaking is Capita Business Services Ltd, a c ompany incorporated in England and Wales.

The C ompany's ultimate parent undertaking is Capita plc, a company incorporated in England and Wales. The consolidated financial statements of Capita plc are available from the registered office at First Floor, 2 Kingdom Street, Paddington, London, England, W2 6BD.

26
Post balance sheet date events

There are no significant post balance sheet events.

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