Half year results for the 6 months to 30 June 2017               

    Creating a simpler business well positioned for the future

    Financial highlights Underlying1  Underlying1    YOY     Reported   Reported    Reported  
    - continuing             2017        2016       change      2017       2016    YOY change 
    operations                                                                                
                                                                                              
    Revenue                £2,066m      £2,131m        (3 %)  £2,127m    £2,156m         (1 %)
                                                                                              
    Operating profit        £228m        £166m        +38 %     £63m       £87m         (28 %)
                                                                                              
    Profit before tax       £195m        £134m        +46 %     £28m       £37m         (26 %)
                                                                                              
    Earnings/(loss) per     22.92p      16.12p        +42 %   (0.11)p     4.66p        (102 %)
    share                                                                                     
                                                                                              
    Interim dividend per    11.1p        11.1p          -      11.1p      11.1p           -   
    share                                                                                     
                                                                                              
    Free cash flow          £179m        £214m        (16 %)   £182m      £199m          (9 %)

    Highlights

    Strategic initiatives: re-positioning going to plan

    • Disposal of our Asset Services businesses for £888m to Link Group, expected
    to complete in Q4 2017

    • Completed disposal of transactional specialist recruitment businesses

    • Cost initiatives on track to realise around £57m savings by the end of 2018

    • Implemented new simplified market facing organisation structure.

    2017 H1 financial summary: trading broadly in line with expectations

    • Early adopted IFRS 15 from 1 January 2017 on a fully retrospective basis

    • Underlying revenue declined by 3%. Growth on a like for like basis1 was 1%
    including 0.5% organic decline

    • Underlying profit before tax1 up 46% to £195m (H1 2016: £134m)

    • Underlying earnings per share1 up 42% to 22.92p (H1 2016: 16.12p)

    • Maintained interim dividend of 11.1p (H1 2016: 11.1p)

    • Free cash flow before non-underlying items1 £179m (H1 2016: £214m) and after
    non-underlying items £182m (H1 2016: £199m)

    • Net debt at end June 2017 of £1,596m (H1 2016 £1,901m)

    • Reported profit before tax £28m (H1 2016: £37m)

    • Reported loss per share (0.11)p (H1 2016: 4.66p).

    Major sales: win rate improved in quiet market

    • £403m of major contract wins (H1 2016: £879m)

    • Major contract win rate 1 in 2 (2016: 1 in 3)

    • Bid pipeline £3.1bn (March 2017: £3.8bn), with a weighted average contract
    length of 5.5 years (March 2017: 7 years). Annual value of bids maintained.

    Outlook

    • Underlying pre-tax profits before significant new contracts and restructuring
    to rise modestly in the second half, compared to the first half of 2017

    • Leverage at the end of 2017 around the bottom of our 2.0 to 2.5 times range,
    prior to the impact of IFRS 15 and potential unwind of receivables financing

    • We remain confident that the actions we commenced last year are making Capita
    a simpler business, well positioned for the future under new leadership.

    Nick Greatorex of Capita plc, commented:

    "In the first half of 2017, we made good progress on executing the plans laid
    out at the end of last year to reposition the Group: we announced the sale of
    our Asset Services businesses, completed the disposal of our specialist
    recruitment business and commenced a number of cost initiatives. We remain
    confident that these actions are making Capita a simpler business, well
    positioned for the future under new leadership."

    1 Refer to appendix 1 for calculation of Alternative Performance Measures. Capita    
      Asset Services has been treated as a discontinued operation.                       

    __________________________________________________________________________________________

    Analyst & investor presentation:

    Ian Powell Chairman and Nick Greatorex Interim CEO and Group Finance Director
    of Capita plc will host a presentation of our results in London at 08:30 UK
    time today.

    There will also be a live video webcast and a telephone dial-in facility of the
    presentation on the day, at 08.30am UK time, with an on-demand version
    available on our website www.capita.com/investors later that day.

    Please find the webcast link and dial-in details below:

    Webcast link

    http://www.investis-live.com/capita/594d0292e8adb21200ac6f59/hsre

    To register for the webcast please paste the link above into your browser and
    follow the on-screen instructions.

    Telephone dial-in:

    Location you are dialling from:    Number to dial:

    United Kingdom                         020 3059 8125

    All other locations                      + 44 20 3059 8125

    Participant password: Capita - this must be quoted to the Operator in order for
    participants to gain access to the conference.

    _____________________________________________________________________________________

    For further information:

    Capita plc
    Tel: 020 7799 1525
    Shona Nichols, Executive Director, Communications
    Andrew Ripper, Head of Investor Relations

    Media enquiries

    Powerscourt Tel: 020 7250 1446
    capita@powerscourt-group.com
    Victoria Palmer-Moore and Andy Jones


    This announcement contains inside information.

    About Capita

    Capita is a leading UK provider of technology enabled customer and business
    process services and integrated professional support services. With 73,000
    people at over 500 sites, including 94 business centres across the UK, Europe,
    India and South Africa, Capita uses its expertise, infrastructure and scale
    benefits to transform its clients' services, driving down costs and adding
    value. Capita is quoted on the London Stock Exchange (CPI.L). Further
    information on Capita can be found at: http://www.capita.com.

                       Results for the 6 months to 30 June 2017                    

    Overview

    Capita has early adopted IFRS 15, the new revenue recognition standard, and is
    reporting its performance in 2017 against the comparative period in 2016 under
    this new standard.

    Trading was broadly in line with our expectations in the first half of 2017.
    The turn-around of our IT Services division progressed better than expected,
    following restructuring of the management team and operating model, but we
    continued to be impacted by weakness in a number of discretionary services. We
    improved our major contract win rate in a relatively subdued business process
    management market in the public sector.

    Capita made good progress in the first half of 2017 on executing the plans laid
    out at the end of last year to reposition the Group. We announced the disposal
    of our Asset Services businesses for £888m to Link Group, which is expected to
    complete in Q4 2017 following regulatory approvals, completed the disposal of
    our transactional specialist recruitment businesses, implemented our new
    organisation structure and progressed a number of cost initiatives.

    These actions increase the Group's focus upon technology-enabled Business
    Process Management, reduce leverage and leave us better placed to return to
    sustainable growth over the course of 2018 and beyond.

    Financial review

    IFRS 15 Revenue from Contracts with Customers

    We have adopted IFRS 15 fully retrospectively from 1 January 2017 to provide
    investors with clarity on the impact of the new accounting standard in what is
    a transitional year for the Group. IFRS 15 gives rise to changes in the timing
    of revenue and cost recognition, better aligning Capita's financial results
    with the delivery of its high value complex solutions to clients.

    IFRS 15 will not impact upon the lifetime profitability of contracts, the cash
    flow of contracts or the majority of our transactional businesses. The main
    changes for Capita from the adoption of IFRS 15 are on its long term contracts
    and software businesses, in particular:

    • Revenue is more evenly phased over the life of contracts and active software
    licences in line with the delivery of outcomes to clients and, consequently,
    the timing of profits is re-profiled.

    • Capita will potentially recognise lower profits or losses in the early years
    of contracts where there are significant upfront restructuring costs or higher
    operating costs prior to transformation, with a compensating increase in
    profits in later years. The total net impact at Group level is a function of
    the balance of contracts in early or late stage of their life cycle at
    transition to IFRS 15 and in subsequent years. As a result contract profits,
    and in certain cases contract losses, are now reported in the comparative
    periods.

    • The Group's balance sheet includes:

    - new "contract fulfilment assets" created in the process of transforming
    services; and

    - an increased level of deferred income in relation to contracts where payments
    have been received from clients to undertake transformation prior to the
    planned outcomes being delivered. The majority of deferred income will unwind
    within the following 12 months and is expected to be replaced by similar
    advanced payments subject to additions or changes to the Group's contract
    portfolio.

    Major contracts performance

    We have concluded discussions with the Ministry of Defence in relation to the
    Defence Infrastructure Organisation ('DIO'), which is now expected to end in
    2019. The H1 2017 results include a £16m benefit from the re-shaping of the DIO
    contract which is not expected to recur in 2018. We are currently not expecting
    to recognise the benefit of any gain share up to the contract modification date
    in the second half of 2017. For the remaining two years, we will focus on
    supporting the DIO in achieving its goal of being able to operate effectively
    in a delegated environment.

    Service delivery across our NHS Primary Care Support England ('PCSE) contract
    has continued to improve but we are still addressing a number of challenges. We
    are continuing to invest in completing the transformation of this service prior
    to an inflection point in profitability being achieved. As previously
    announced, the cash cost of these continuing improvements has been and will
    remain high for the remainder of 2017.

    We are still in discussion with a major life and pensions client which may lead
    to the continuation of the contract with amended terms or a termination of the
    contract. Subject to the outcome of this discussion, we will review the
    carrying value of assets related to the contract and may incur associated
    costs.

    Revenue

    Reported revenue decreased by 1% to £2,127m (H1 2016 £2,156m) and underlying
    revenue1 decreased by 3% to £2,066m (H1 2016: £2,131m). Underlying revenue on a
    like for like basis1, excluding results from businesses exited and assets held
    for sale in both years, increased by 1% including 0.5% organic decline and 1.5%
    growth from acquisitions. Revenue benefited from new contracts with Tesco
    Mobile and mobilcom-debital, continued expansion of Department for Work and
    Pensions (DWP) PIP assessments, an increase in BBC TV Licencing revenue after
    contract modification and improved performances in network solutions and our
    other IT businesses. This was offset by attrition from the loss of part of our
    Civil Service Learning contract and weakness in real estate and central
    government services. Our revenue mix in H1 2017 was 71% long term contractual,
    16% short term contractual and 13% transactional.

    Cost initiatives

    We have commenced a number of short and long term cost initiatives, including
    reductions in overheads, the offshoring of some IT applications support,
    centralising more of our procurement and rationalising our property estate, to
    further increase the efficiency of the Group. The net benefit from these
    actions is still expected to be around £57m by the end of 2018, albeit with
    slightly less benefit than originally anticipated being realised in the current
    year.

    Underlying operating profit

    Underlying operating profit1 increased by 38% to £228.4m (H1 2016: £166.0m).
    Profit rose as a result of a significant improvement in the performance of our
    IT Services division and higher profits from a number of major contracts which
    either reached post transformation inflection points or were renegotiated. This
    was partially offset by an increase in central costs, reflecting a re-phasing
    of incentive schemes and higher professional fees, and a decline in profits in
    the Digital & Software Solutions division.

    Divisional performance

    We have modified our segmental reporting to align it with our management view
    of divisional performance.  This includes allocating only direct overheads,
    such as payroll administration, pension and insurance costs, to the divisions,
    and showing central costs separately. The impact of IFRS 15 is to re-profile
    the timing of revenue and costs, which is reflected in the discussion of
    divisional performance below:

    Private Sector Partnerships - underlying revenue increased by 6%, driven by
    growth in Capita Europe and an increase in BBC TV Licencing. Profitability
    improved due to the dropping out of one-off contract modifications in the prior
    year and the renegotiation of our Co-operative Bank contract, partially offset
    by lower contributions from remediation services and employee solutions.

    Public Services Partnerships - underlying revenue fell by 6% due to weakness in
    central government services and real estate, which is not recovering as quickly
    as expected. Underlying profits increased as a result of TfL, which went live
    in H2 2016, the aforementioned re-shaping of DIO, lower costs on PCSE and a
    good performance from our DWP PIP contract.

    Professional Services - underlying revenue fell by 29% as a result of the
    disposal of specialist recruitment. Underlying revenue on a like for like basis
    fell by 4% due to the loss of part of our Civil Service Learning contract,
    which was partially offset by growth in the Army Recruiting Partnering Project
    (RPP). Underlying profits increased due to costs reducing on RPP and growth in
    Fera and some of our trading businesses.

    Digital & Software Solutions - underlying revenue fell by 1% and underlying
    profits fell by 13%, as a result of two major long-term active software
    licences ending in H2 2016. We are making good progress on the offshoring of
    development work to enhance capability and efficiency.

    IT Services - underlying revenue increased by 14% due to the acquisitions of
    Trustmarque and Acutest and increased volumes in network solutions. Underlying
    profits doubled, following our restructuring of the business in the second half
    of 2016.

    Underlying operating margin

    Underlying operating margin1 was 11.1% (H1 2016: 7.8%).

    Underlying net finance costs

    The underlying net interest charge1 was £33.4m (H1 2016: £32.3m). Capita
    terminated its higher coupon fixed rate interest rate swaps in the first half
    and we now expect underlying interest costs to be in the range of £65m to £70m
    in the full year to December 2017, subject to the timing of the completion of
    disposals.

    Profit before tax

    Underlying profit before tax1 increased by 46% to £195.0m (H1 2016: £133.7m).
    Reported profit before tax1 was £27.6m (H1 2016: £37.2m), reflecting the impact
    of business exits and specific charges detailed in notes 5 and 7 of this
    statement.

    Discontinued operations

    The results above exclude Capita Asset Services, which was treated as a
    discontinued operation, as detailed in note 6 of this statement.

    Earnings per share

    Underlying earnings per share1 for continuing operations rose by 42% to 22.9p
    (H1 2016: 16.1p). Our underlying tax rate was 18.5% (H1 2016: 15.7%) and we
    expect our underlying tax rate to be around 19% in the full year to December
    2017. Reported loss per share1 for total operations was (0.11)p (H1 2016:
    4.66p).

    Dividend

    The Board is recommending an interim dividend of 11.1p per ordinary share (H1
    2016: 11.1p). The interim dividend will be payable on 30 November 2017 to
    shareholders on the register at the close of business on 20 October 2017.

    Cash flow

    Free cash flow1 before non-underlying expenses was £179.2m (H1 2016: £213.8m)
    and free cash flow1 after non-underlying expenses was £182.0m (H1 2016: £
    199.2m). Net capital expenditure was £50m (H1 2016: £80m) and we expect capital
    expenditure in the full year to be slightly lower than 2016.

    Balance sheet and net debt

    Net liabilities at end June 2017 were £668.3m (H1 2016: £552.9m). This includes
    significant deferred income balances recognised on the adoption of IFRS 15, as
    explained in Appendix 2.

    Net debt at end June 2017 was £1,596m (H1 2016: £1,901m). This included £1,568m
    outstanding private placement bond debt, of which £90.3m matures in the next 12
    months and the remainder at various maturities to 2027. In addition, we have £
    620m of bank debt which matures in 2018 and 2019, and an undrawn £600m
    revolving credit facility of which £81m matures in August 2020 and £519m in
    August 2021.

    At 30 June 2017, our net debt to annualised EBITDA1 ratio was 2.9 and
    annualised interest cover1 was 7.8 times. Following the receipt of proceeds
    from the disposal of our Asset Services businesses and expected cash flow in
    the second half of the year, we expect leverage to fall to around the bottom of
    our 2.0 to 2.5 times range at the end of 2017. Subject to the completion of
    this disposal, we may choose to unwind our receivables financing which was a
    balance of £120m at 30 June 2017 and, in conjunction with the impact of IFRS 15
    upon contingent obligations under bonds and guarantees, this may result in
    leverage being around the middle of our range.

    Return on capital employed

    Our post-tax return on average capital employed in the first half of 2017 was
    15.2% (FY 2016: 12.9%).

    Pension

    Capita's pension deficit increased to £381m at 30 June 2017 (FY 2016: £345m),
    reflecting a decrease in the discount rate. The latest triennial valuation
    commenced in April 2017. We continue to expect a £12m increase in the IAS 19
    pension charge this year and an increase in cash contributions from June 2018.

    Capita has consulted with affected parties and their representatives concerning
    its decision to close to future accrual the Group defined benefit scheme. The
    defined benefit scheme will be replaced by a defined contribution scheme for
    the affected employees. We will provide a further update on our plans to close
    the financial deficit in due course, once we have reached agreement with the
    scheme's trustees.

    Connaught

    This is an update on the potential costs in resolving matters relating to the
    Connaught Income Series 1 Fund ("The Fund"), of which Capita Financial Managers
    Limited ("CFM") was the Operator until September 2009, when it was replaced by
    an unrelated company as Operator, following which CFM had no further
    involvement with the Fund. The Fund went into liquidation in 2012 and its
    liquidator brought a claim against both former Operators, which for its part,
    the Group settled in 2016 for a sum of £18.5m.

    The Financial Conduct Authority's (FCA) formal review of the activities of both
    operators is ongoing.  The FCA has recently indicated to the Company that it is
    minded to seek a financial penalty against CFM in connection with its conduct
    as operator of the Fund and to seek redress for the substantial losses incurred
    by all investors when the Fund collapsed three years after CFM's involvement,
    notwithstanding the amount settled during 2016.

    The Company is continuing discussions with the FCA in relation to its findings
    in respect of CFM's conduct and the associated potential financial penalty. 
    While these discussions with the FCA take place, provision at this time has
    been made for the full potential amount of the financial penalty and associated
    legal costs (£37m). The Company has taken a prudent approach to this provision
    reflecting the early stages of our discussions with the FCA and the lack of
    clarity on the basis supporting the FCA's position.

    In respect of the redress the Board does not consider that the Company is
    liable to pay further sums in addition to the amounts already paid in respect
    of the settled claims and therefore no provision has been made at this
    time. Based on the information available to date it is not possible at this
    stage to determine what the ultimate outcome of the FCA review might be.

    1 Refer to appendix for calculation of Alternative Performance Measures. Capita      
      Asset Services has been treated as a discontinued operation.                       

    Major sales and business development

    Our Group Business Development team work on major transformation contracts,
    which are reported in our sales bid pipeline, and campaigns of replicable
    solutions, such as in local government. They also engage with divisional sales
    teams to enhance their capability and sales performance.

    Capita has secured major contracts with an aggregate total value of £403m in
    the year to date (H1 2016 £879m), comprised of 27% new contracts and 73%
    renewals and extensions. Our win rate increased to 1 in 2 by value. The market
    for major transformation contracts has remained subdued in the public sector to
    date in 2017.

    We secured a new contract to deliver apprenticeship services to the Civil
    Service. Extensions were secured to our Personal Independence Payments contract
    with the Department for Communities, Northern Ireland until end July 2019 and
    our IT services contract with the Northern Ireland Education Authority to March
    2019. The London Borough of Lambeth intends to extend our revenue, benefits and
    customer services contract until 2026. We have also renewed our RSPCA customer
    management contract, Royal London life and pensions contracts and mortgage
    administration contract with Tesco Bank.

    In addition to the above, we have also secured £45m of new local government
    campaign wins in the year to date.

    We are continuing with our period of exclusive engagement with British Airways
    to explore forming a potential partnership to support its global customer
    contact operations, which currently handles approximately 9.5 million calls per
    annum.

    Bid pipeline

    Our bid pipeline shows the total contract value of our major sales bids at a
    specific point in time. It contains all bids with total contracted revenue
    worth between £25m and a capped ceiling of £1bn, where we have been
    short-listed to the last 4 or fewer. The total contract value of the bid
    pipeline currently stands at £3.1bn (March 2017: £3.8bn), comprised of 28 bids
    including 79% new business and 21% renewals and extensions. The weighted
    average contract length of bids in the pipeline is 5.5 years (March 2017: 7
    years) and the annual value of the bid pipeline has been maintained. We expect
    decisions on the majority of bids within the next 12 months and continue to
    have a large, active prospect list of opportunities behind the pipeline.

    Rebids

    There are no material contracts, defined as being in excess of 1% of Group
    revenue, up for rebid in 2017 and 2018. Our next major contract renewal is the
    Department for Work & Pensions Personal Independence Payments contract in mid
    2019.

    Disposals and acquisitions

    In June, we announced the sale of our Asset Services businesses to Link
    Administration Holdings ("Link Group") for a cash free, debt free consideration
    of £888m. The transaction is subject to certain regulatory and other approvals
    and is expected to complete in Q4 2017.

    Upon completion of the sale, after the deduction of transaction expenses
    (including certain separation related costs and a £17 million one-off pension
    contribution) of approximately £72 million, the net cash proceeds are intended
    to be used to reduce indebtedness.

    We have completed the disposal of our stand-alone, transactional specialist
    recruitment businesses (education, social care and health personnel) to
    Endless. We are committed to our remaining Workplace Services businesses which
    include our public and private recruitment process outsourcing ('RPO'),
    executive search, vetting, employer branding agency and learning services
    businesses.

    We made two small acquisitions in the first half of 2017, Acutest, a provider
    of software testing services, and NYS, a travel management business. The
    aggregate consideration for these businesses was £10m, excluding deferred and
    contingent consideration.

    Group Board

    Andy Parker stepped down from the Board and left Capita on 15 September 2017.
    Andy has contributed strongly to the Company over the last 17 years and played
    a key role in leading Capita, as Chief Executive, for the past three years and
    through the challenges of 2016. Nick Greatorex, Capita's Group Finance
    Director, was appointed as Interim Chief Executive from that date until a
    successor takes up the post as Capita's new Chief Executive. During this
    interim period, Nick will also continue with his responsibilities as Group
    Finance Director. The Board is pleased with progress in our search process for
    a successor.

    Future prospects

    We expect underlying pre-tax profits before significant new contracts and
    restructuring to rise modestly in the second half, compared to the first half
    of 2017, supported by the cumulative benefit from cost initiatives, partially
    offset by some of our trading businesses which are not improving as quickly as
    expected.

    Following the receipt of proceeds from the disposal of our Asset Services
    businesses and expected cash flow in the second half of the year, we expect
    leverage to fall to around the bottom of our 2.0 to 2.5 times range at the end
    of 2017. Subject to the completion of this disposal, we may choose to unwind
    our receivables financing and, in conjunction with the impact of IFRS 15 upon
    contingent obligations under bonds and guarantees, this may result in leverage
    being around the middle of our range.

    We remain confident that the actions we commenced last year are making Capita a
    simpler business, well positioned for the future under new leadership.

                                        -Ends-                                     

    Half year condensed consolidated income statement 
    for the 6 months ended 30 June 2017

                      Notes                              30 June 2017                   30 June 2016 (restated)
                                                                                                               
                            Underlying  Business  Specific      Total  Underlying Business  Specific      Total
                                            exit     items                            exit     items           
                                                                                                               
                                    £m        £m        £m         £m          £m       £m        £m         £m
                                                                                                               
    Continuing                                                                                                 
    operations:                                                                                                
                                                                                                               
    Revenue             3    2,065.9      61.4         -    2,127.3     2,131.3     24.6         -    2,155.9  
                                                                                                               
    Cost of sales           (1,524.3 )   (49.7 )       -   (1,574.0 )  (1,656.6 )  (17.9 )       -   (1,674.5 )
                                                                                                               
    Gross profit               541.6      11.7         -      553.3       474.7      6.7         -      481.4  
                                                                                                               
    Administrative     5,7    (313.2 )   (75.6 )  (101.9 )   (490.7 )    (308.7 )   (6.7 )   (78.7 )   (394.1 )
    expenses                                                                                                   
                                                                                                               
    Operating profit    3      228.4     (63.9 )  (101.9 )     62.6       166.0        -     (78.7 )     87.3  
                                                                                                               
    Net finance costs   8      (33.4 )       -       2.1      (31.3 )     (32.3 )      -     (17.7 )    (50.0 )
                                                                                                               
    Loss on disposal    5          -      (3.7 )       -       (3.7 )         -     (0.1 )       -       (0.1 )
                                                                                                               
    Profit before tax   3      195.0     (67.6 )   (99.8 )     27.6       133.7     (0.1 )   (96.4 )     37.2  
                                                                                                               
    Income tax                 (36.0 )    (0.1 )    12.2      (23.9 )     (21.0 )      -      18.2       (2.8 )
    expense                                                                                                    
                                                                                                               
    Profit for the             159.0     (67.7 )   (87.6 )      3.7       112.7     (0.1 )   (78.2 )     34.4  
    period from                                                                                                
    continuing                                                                                                 
    operations                                                                                                 
                                                                                                               
    Discontinued                                                                                               
    operations:                                                                                                
                                                                                                               
    Profit for the      6          -      25.8         -       25.8           -     23.5      (2.2 )     21.3  
    period                                                                                                     
                                                                                                               
    Total profit for           159.0     (41.9 )   (87.6 )     29.5       112.7     23.4     (80.4 )     55.7  
    the period                                                                                                 
                                                                                                               
    Attributable to:                                                                                           
                                                                                                               
    Owners of the              152.5     (41.9 )   (85.5 )     25.1       106.9     23.4     (78.1 )     52.2  
    Company                                                                                                    
                                                                                                               
    Non-controlling              6.5         -      (2.1 )      4.4         5.8        -      (2.3 )      3.5  
    interests                                                                                                  
                                                                                                               
                               159.0     (41.9 )   (87.6 )     29.5       112.7     23.4     (80.4 )     55.7  
                                                                                                               
    Earnings/(loss)     9                                                                                      
    per share                                                                                                  
                                                                                                               
    Continuing                                                                                                 
    operations:                                                                                                
                                                                                                               
    - basic                    22.92 p (10.18) p (12.85) p   (0.11) p     16.12 p (0.02) p (11.44) p     4.66 p
                                                                                                               
    - diluted                  22.87 p (10.15) p (12.83) p   (0.11) p     16.03 p (0.01) p (11.38) p     4.64 p
                                                                                                               
    Total operations:                                                                                          
                                                                                                               
    - basic                    22.92 p  (6.30) p (12.85) p     3.77 p     16.12 p   3.53 p (11.78) p     7.87 p
                                                                                                               
    - diluted                  22.87 p  (6.29) p (12.82) p     3.76 p     16.03 p   3.51 p (11.71) p     7.83 p

    Half year condensed consolidated statement of comprehensive income 
    for the 6 months ended 30 June 2017

                                                             30 June 2017          30 June 2016
                                                                                     (restated)
                                                                                               
                                                              £m       £m           £m       £m
                                                                                               
    Profit for the period                                          29.5                  55.7  
                                                                                               
    Other comprehensive (expense)/income                                                       
                                                                                               
    Items that will not be reclassified subsequently to                                        
    profit or loss                                                                             
                                                                                               
    Actuarial loss on defined benefit pension schemes    (25.5 )               (88.9 )         
                                                                                               
    Deferred tax effect                                    4.3                  16.0           
                                                                                               
                                                                  (21.2 )               (72.9 )
                                                                                               
    Items that will or may be reclassified subsequently                                        
    to profit or loss                                                                          
                                                                                               
    Exchange differences on translation of foreign                  1.9                  36.9  
    operations                                                                                 
                                                                                               
    Net investment hedge                                           (2.4 )               (20.0 )
                                                                                               
    Gain on cash flow hedges                               2.8                   4.2           
                                                                                               
    Reclassification adjustments for losses included in      -                   1.5           
    the income statement                                                                       
                                                                                               
    Income tax effect                                     (0.5 )                (1.0 )         
                                                                                               
                                                                    2.3                   4.7  
                                                                                               
                                                                    1.8                  21.6  
                                                                                               
    Other comprehensive expense for the period net of             (19.4 )               (51.3 )
    tax                                                                                        
                                                                                               
    Total comprehensive income for the period net of               10.1                   4.4  
    tax                                                                                        
                                                                                               
    Attributable to:                                                                           
                                                                                               
    Owners of the Company                                           5.7                   0.9  
                                                                                               
    Non-controlling interests                                       4.4                   3.5  
                                                                                               
                                                                   10.1                   4.4  

    Half year condensed consolidated balance sheet 
    at 30 June 2017

                                                                           30 June  31 December
                                                                              2017         2016
                                                                                     (restated)
                                                                                               
                                                                Notes           £m           £m
                                                                                               
    Non-current assets                                                                         
                                                                                               
    Property, plant and equipment                                          311.8        394.7  
                                                                                               
    Intangible assets                                                    2,449.1      2,754.2  
                                                                                               
    Contract fulfilment assets                                   12        255.3        240.6  
                                                                                               
    Financial assets                                             16        274.9        337.6  
                                                                                               
    Deferred taxation                                                      177.1        222.4  
                                                                                               
    Trade and other receivables                                             37.6         48.8  
                                                                                               
                                                                         3,505.8      3,998.3  
                                                                                               
    Current assets                                                                             
                                                                                               
    Financial assets                                             16         63.9         92.6  
                                                                                               
    Contract fulfilment assets                                   12         43.1         41.6  
                                                                                               
    Disposal group assets held for sale                           5        755.3            -  
                                                                                               
    Funds assets                                                               -        173.6  
                                                                                               
    Trade and other receivables                                            692.7        801.1  
                                                                                               
    Cash                                                                 1,122.6      1,098.3  
                                                                                               
                                                                         2,677.6      2,207.2  
                                                                                               
    Total assets                                                         6,183.4      6,205.5  
                                                                                               
    Current liabilities                                                                        
                                                                                               
    Trade and other payables                                               797.0        977.0  
                                                                                               
    Deferred income                                                      1,472.9      1,374.9  
                                                                                               
    Overdrafts                                                   16        577.3        532.5  
                                                                                               
    Financial liabilities                                        16        292.2        224.2  
                                                                                               
    Disposal group liabilities held for sale                      5        346.3            -  
                                                                                               
    Funds liabilities                                                          -        173.6  
                                                                                               
    Provisions                                                   14        182.9        112.5  
                                                                                               
    Income tax payable                                                       8.8         18.6  
                                                                                               
                                                                         3,677.4      3,413.3  
                                                                                               
    Non-current liabilities                                                                    
                                                                                               
    Trade and other payables                                                21.9         21.0  
                                                                                               
    Deferred income                                                        212.9        216.7  
                                                                                               
    Financial liabilities                                        16      2,526.1      2,694.4  
                                                                                               
    Deferred taxation                                                       17.5         19.6  
                                                                                               
    Provisions                                                   14         15.1         48.2  
                                                                                               
    Employee benefits                                                      380.8        345.2  
                                                                                               
                                                                         3,174.3      3,345.1  
                                                                                               
    Total liabilities                                                    6,851.7      6,758.4  
                                                                                               
    Net liabilities                                                       (668.3 )     (552.9 )
                                                                                               
    Capital and reserves                                                                       
                                                                                               
    Issued share capital                                                    13.8         13.8  
                                                                                               
    Share premium                                                          501.3        501.3  
                                                                                               
    Employee benefit trust and treasury shares                              (0.2 )       (0.2 )
                                                                                               
    Capital redemption reserve                                               1.8          1.8  
                                                                                               
    Foreign currency translation reserve                                    (6.7 )       (6.2 )
                                                                                               
    Cash flow hedging reserve                                                2.3            -  
                                                                                               
    Retained earnings                                                   (1,253.2 )   (1,131.6 )
                                                                                               
    Equity attributable to owners of the Company                          (740.9 )     (621.1 )
                                                                                               
    Non-controlling interests                                               72.6         68.2  
                                                                                               
    Total equity                                                          (668.3 )     (552.9 )

    Half year condensed consolidated statement of changes in equity   
    for the 6 months ended 30 June 2017

                                            Share    Share    Employee     Capital   Retained      Foreign     Cash      Total Non-controlling      Total
                                          capital  premium     benefit  redemption   earnings     currency     flow                  interests     equity
                                                               trust &     reserve             translation  hedging                                      
                                                              treasury                             reserve  reserve                                      
                                                                shares                                                                                   
                                                                                                                                                         
                                               £m       £m          £m          £m         £m           £m       £m         £m              £m         £m
                                                                                                                                                         
    At 1 January 2016, as reported        13.8      500.7       (0.3 )      1.8       196.5      (21.2 )    (12.0 )    679.3       74.0           753.3  
                                                                                                                                                         
    Impact of change in accounting           -          -          -          -      (934.7 )        -          -     (934.7 )     (7.6 )        (942.3 )
    standards - IFRS 15                                                                                                                                  
                                                                                                                                                         
    At 1 January 2016, restated           13.8      500.7       (0.3 )      1.8      (738.2 )    (21.2 )    (12.0 )   (255.4 )     66.4          (189.0 )
                                                                                                                                                         
    Profit for the period, restated          -          -          -          -        52.2          -          -       52.2        3.5            55.7  
                                                                                                                                                         
    Other comprehensive (expense)/income     -          -          -          -       (72.9 )     16.9        4.7      (51.3 )        -           (51.3 )
                                                                                                                                                         
    Total comprehensive (expense)/income     -          -          -          -       (20.7 )     16.9        4.7        0.9        3.5             4.4  
    for the period                                                                                                                                       
                                                                                                                                                         
    Share based payment                      -          -          -          -         5.0          -          -        5.0          -             5.0  
                                                                                                                                                         
    Income tax deduction on exercise of      -          -          -          -         0.9          -          -        0.9          -             0.9  
    share options                                                                                                                                        
                                                                                                                                                         
    Deferred income tax relating to          -          -          -          -       (11.7 )        -          -      (11.7 )        -           (11.7 )
    share based payments                                                                                                                                 
                                                                                                                                                         
    Fair value movement in put option of     -          -          -          -        (2.4 )        -          -       (2.4 )        -            (2.4 )
    non-controlling interest                                                                                                                             
                                                                                                                                                         
    Shares issued                            -        0.6          -          -           -          -          -        0.6          -             0.6  
                                                                                                                                                         
    Equity dividends paid                    -          -          -          -      (140.9 )        -          -     (140.9 )     (4.2 )        (145.1 )
                                                                                                                                                         
     At 30 June 2016, restated            13.8      501.3       (0.3 )      1.8      (908.0 )     (4.3 )     (7.3 )   (403.0 )     65.7          (337.3 )
                                                                                                                                                         
    At 1 January 2017, as reported        13.8      501.3       (0.2 )      1.8      (102.3 )     (6.2 )        -      408.2       75.2           483.4  
                                                                                                                                                         
    Impact of change in accounting           -          -          -          -    (1,029.3 )        -          -   (1,029.3 )     (7.0 )      (1,036.3 )
    standards - IFRS 15                                                                                                                                  
                                                                                                                                                         
    At 1 January 2017, restated           13.8      501.3       (0.2 )      1.8    (1,131.6 )     (6.2 )        -     (621.1 )     68.2          (552.9 )
                                                                                                                                                         
    Profit for the period                    -          -          -          -        25.1          -          -       25.1        4.4            29.5  
                                                                                                                                                         
    Other comprehensive (expense)/income     -          -          -          -       (21.2 )     (0.5 )      2.3      (19.4 )        -           (19.4 )
                                                                                                                                                         
    Total comprehensive income/(expense)     -          -          -          -         3.9       (0.5 )      2.3        5.7        4.4            10.1  
    for the period                                                                                                                                       
                                                                                                                                                         
    Share based payment                      -          -          -          -         3.5          -          -        3.5          -             3.5  
                                                                                                                                                         
    Fair value movement in put option of     -          -          -          -         8.1          -          -        8.1          -             8.1  
    non-controlling interests                                                                                                                            
                                                                                                                                                         
    Equity dividends declared (see note      -          -          -          -      (137.1 )        -          -     (137.1 )        -          (137.1 )
    10)                                                                                                                                                  
                                                                                                                                                         
    At 30 June 2017                       13.8      501.3       (0.2 )      1.8    (1,253.2 )     (6.7 )      2.3     (560.3 )     72.6          (668.3 )

    Half year condensed consolidated cash flow statement   
    for the 6 months ended 30 June 2017

                                                                         30 June       30 June
                                                                            2017          2016
                                                                                    (restated)
                                                                                              
                                                                           Total         Total
                                                                                              
                                                               Notes          £m            £m
                                                                                              
    Cash generated from operations before non-underlying cash   15       241.6         355.2  
    items                                                                                     
                                                                                              
    Non-underlying trading                                       5         0.5             -  
                                                                                              
    Asset Services insurance recovery received                             9.0             -  
                                                                                              
    Business exit costs paid                                    14        (6.7 )       (11.3 )
                                                                                              
    Pension settlement paid                                                  -          (3.3 )
                                                                                              
    Cash generated from continuing operations                            244.4         340.6  
                                                                                              
    Cash generated from discontinued operations                           13.6           7.4  
                                                                                              
    Income tax refunded/(paid)                                            16.0         (32.0 )
                                                                                              
    Net interest paid                                                    (28.7 )       (29.1 )
                                                                                              
    Net cash inflow from operating activities                            245.3         286.9  
                                                                                              
    Cash flows from investing activities                                                      
                                                                                              
    Purchase of property, plant and equipment                            (30.5 )       (44.5 )
                                                                                              
    Purchase of intangible assets                                        (19.2 )       (35.8 )
                                                                                              
    Acquisition of subsidiary undertakings and businesses       13       (16.7 )       (91.6 )
                                                                                              
    Cash acquired on acquisition of subsidiary undertakings     13         4.2          12.3  
                                                                                              
    Debt repaid on acquisition of subsidiary undertakings                    -             -  
                                                                                              
    Proceeds on disposal of subsidiary undertakings              5        16.4          25.0  
                                                                                              
    Cash disposed of with subsidiary undertakings                            -          (5.4 )
                                                                                              
    Deferred consideration received                                        3.0             -  
                                                                                              
    Public sector subsidiary partnership payment                          (4.7 )           -  
                                                                                              
    Deferred consideration paid                                           (0.8 )        (6.7 )
                                                                                              
    Contingent consideration paid                                         (2.1 )        (9.0 )
                                                                                              
    Purchase of financial assets                                             -          (0.2 )
                                                                                              
    Investing activities from discontinued operations                     (7.5 )        (8.4 )
                                                                                              
    Net cash outflow from investing activities                           (57.9 )      (164.3 )
                                                                                              
    Cash flows from financing activities                                                      
                                                                                              
    Issue of ordinary share capital                                          -           0.6  
                                                                                              
    Dividends paid                                              10           -        (145.1 )
                                                                                              
    Capital element of finance lease rental payments            15        (1.8 )        (2.4 )
                                                                                              
    Proceeds from term loans                                    15           -         500.0  
                                                                                              
    Repayment of fixed rate swaps                               15       (84.6 )           -  
                                                                                              
    Repayment of term loan                                      15       (30.0 )           -  
                                                                                              
    Repayment of bonds                                          15       (33.8 )       (70.0 )
                                                                                              
    Financing arrangement costs                                 15        (1.2 )           -  
                                                                                              
    Net cash (outflow)/inflow from financing activities                 (151.4 )       283.1  
                                                                                              
    Net increase in cash and cash equivalents                             36.0         405.7  
                                                                                              
    Cash and cash equivalents at the beginning of the period             565.8          85.3  
                                                                                              
    Impact of movement in exchange rates                        15        (3.2 )         8.9  
                                                                                              
    Cash and cash equivalents at 30 June                                 598.6         499.9  
                                                                                              
    Cash and cash equivalents comprise:                                                       
                                                                                              
    Cash at bank and in hand                                           1,122.6         935.0  
                                                                                              
    Cash held by discontinued operations                                  53.3             -  
                                                                                              
    Overdraft                                                           (577.3 )      (435.1 )
                                                                                              
    Total                                                       15       598.6         499.9  

    Notes to the half year condensed consolidated financial statements   
    for the 6 months ended 30 June 2017

    1 Corporate information

    Capita plc is a public limited company incorporated in England and Wales whose
    shares are publicly traded. The half year condensed consolidated financial
    statements of the Company and its subsidiaries ('the Group') for the 6 months
    ended 30 June 2017 were authorised for issue in accordance with a resolution of
    the Directors on 20 September 2017.

    2 Basis of preparation, judgements and estimates, significant accounting
    policies, principal risks and uncertainties and going concern

    (a) Basis of preparation

    The half year condensed consolidated financial statements for the 6 months
    ended 30 June 2017 have been prepared in accordance with the Disclosure and
    Transparency Rules (DTR) of the Financial Conduct Authority and with IAS 34
    Interim Financial Reporting.

    The half year condensed consolidated financial statements do not include all
    the information and disclosures required in the annual financial statements and
    should be read in conjunction with the Group's annual financial statements as
    at 31 December 2016, which have been prepared in accordance with IFRSs as
    adopted by the European Union.

    The half year condensed consolidated financial statements do not comprise
    statutory accounts within the meaning of Section 434 of the Companies Act 2006.
    The statutory accounts for the year ended 31 December 2016 were approved by the
    Board of Directors on 1 March 2017 and delivered to the Registrar of Companies.
    The report of the auditors on those accounts was unqualified, did not contain
    an emphasis of matter paragraph and did not contain any statement under Section
    498 of the Companies Act 2006.

    The half year condensed consolidated financial statements for the 6 months
    ended 30 June 2017 have been reviewed by the Group's auditors pursuant to the
    Auditing Practices Board guidance on Review of Interim Financial Information.

    (b) Judgements and estimates

    In preparing these half year condensed consolidated financial statements,
    management make judgements, estimates and assumptions that affect the
    application of accounting policies and the reported amount of assets,
    liabilities, income and expense. Actual results may differ from these
    estimates. The significant judgements made by management in applying the
    Group's accounting policies and the key sources of estimation uncertainty were
    the same as those that applied to the consolidated financial statements as at
    the year ended 31 December 2016 other than those additional areas which have
    arisen as a consequence of the early adoption of IFRS 15 Revenue from Contracts
    with Customers - see appendix 2 where these are explained.

    (c) Significant accounting policies

    The accounting policies adopted in preparation of the half year condensed
    consolidated financial statements are consistent with those followed in the
    preparation of the Group's annual financial statements for the year ended 31
    December 2016, except for the early adoption of IFRS 15 Revenue from Contracts
    with Customers.

    Initial adoption of IFRS 15 Revenue from Contracts with Customers

    The standard has an effective date of 1 January 2018 but the Group has decided
    to early adopt this standard with a date of initial application to the Group of
    1 January 2017.

    IFRS 15 replaces all existing revenue requirements in IFRS and applies to all
    revenue arising from contracts with customers unless the contracts are within
    the scope of other standards such as IAS 17 Leases.

    The standard outlines the principles entities must apply to measure and
    recognise revenue with the core principle being that entities should recognise
    revenue at an amount that reflects the consideration to which the entity
    expects to be entitled in exchange for fulfilling its performance obligations
    to a customer.

    The principles in IFRS 15 must be applied using the following 5 step model:

     1. Identify the contract(s) with a customer
     2. Identify the performance obligations in the contract
     3. Determine the transaction price
     4. Allocate the transaction price to the performance obligations in the
        contract
     5. Recognise revenue when or as the entity satisfies its performance
        obligations

    The standard requires entities to exercise considerable judgement taking into
    account all the relevant facts and circumstances when applying each step of
    this model to its contracts with customers. The standard also specifies how to
    account for the incremental costs of obtaining a contract and the costs
    directly related to fulfilling a contract, as well as requirements covering
    matters such as licences of intellectual property, warranties, principal versus
    agent assessment and options to acquire additional goods or services.

    The Group has applied IFRS 15 fully retrospectively in accordance with
    paragraph C3 (a) of the standard, restating the prior period's comparatives and
    electing to use the following expedients:

    • in respect of completed contracts, the Group will not restate contracts that
    (i) begin and end within the same annual reporting period; or (ii) are
    completed contracts at the beginning of the earliest period presented (para. C5
    (a));

    • in respect of completed contracts that have variable consideration, the Group
    will use the transaction price at the date the contract was completed rather
    than estimating variable consideration amounts in the comparative periods
    (para. C5(b)); and

    • for all reporting periods presented before the date of initial application,
    the Group will not disclose the amount of the transaction price allocated to
    the remaining performance obligations or an explanation of when the Group
    expects to recognise that amount as revenue (para C5(c)).

    Details of the change in the Group's accounting policy in respect of revenue
    recognition, related matters consequent upon the early adoption of IFRS 15 and
    an explanation of the impact on the Group's prior period financial statements
    are set out in appendix 2.

    IFRS 16 Leases

    The adoption of IFRS 16 Leases is mandatory for the Group for the financial
    year beginning 1 January 2019.

    IFRS 16 replaces the existing accounting requirements in IAS 17 Leases. A
    single model for lessees will be required, eliminating off balance sheet
    accounting for non-exempt operating leases. As a result, lease liabilities and
    corresponding right of use lease assets would come onto the balance sheet and
    would generally be unwound and depreciated over the term of the lease. The
    presentation and timing of income and expense recognition in the income
    statement would change, however the total income and expense over the term of
    the lease remains the same. There would be no impact on cash flows as the
    payments received or paid under the leases remain the same, although there
    would be a change in presentation of cash flows. The application of the new
    standard would have a varying impact on opening retained earnings at the
    initial date of adoption dependent upon which transition method is chosen.

    The Group is assessing the potential impact on its consolidated financial
    statements resulting from the application of IFRS 16 and expects to disclose a
    range of estimates for the quantitative impact prior to initial adoption. It is
    not practicable to provide a reasonable estimate of the effect of IFRS 16 or to
    conclude on the transition approach to be taken until the detailed reviews have
    been completed.

    (d) Principal risks and uncertainties and going concern

    The Directors have considered the principal risks and uncertainties affecting
    the Group's financial position and prospects in 2017 and out 12 months beyond
    the reporting date. As described on pages 46 to 55 of the Group's annual report
    for 2016, the Group continues to be exposed to a number of risks and has well
    established systems and procedures in place to identify, assess and mitigate
    those risks.

    The principal risks include those arising from: significant failures in
    internal control systems; lack of corporate financial stability; failures in
    information security controls; legal and regulatory risk; adverse financial/
    business performance; failure to innovate; increased internal business
    complexity; adverse changes in the national or international political
    landscape; operational issues leading to reputational risk; operational IT
    risks; failure to effectively manage the Group's talent and human resources;
    and weaknesses in the acquisition and contracting life cycle.

    The Directors continue to review the principal risks on an ongoing basis and
    confirm that there are no further principal risks, although noting that the
    residual risk arising from the lack of corporate financial stability has
    reduced during 2017 as the mitigating measures undertaken have impacted our
    position. Further the residual risk from Operational IT risk has increased due
    to identified dependencies on certain aged infrastructure which the Group will
    address through its longer term IT strategy.

    In assessing the basis of preparation for the period 30 June 2017, the
    Directors have considered the principles of the FRC's "Guidance on Risk
    Management, Internal Control and Related Financial and Business Reporting
    2014", namely assessing the applicability of the going concern basis, the
    review period and disclosures.

    The Group has net debt of £1,595.5m at 30 June 2017 (31 December 2016: £
    1,778.8m).

    The Group's committed revolving credit facility, bank term loan facilities and
    private placement notes are subject to compliance with covenant requirements
    including maximum ratios of adjusted net debt to adjusted EBITDA before
    exceptional items. The Group's covenanted maximum ratio for all debt
    instruments is currently 3.5 times falling to 3.0 times under some debt
    instruments following receipt of the proceeds of the sale of the Capita Asset
    Services businesses. They are tested semi-annually.  The Group's calculation of
    adjusted net debt to adjusted EBITDA at 30 June 2017 is 2.86 times and is in
    compliance with the relevant ratios.

    The Board has undertaken a rigorous assessment of the forecast assumptions that
    support the going concern basis, taking into account the financial forecasts,
    the Group's existing debt levels, the committed funding and liquidity
    positions, the Group's historic experience in generating cash from trading
    activities, and the working capital management strategies available to it. 
    They have applied sensitivity analysis to these forecasts through both
    reductions in cash collections, underperformance against the 2017 business
    plan, a potential delay of the completion of the sale of the Capita Asset
    Services businesses into 2018, and the possible range of settlements described
    in note 19 Contingent Liabilities.  They have considered mitigating actions
    available to the Group in response to these sensitivities.  After applying
    these sensitivities and mitigating actions, the Group forecasts that it will
    continue to operate within its covenants.

    Accordingly and notwithstanding that the half year condensed consolidated
    balance sheet shows a net liability position (which from December 2017 will
    have the effect of adding all outstanding contingent liabilities under
    performance bonds and bank guarantees to adjusted net debt under the covenant
    calculation), the Board has a reasonable expectation that the Company and the
    Group will be able to operate as a going concern for the foreseeable future and
    are satisfied that the half year condensed consolidated financial statements
    should be prepared on a going concern basis.

    3 Segmental information

    The Group's operations are managed separately according to the nature of the
    services provided, with each segment representing a strategic business division
    offering a different package of client outcomes across the markets the Group
    serves.  As announced at the 2016 year end, the Group from 1 January 2017
    introduced a new simplified structure that better aligns sales and operations
    to the markets and customers that the Group addresses.  This is now reflected
    in the segment reporting and the comparatives have been restated on this same
    basis.   No segments are aggregated to form the operating segments below, and
    the information presents the information as it is reported to the Group Board. 
    In preparing these interim statements, the Board has considered how business
    performance is assessed internally and in addition to the announced new
    business divisions, Group trading and central functions will also be reported
    separately going forwards.  Comparative information has been restated
    accordingly.  The Board believe the changes improve accountability and
    transparency across the Group.

                        Digital &       IT       Public Professional      Private     Group       Total           Total     Total
                         Software Services       Sector     Services       Sector   trading  underlying  non-underlying          
                        Solutions          Partnerships              Partnerships       and                                      
                                                                                    central                                      
                                                                                  functions                                      
                                                                                                                                 
    6 months to 30 June        £m       £m           £m           £m           £m        £m          £m              £m        £m
    2017                                                                                                                         
                                                                                                                                 
    Continuing                                                                                                                   
    operations                                                                                                                   
                                                                                                                                 
    Contract length > 2 185.7      169.6     382.9        109.5        601.7        5.0     1,454.4          -          1,454.4  
    years                                                                                                                        
                                                                                                                                 
    Contract length < 2  17.2       31.8      86.2         44.3        156.0          -       335.5        0.9            336.4  
    years                                                                                                                        
                                                                                                                                 
    Transactional         4.0       72.5      69.7         96.8         33.0          -       276.0       60.5            336.5  
    (point in time)                                                                                                              
                                                                                                                                 
    Total segment       206.9      273.9     538.8        250.6        790.7        5.0     2,065.9       61.4          2,127.3  
    revenue                                                                                                                      
                                                                                                                                 
    Trading revenue     224.1      378.5     577.6        310.0        857.7       40.2     2,388.1          -          2,388.1  
                                                                                                                                 
    Inter-segment       (17.2 )   (104.6 )   (38.8 )      (59.4 )      (67.0 )    (35.2 )    (322.2 )        -           (322.2 )
    revenue                                                                                                                      
                                                                                                                                 
    Total underlying    206.9      273.9     538.8        250.6        790.7        5.0     2,065.9          -          2,065.9  
    segment revenue                                                                                                              
                                                                                                                                 
    Non-underlying          -          -       5.9         54.6          0.9          -                   61.4             61.4  
    revenue                                                                                                                      
                                                                                                                                 
    Total segment       206.9      273.9     544.7        305.2        791.6        5.0                                 2,127.3  
    revenue                                                                                                                      
                                                                                                                                 
    Underlying trading   58.6       46.2      45.8         51.2         81.5      (54.9 )     228.4          -            228.4  
    result                                                                                                                       
                                                                                                                                 
    Non-underlying          -          -       0.2          0.2          0.1          -                    0.5              0.5  
    trading result                                                                                                               
                                                                                                                                 
    Total trading        58.6       46.2      46.0         51.4         81.6      (54.9 )                                 228.9  
    result                                                                                                                       
                                                                                                                                 
    Non-trading items:                                                                                                           
                                                                                                                                 
    Business exit costs                                                                                                   (64.4 )
                                                                                                                                 
    Intangible amortisation                                                                                               (63.9 )
                                                                                                                                 
    Acquisition costs                                                                                                      (1.1 )
                                                                                                                                 
    Contingent consideration movement                                                                                       0.1  
                                                                                                                                 
    Asset Services settlement provision                                                                                   (37.0 )
                                                                                                                                 
    Operating profit                                                                                                       62.6  
                                                                                                                                 
    Net finance costs                                                                                                     (31.3 )
                                                                                                                                 
    Loss on business disposal                                                                                              (3.7 )
                                                                                                                                 
    Profit before tax                                                                                                      27.6  
                                                                                                                                 
    Income tax expense                                                                                                    (23.9 )
                                                                                                                                 
    Profit for the period - continuing operations                                                                           3.7  
                                                                                                                                 
    Profit for the period - discontinued operations                                                                        25.8  
                                                                                                                                 
    Profit for the period - total                                                                                          29.5  

       

                          Digital &       IT       Public Professional      Private     Group       Total           Total     Total
                           Software Services       Sector     Services       Sector   trading  underlying  non-underlying          
                          Solutions          Partnerships              Partnerships       and                                      
                                                                                      central                                      
                                                                                    functions                                      
                                                                                                                                   
    6 months to 30 June          £m       £m           £m           £m           £m        £m          £m              £m        £m
    2016 (restated)                                                                                                                
                                                                                                                                   
    Continuing operations                                                                                                          
                                                                                                                                   
    Contract length > 2   189.4      136.5     394.0       118.7         576.3       10.1     1,425.0      24.6           1,449.6  
    years                                                                                                                          
                                                                                                                                   
    Contract length < 2    16.4       35.6     112.4        39.2         132.4          -       336.0         -             336.0  
    years                                                                                                                          
                                                                                                                                   
    Transactional (point    3.8       69.1      64.1       195.2          38.1          -       370.3         -             370.3  
    in time)                                                                                                                       
                                                                                                                                   
    Total segment revenue 209.6      241.2     570.5       353.1         746.8       10.1     2,131.3      24.6           2,155.9  
                                                                                                                                   
    Trading revenue       227.8      362.0     599.4       417.6         800.3       35.8     2,442.9         -           2,442.9  
                                                                                                                                   
    Inter-segment revenue (18.2 )   (120.8 )   (28.9 )     (64.5 )       (53.5 )    (25.7 )    (311.6 )       -            (311.6 )
                                                                                                                                   
    Total underlying      209.6      241.2     570.5       353.1         746.8       10.1     2,131.3         -           2,131.3  
    segment revenue                                                                                                                
                                                                                                                                   
    Non-underlying            -          -      22.5           -           2.1          -                  24.6              24.6  
    revenue                                                                                                                        
                                                                                                                                   
    Total segment revenue 209.6      241.2     593.0       353.1         748.9       10.1                                 2,155.9  
                                                                                                                                   
    Underlying trading     67.1       15.3       5.4        46.8          45.5      (14.1 )     166.0         -             166.0  
    result                                                                                                                         
                                                                                                                                   
    Non-underlying            -          -      (0.8 )         -           0.8          -                     -                 -  
    trading result                                                                                                                 
                                                                                                                                   
    Total trading result   67.1       15.3       4.6        46.8          46.3      (14.1 )                                 166.0  
                                                                                                                                   
    Non-trading items:                                                                                                             
                                                                                                                                   
    Intangible amortisation                                                                                                 (72.6 )
                                                                                                                                   
    Acquisition costs                                                                                                        (5.5 )
                                                                                                                                   
    Contingent consideration movement                                                                                        (0.6 )
                                                                                                                                   
    Operating profit                                                                                                         87.3  
                                                                                                                                   
    Net finance costs                                                                                                       (50.0 )
                                                                                                                                   
    Loss on business disposal                                                                                                (0.1 )
                                                                                                                                   
    Profit before tax                                                                                                        37.2  
                                                                                                                                   
    Income tax expense                                                                                                       (2.8 )
                                                                                                                                   
    Profit for the period - continuing operations                                                                            34.4  
                                                                                                                                   
    Profit for the period                                                                                                    21.3  
    - discontinued                                                                                                                 
    operations                                                                                                                     
                                                                                                                                   
    Profit for the period                                                                                                    55.7  
    - total                                                                                                                        

    4 Underlying operating profit

                                                     30 June 2017                  30 June 2016 (restated)
                                                                                                          
                             Underlying   Significant       Total      Underlying   Significant      Total
                                 before new contracts  underlying          before new contracts underlying
                            significant           and                 significant           and           
                          new contracts restructuring               new contracts restructuring           
                                    and                                       and                         
                          restructuring                             restructuring                         
                                                                                                          
                                     £m            £m          £m              £m            £m         £m
                                                                                                          
    Continuing                                                                                            
    operations:                                                                                           
                                                                                                          
    Revenue                  2,065.9             -      2,065.9       2,131.3             -      2,131.3  
                                                                                                          
    Cost of sales           (1,524.3 )           -     (1,524.3 )    (1,656.6 )           -     (1,656.6 )
                                                                                                          
    Gross profit               541.6             -        541.6         474.7             -        474.7  
                                                                                                          
    Administrative            (313.2 )           -       (313.2 )      (308.7 )           -       (308.7 )
    expenses                                                                                              
                                                                                                          
    Operating profit           228.4             -        228.4         166.0             -        166.0  

    Following the adoption of IFRS 15, the Board has adopted a policy to separately
    disclose the in-period operating profit/loss from significant new contract wins
    and significant restructuring, in order for users of the financial statements
    to obtain a proper understanding of the financial information and the
    performance of the business.

    A new contract is assessed as that which is either entirely new to the Group,
    or a significant amendment to the scope and scale of an existing contract.

    The Group continually assesses the resourcing levels, both at a divisional
    level and also in relation to the management and delivery of individual
    contracts.  This results in restructuring in the normal course of business and
    any such charges are recorded in "Underlying before significant new contracts
    and restructuring" results.  A significant restructuring is assessed as that
    above this normal level of restructuring.

    Contract terminations arising in the normal course of business and which result
    in the disposal of a contract fulfilment asset and/or a true-up of revenue
    recognised, will be included within "Underlying before significant new
    contracts and restructuring", and separately disclosed if considered material.

    5 Business exits

    2017 business exits

    Business exits are businesses that have been exited during the year or in the
    process of being disposed of.  None of these business exits meet the definition
    of "discontinued operations" as stipulated by IFRS 5, which requires disclosure
    and comparatives to be restated where the relative size of a disposal or
    business closure is significant, which is normally understood to mean a
    reported segment. Accordingly, the separate presentation described below does
    not fall within the requirements of IFRS 5 concerning discontinued operations.
    The expected disposal of Capita Asset Services does meet the definition of a
    discontinued operation, and is disclosed separately in note 6 - Discontinued
    Operations.

    In the 2016 annual report, we disclosed that the Group intended to dispose of
    the majority of our specialist recruitment businesses which no longer fit the
    Group's core business strategy.  At 31 December 2016, neither of these
    businesses met the criteria to be treated as held for sale.

    During the period, the disposal of the specialist recruitment businesses has
    been completed, along with the disposal of part of the Capita Europe business,
    and the closure of an events business, and their results are all included
    within business exits for the period.  As at 30 June 2017, the Group was in an
    active process to sell a non core property business and has treated this as a
    disposal group held for sale at this date.

    Income statement impact                                                                      
                                                                                                 
                                                                    Non-trading                  
                                                                                                 
                                                    Trading     Cash  Non-cash    Total     Total
                                                         £m       £m        £m       £m        £m
                                                                                                 
    Revenue                                          61.4        -         -        -      61.4  
                                                                                                 
    Cost of sales                                   (49.7 )      -         -        -     (49.7 )
                                                                                                 
    Gross profit                                     11.7        -         -        -      11.7  
                                                                                                 
    Administrative expenses                         (11.2 )  (56.4 )    (8.0 )  (64.4 )   (75.6 )
                                                                                                 
    Operating profit/(loss)                           0.5    (56.4 )    (8.0 )  (64.4 )   (63.9 )
                                                                                                 
    Profit/(loss) on business disposal (see             -     16.3     (20.0 )   (3.7 )    (3.7 )
    below)                                                                                       
                                                                                                 
    Profit/(loss) before tax                          0.5    (40.1 )   (28.0 )  (68.1 )   (67.6 )
                                                                                                 
    Income tax expense                               (0.1 )      -         -        -      (0.1 )
                                                                                                 
    Profit/(loss) for the period                      0.4    (40.1 )   (28.0 )  (68.1 )   (67.7 )

    Trading revenue and costs represent the current period trading performance of
    those businesses being exited or disposed.

    There are no cumulative income or expenses included in other comprehensive
    income relating to the disposal group.

    Loss on business disposal                                          Cash  Non-cash     Total
                                                                                               
                                                                         £m        £m        £m
                                                                                               
    Property, plant and equipment                                       -       1.2       1.2  
                                                                                               
    Intangible assets                                                   -       6.9       6.9  
                                                                                               
    Trade and other receivables                                         -      24.0      24.0  
                                                                                               
    Cash                                                              0.1         -       0.1  
                                                                                               
    Trade and other payables                                            -     (11.0 )   (11.0 )
                                                                                               
    Income tax                                                          -      (0.2 )    (0.2 )
                                                                                               
    Deferred tax                                                        -      (0.8 )    (0.8 )
                                                                                               
    Provisions                                                          -      (0.1 )    (0.1 )
                                                                                               
    Total net assets disposed of                                      0.1      20.0      20.1  
                                                                                               
    Cash consideration received                                      17.0         -      17.0  
                                                                                               
    Costs of disposal                                                (0.6 )       -      (0.6 )
                                                                                               
    Proceeds, less costs, on disposal                                16.4         -      16.4  
                                                                                               
    Loss on business disposal                                        16.3     (20.0 )    (3.7 )

       

    Non-trading administrative expenses                           Disposal/  Held for     Total
                                                                    closure  disposal          
                                                                                               
                                                                         £m        £m        £m
                                                                                               
    Cash paid or to be paid:                                                                   
                                                                                               
    Separation costs paid                                            (0.5 )    (5.0 )    (5.5 )
                                                                                               
    Provision in respect of disposal and closure                     (3.4 )   (47.5 )   (50.9 )
    costs                                                                                      
                                                                                               
                                                                     (3.9 )   (52.5 )   (56.4 )
                                                                                               
    Non-cash:                                                                                  
                                                                                               
    Accelerated depreciation on property, plant                      (1.7 )       -      (1.7 )
    and equipment                                                                              
                                                                                               
    Accelerated amortisation on goodwill                                -      (6.3 )    (6.3 )
                                                                                               
                                                                     (1.7 )    (6.3 )    (8.0 )
                                                                                               
                                                                     (5.6 )   (58.8 )   (64.4 )

    Analysed above are non-trading administrative expenses which include cash costs
    from exiting the disposed business, the ongoing stranded costs such as property
    and redundancy payments and impairment losses recognised in the disposal
    group.  These include costs in respect of the disposal of Capita Asset Services
    as at 30 June 2017.

    As at 30 June 2017, the Group was in an active process to sell a non core
    property business and has treated this as a disposal group held for sale at
    this date.

    Assets and liabilities of disposal group held for                                           
    sale - continuing operations                                                                
                                                                                                
                                                                            As at          As at
                                                                     30 June 2017    31 December
                                                                                            2016
                                                                                                
                                                                               £m             £m
                                                                                                
    Property, plant and equipment                                             -            0.1  
                                                                                                
    Intangible assets                                                       2.4              -  
                                                                                                
    Trade and other receivables                                             3.5            4.2  
                                                                                                
    Assets held for sale                                                    5.9            4.3  
                                                                                                
    Trade and other payables                                               (1.7 )         (9.1 )
                                                                                                
    Provisions                                                             (0.2 )            -  
                                                                                                
    Liabilities held for sale                                              (1.9 )         (9.1 )

       

    Disposal group as reported on balance                 Continuing  Discontinued         Total
    sheet                                                 operations    operations              
                                                                                                
                                                                  £m            £m            £m
                                                                                                
    Assets held for sale                                       5.9         749.4         755.3  
                                                                                                
    Liabilities held for sale                                 (1.9 )      (344.4 )      (346.3 )

    2016 business exits

    In the 6 months to 30 June 2016, the Group exited some of its small non-core
    health businesses.

    Income statement impact                                           Non-trading                
                                                                                                 
                                                       Trading    Cash  Non-cash   Total    Total
                                                            £m      £m        £m      £m       £m
                                                                                                 
    Revenue                                             24.6        -       -        -     24.6  
                                                                                                 
    Cost of sales                                      (17.9 )      -       -        -    (17.9 )
                                                                                                 
    Gross profit                                         6.7        -       -        -      6.7  
                                                                                                 
    Administrative expenses                             (6.7 )      -       -        -     (6.7 )
                                                                                                 
    Operating loss                                         -        -       -        -        -  
                                                                                                 
    Loss on business disposal                              -     39.6   (39.7 )   (0.1 )   (0.1 )
                                                                                                 
    Loss before tax                                        -     39.6   (39.7 )   (0.1 )   (0.1 )
                                                                                                 
    Income tax expense                                     -        -       -        -        -  
                                                                                                 
    Loss for the period                                    -     39.6   (39.7 )   (0.1 )   (0.1 )

    Trading revenue and costs represent the trading performance of these businesses
    in the period to the date of exit.

    Non-trading costs include the costs of exiting a number of small non-core
    health businesses and ongoing stranded costs such as IT, property lease and
    redundancy payments.

    Loss on business disposal                                         Cash  Non-cash     Total
                                                                                              
                                                                        £m        £m        £m
                                                                                              
    Disposal group assets                                               -     63.7      63.7  
                                                                                              
    Disposal group liabilities                                          -    (20.0 )   (20.0 )
                                                                                              
    Total net assets disposed of                                        -     43.7      43.7  
                                                                                              
    Cash (net of cash disposed of)                                   19.6        -      19.6  
                                                                                              
    Deferred consideration receivable                                20.0        -      20.0  
                                                                                              
    Fair value of residual interest                                     -      4.0       4.0  
                                                                                              
    Proceeds on disposal                                             39.6      4.0      43.6  
                                                                                              
    Loss on business disposal                                        39.6    (39.7 )    (0.1 )

    6 Discontinued operations

    In the 2016 annual report, we disclosed that the Group intended to dispose of
    the majority of the Capita Asset Services Division.  At 31 December 2016, this
    business did not meet the criteria to be treated as held for sale as the sale
    process had not progressed sufficiently to be reasonably certain at that time,
    but at 30 June 2017 the disposal process met the criteria to be treated as held
    for sale.

    The disposal meets the definition of a discontinued operation as stipulated by
    IFRS 5.  The comparatives have been restated.  The following presentation, and
    that included in other notes, follows the requirements of IFRS 5.

                                                      30 June 2017                      30 June 2016
                                                                                                    
                                       Trading Non-trading   Total     Trading Non-trading     Total
                                                                                                    
                                            £m          £m      £m          £m          £m        £m
                                                                                                    
    Discontinued operations:                                                                        
                                                                                                    
    Revenue                            157.9           -   157.9       147.3          -      147.3  
                                                                                                    
    Cost of sales                      (56.4 )         -   (56.4 )     (57.2 )        -      (57.2 )
                                                                                                    
    Gross profit                       101.5           -   101.5        90.1          -       90.1  
                                                                                                    
    Administrative expenses            (70.7 )      (0.6 ) (71.3 )     (62.2 )     (2.6 )    (64.8 )
                                                                                                    
    Operating profit                    30.8        (0.6 )  30.2        27.9       (2.6 )     25.3  
                                                                                                    
    Net finance costs                      -         0.6     0.6           -       (0.1 )     (0.1 )
                                                                                                    
    Profit before tax                   30.8           -    30.8        27.9       (2.7 )     25.2  
                                                                                                    
    Income tax expense                  (5.0 )         -    (5.0 )      (4.4 )      0.5       (3.9 )
                                                                                                    
    Profit for the period               25.8           -    25.8        23.5       (2.2 )     21.3  

    Non-trading items include amortisation on acquired intangibles within
    administrative expenses, and fair value movements on available for sale assets
    in net finance costs.

                                                     Note       30 June 2017 31 December 2016
                                                                                             
                                                                          £m               £m
                                                                                             
    Non-current assets                                                                       
                                                                                             
    Property, plant and equipment                                      72.6             76.3 
                                                                                             
    Intangible assets                                                 250.5            250.8 
                                                                                             
    Financial assets                                                      -              3.5 
                                                                                             
    Deferred taxation                                                   1.1              0.6 
                                                                                             
    Trade and other receivables                                         1.9              5.9 
                                                                                             
                                                                      326.1            337.1 
                                                                                             
    Current assets                                                                           
                                                                                             
    Financial assets                                                    5.0             10.5 
                                                                                             
    Funds assets                                                      282.6            173.6 
                                                                                             
    Income tax receivable                                               4.6              3.0 
                                                                                             
    Trade and other receivables                                        77.8            113.6 
                                                                                             
    Cash                                                               53.3             37.7 
                                                                                             
                                                                      423.3            338.4 
                                                                                             
    Assets held for sale                                              749.4            675.5 
                                                                                             
    Current liabilities                                                                      
                                                                                             
    Trade and other payables                                           36.4            109.9 
                                                                                             
    Deferred income                                                    13.9              7.9 
                                                                                             
    Funds liabilities                                                 282.6            173.6 
                                                                                             
    Provisions                                        14                0.2             24.4 
                                                                                             
                                                                      333.1            315.8 
                                                                                             
    Non-current liabilities                                                                  
                                                                                             
    Trade and other payables                                            0.3              0.4 
                                                                                             
    Deferred taxation                                                  11.0              5.1 
                                                                                             
                                                                       11.3              5.5 
                                                                                             
    Liabilities held for sale                                         344.4            321.3 
                                                                                             
    Net assets held for sale                                          405.0            354.2 

       

                                                                30 June 2017      30 June 2016
                                                                                              
                                                                          £m                £m
                                                                                              
    Cash flows from (used in) discontinued operations                                         
                                                                                              
    Net cash inflow from operating activities                         13.6               7.4  
                                                                                              
    Net cash outflow from investing activities                        (7.5 )            (8.4 )
                                                                                              
    Net cash flow for period                                           6.1              (1.0 )

    7 Specific items

    Included within the specific items column are:

                                                      6 months to 30 June 2017 6 months to 30 June 2016 (restated)
                                                                                                                  
                                         Cash   Cash Non-cash                    Cash Cash in Non-cash            
                                           in     in                     Total     in  future                Total
                                         year future                             year                             
                                                                                                                  
                                 Notes     £m     £m       £m               £m     £m      £m       £m          £m
                                                                                                                  
    Amortisation of acquired               -      -    63.9     63.9               -       -    72.6     72.6     
    intangibles                                                                                                   
                                                                                                                  
    Contingent consideration      16       -      -    (0.1 )   (0.1 )             -       -     0.6      0.6     
    movements                                                                                                     
                                                                                                                  
    Asset Services settlement              -   37.0       -     37.0               -       -       -        -     
    provision                                                                                                     
                                                                                                                  
    Professional fees regarding          0.7    0.3       -      1.0             3.3     2.0       -      5.3     
    acquisitions                                                                                                  
                                                                                                                  
    Stamp duty paid on                   0.1      -       -      0.1             0.2       -       -      0.2     
    acquisitions                                                                                                  
                                                                                                                  
    Total                                0.8   37.3    63.8    101.9             3.5     2.0    73.2     78.7     

    The above items are presented as specific items as the Board has concluded that
    these items are not reflective of the in-period performance of the Group. The
    tax impact of the above items is a £12.6m credit (30 June 2016: £14.6m
    credit).  These items are discussed below:

    Amortisation of acquired intangible assets: the Group carries on its balance
    sheet significant balances related to acquired intangible assets.  The
    amortisation of these assets, and any impairment charges, are reported
    separately as they distort the in-year trading results and performance of the
    acquired businesses is assessed through the underlying operational results.

    Contingent consideration movements: in accordance with IFRS 3, movements in the
    fair value of contingent consideration on acquisitions go through the Group
    income statement.  These are reported separately because performance of the
    acquired businesses is assessed through the underlying operational results and
    such a charge/credit movement would distort underlying results.

    Asset services settlement provision: these costs relate to the litigation and
    regulatory review concerning the Connaught Income series 1 Fund ("The Fund")
    (see note 14), and are included in specific items as they are not reflective of
    the in-year performance of the Group's operational activities.

    Acquisition related costs and stamp duty: these costs incurred with
    acquisitions are not included in the assessment of business performance which
    is based on the underlying results. IFRS requires certain costs incurred in
    connection with acquired businesses to be recorded within the Group income
    statement.  These charges are not included in the internal assessment of
    business performance which as above is based on the underlying operational
    results.  These charges are therefore separately disclosed as specific items.

    8 Net finance costs

                                                                      6 months to   6 months
                                                                                          to
                                                                                            
                                                                          30 June    30 June
                                                                             2017       2016
                                                                                            
                                                                               £m         £m
                                                                                            
    Interest receivable                                                    (0.1 )     (0.1 )
                                                                                            
    Bonds                                                                  18.8       18.0  
                                                                                            
    Fixed rate interest rate swaps - realised                               3.2        5.9  
                                                                                            
    Finance lease                                                             -        0.1  
                                                                                            
    Bank loans and overdrafts                                               6.8        5.2  
                                                                                            
    Net interest cost on defined benefit pension schemes                    4.7        3.2  
                                                                                            
    Interest payable                                                       33.5       32.4  
                                                                                            
    Underlying net finance costs                                           33.4       32.3  
                                                                                            
    Fixed rate interest rate swaps - mark to market                        (0.5 )     22.8  
                                                                                            
    Discount unwind on public sector subsidiary partnership                 1.0        1.0  
    payment                                                                                 
                                                                                            
    Fair value movement in trade investments                                  -        0.1  
                                                                                            
    Non-designated foreign exchange forward contracts - mark               (1.6 )     (7.3 )
    to market                                                                               
                                                                                            
    Derivatives' counterparty credit risk adjustment - mark to             (1.0 )      0.9  
    market                                                                                  
                                                                                            
    Derivatives' own credit risk adjustment - mark to market                  -        0.2  
                                                                                            
    Non-underlying net finance (income)/costs                              (2.1 )     17.7  
                                                                                            
    Total net finance costs                                                31.3       50.0  

    9 Earnings/(loss) per share

    Basic earnings per share have been calculated using the weighted average number
    of shares in issue during the period of 665.3m (30 June 2016: 663.2m).  The
    diluted average number of shares is 666.7m (30 June 2016: 666.9m) having
    adjusted the weighted average number of shares for shares yet to be issued that
    will be dilutive.

    The profits used to calculate the measures are:

                                                          30 June 2017 30 June 2016           
                                                                                              
                                                 Continuing      Total  Continuing       Total
                                                 operations operations  operations  operations
                                                                                              
                                                         £m         £m          £m          £m
                                                                                              
    Underlying profit attributable to               152.5       152.5      106.9       106.9  
    shareholders                                                                              
                                                                                              
    Total profit/(loss) attributable to              (0.7 )      25.1       30.9        52.2  
    shareholders                                                                              

    As at 20 September 2017, there were 670.2m shares in issue.

    10 Dividends

    The interim dividend of 11.1p (2016: 11.1p) per share (not recognised as a
    liability at 30 June 2017) will be payable on 20 October 2017 to ordinary
    shareholders on the register at the close of business on 30 November 2017. The
    dividend disclosed in the statement of changes in equity represents the final
    ordinary dividend of 20.6p (2016: 21.2p) per share as proposed in the 31
    December 2016 financial statements and approved at the Group's AGM (not
    recognised as a liability at 31 December 2016) that was paid on 3 July 2017 and
    so recognised as a financial liability at 30 June 2017.

    11 Goodwill

    Goodwill acquired through business combinations has been allocated to
    Cash-Generating Units (CGUs), for impairment testing purposes, on the basis of
    the expected benefit that will accrue to the individual CGU through synergies
    realised from the acquisitions and integration with the Group as a whole. 
    These represent the lowest level within the Group at which goodwill can be
    allocated on a reasonable and consistent basis.

    Following the difficult trading conditions witnessed in 2016 as a result of
    certain economic and political factors and having reviewed the constituent
    businesses and markets in which Capita operates and the underlying assumptions
    used to calculate the value in use for each CGU, goodwill was impaired by £
    66.6m as at 31 December 2016.

    In the 2016 annual financial statements, it was noted that the CGUs impaired in
    the year are the most sensitive to a change in a single or combination of
    assumptions and therefore any deterioration in assumptions would lead to
    further impairment.  In preparing these half year condensed consolidated
    financial statements, the Group undertook a review to identify indicators of
    impairment of goodwill for those CGUs.  Consideration was given to their
    operating performance in 2017 versus the 1 year budget forecast used in
    identifying the cash flows for each CGU during the impairment testing performed
    for the 2016 annual financial statements.  Where this gave rise to an indicator
    of potential impairment, further review was performed.

    No impairments were identified as at 30 June 2017.

    12 Contract fulfilment assets

    In preparing these half year condensed consolidated financial statements, the
    Group undertook a review to identify indicators of impairment of contract
    fulfilment assets.  The Group determined whether or not the contract fulfilment
    assets and capitalised costs to obtain a contract were impaired by comparing
    the carrying amount of the asset to the remaining amount of consideration that
    the Group expects to receive less the costs that relate to providing services
    under the relevant contract. In determining the estimated amount of
    consideration, the Group 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 Appendix 2, 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 KPIs that could trigger
    variable consideration, or service credits.

    No contract fulfilment asset impairments were identified as at 30 June 2017 (31
    December 2016: £nil).

    13 Business combinations

    The Group has made two acquisitions in the period which are shown in aggregate
    below:

                                                                                  Provisional
                                                                                   fair value
                                                                                     to Group
                                                                                             
                                                                                           £m
                                                                                             
    Intangible assets                                                                  5.6   
                                                                                             
    Trade and other receivables < 1 year                                               7.0   
                                                                                             
    Cash and cash equivalents                                                          4.2   
                                                                                             
    Trade and other payables < 1 year                                                 (0.6 ) 
                                                                                             
    Accruals < 1 year                                                                 (2.4 ) 
                                                                                             
    Income tax                                                                        (0.4 ) 
                                                                                             
    Deferred tax                                                                      (1.0 ) 
                                                                                             
    Total identifiable net assets                                                     12.4   
                                                                                             
    Goodwill arising on acquisition                                                    9.4   
                                                                                             
    Total                                                                             21.8   
                                                                                             
    Discharged by:                                                                           
                                                                                             
    Cash consideration paid                                                           15.6   
                                                                                             
    Contingent consideration accrued                                                   6.2   
                                                                                             
    Total consideration                                                               21.8   

    The full exercise to determine the fair value of intangible assets acquired is
    still to be completed, thus the above numbers are provisional. In respect of
    the acquisitions made in 2017, the Group has agreed to pay the vendors
    additional consideration dependent on the achievement of performance targets in
    the periods post-acquisition. These performance periods are of up to 3 years in
    duration and will be settled in cash on their payment date on achieving the
    relevant target. The range of the additional consideration payment is between £
    nil and £7.0m and the Group has included £6.2m as contingent consideration
    related to the additional consideration, which represents its fair value at the
    acquisition date.  The fair value of the contingent consideration has been
    calculated based on the Group's expectation of what it will pay in relation to
    the post-acquisition performance of the acquired entities by weighting the
    probability of a range of payments to give an estimate of the final obligation.

    Further cash consideration was paid in respect of previous acquisitions of £
    7.6m.

    Detail on the total amount of contingent consideration the Group has provided
    as at 30 June 2017 is disclosed in note 16.

    Acquisition related costs

    The Group incurred acquisition related costs of £1.1m related to professional
    fees paid for due diligence, general professional fees and legal related costs.
     These costs have been included in specific items administrative costs in the
    Group's consolidated income statement.

    14 Provisions

                           Restructuring   Business       Asset  Claims and   Property    Other     Total
                               provision       exit    services  litigation  provision                   
                                          provision  settlement   provision                              
                                                      provision                                          
                                                                                                         
                                      £m         £m          £m          £m         £m       £m        £m
                                                                                                         
    At 1 January 2017           49.4          6.0        23.1       41.5       28.0      12.7     160.7  
                                                                                                         
    Utilisation                (15.4 )       (6.7 )      (0.2 )     (6.6 )     (0.6 )    (8.5 )   (38.0 )
                                                                                                         
    Provided/(released)            -         56.4        37.5        0.5       (1.0 )    (1.5 )    91.9  
    in the period - net                                                                                  
                                                                                                         
    Provisions acquired            -            -           -          -       (0.1 )       -      (0.1 )
                                                                                                         
    Transfer to accruals           -            -       (16.1 )        -          -         -     (16.1 )
                                                                                                         
    Transfer to disposal        (0.1 )          -           -          -       (0.3 )       -      (0.4 )
    group                                                                                                
                                                                                                         
    At 30 June 2017             33.9         55.7        44.3       35.4       26.0       2.7     198.0  

    The provisions made above have been shown as current or non-current on the
    balance sheet to indicate the Group's expected timing of the matters reaching
    conclusion.

    Restructuring provision:  the provision is in respect of the cost of the major
    restructuring activities undertaken by the Group commencing in the last quarter
    of 2016.  It represents the cost of reducing role count where there is a
    constructive obligation created through communication to affected employees
    which has crystallised a valid expectation that roles are at risk. 
    Additionally it reflects the onerous nature of property lease provisions (net
    of any sub-letting opportunity) on a discounted basis, where due to the reduced
    requirement for space due to the redundancy programme there is additional
    surplus capacity.  The provision, due to the tail of the property lease
    run-offs, is expected to unwind over 2 years.

    Business exit provision: the provision relates to the cost of exiting
    businesses through disposal or closure, including professional fees related to
    business exits and the costs of separating the businesses being disposed. 
    Refer to note 5 for further detail. The provision is expected to unwind over 2
    years.

    Asset Services settlements:

     1. Arch Cru: the parties to the CF Arch Cru Funds litigation have entered into
        a full and final settlement of the proceedings on confidential terms.
     2. Connaught: the potential costs in resolving matters relating to the
        Connaught Income Series 1 Fund ("The Fund"), of which Capita Financial
        Managers Limited ("CFM") was the Operator until September 2009, when it was
        replaced by an unrelated company as Operator, following which CFM had no
        further involvement with the Fund. The Fund went into liquidation in 2012
        and its liquidator brought a claim against both former Operators, which for
        its part, the Group settled in 2016 for a sum of £18.5m.
       
        The Financial Conduct Authority's (FCA) formal review of the activities of
        both operators is ongoing.  The FCA has recently indicated to the Company
        that it is minded to seek a financial penalty against CFM in connection
        with its conduct as operator of the Fund and to seek redress for the
        substantial losses incurred by all investors when the Fund collapsed three
        years after CFM's involvement, notwithstanding the amount settled during
        2016 as noted above.
       
        The Company is continuing discussions with the FCA in relation to its
        findings in respect of CFM's conduct and the associated potential financial
        penalty.  While these discussions with the FCA take place, provision at
        this time has been made for the full potential amount of the financial
        penalty and associated legal costs. The Company has taken a prudent
        approach to this provision reflecting the early stages of our discussions
        with FCA and the lack of clarity on the basis supporting the FCA's
        position.
       
        In respect of the redress the Board does not consider that the Company is
        liable to pay further sums in addition to the amounts already paid in
        respect of the settled claims and therefore no provision has been made at
        this time.   Based on the information available to date it is not possible
        at this stage to determine what the ultimate outcome of the FCA review
        might be.
         
     3. Capita plc as part of the sale of the Asset Services business has provided
        an indemnity against certain legacy claims. The provisions held, namely the
        Asset Services settlement provision which includes provisions for Arch Cru,
        Connaught and other legacy claims, have therefore been retained within the
        Group and not transferred to held for sale assets.  Legacy claims have been
        settled post the balance sheet date and as the precise value of settlement
        is known, the provision reflects a transfer from provisions to accruals,
        the cash settlement of these claims occurring in July 2017.

    Giving due consideration to these claims, the Group has a provision of £44.3m
    at 30 June 2017 (31 December 2016: £23.1m).

    Claims and litigation provision: in addition to the Asset Services Settlement
    provision the Group is exposed to other claims and litigation.  The Group makes
    a provision when a claim has been made where it is more probable than not that
    a loss might occur.  These provisions are reassessed regularly to ensure that
    the level of provisioning is consistent with the claims that have been
    reported.  The range of values attached to these claims can be significant and
    where obligations are probable and estimable, provisions are made representing
    the Group's best estimate of the expenditure to be incurred. The Group robustly
    defends its position on each claim and they are often settled for amounts
    significantly smaller than the initial claim and may result in no transfer of
    economic benefits.

    In the period the Group has settled a number of insurance liabilities which it
    had provided for in previous years.  Additionally, it has made provision for
    new claims, which originate due to the nature of the Group's operations and
    existing provisions where more information on the progress of the claim has
    become apparent.  The Group's exposure to claims is mitigated by having a
    number of large insurers providing cover for the Group's activities, albeit
    insurance recoveries are only recognised as an asset at the point the recovery
    is virtually certain.  As at 30 June 2017, £5.0m of such assets are held on the
    Group's consolidated balance sheet (31 December 2016: £15.5m).  Due to the
    nature of these claims the Group can not give an estimate of the period over
    which the provision will unwind.

    Property provisions:  includes a discounted provision for the difference
    between the market value of the property leases acquired in 2011 with Ventura
    and Vertex Private Sector and the lease obligations committed to at the date
    the leases were signed by the previous owners. This is in accordance with IFRS
    3 (revised) which requires the use of fair value measurement. The remaining
    property provision is made on a discounted basis for the future rent expense
    and related cost of leasehold property (net of estimated sub-lease income)
    where the space is vacant or currently not planned to be used for ongoing
    operations. The expectation is that this expenditure will be incurred over the
    remaining periods of the leases which range from 1 to 24 years.

    Other provision: relates to provisions in respect of potential claims arising
    due to the nature of some of the operations that the Group provides, and an
    onerous contract provision. These are likely to unwind over a period of 1 to 3
    years.

    15 Additional cash flow information

    Operating cash flow for the 6 months ended 30 June                                        
                                                                                              
                                                                            2017          2016
                                                                                              
                                                               Notes          £m            £m
                                                                                              
    Cash flows from operating activities                                                      
                                                                                              
    Operating profit before interest and taxation from                    62.6          87.3  
    continuing operations                                                                     
                                                                                              
    Adjustment for underlying non-cash items:                                                 
                                                                                              
    Depreciation                                                          33.4          36.0  
                                                                                              
    Amortisation of intangible assets (treated as                          9.9           8.1  
    depreciation)                                                                             
                                                                                              
    Share based payment expense                                            3.5           5.0  
                                                                                              
    Employee benefits                                                      5.4          (1.8 )
                                                                                              
    Adjustment for non-underlying non-cash items:                                             
                                                                                              
    Accelerated depreciation on business closure                 5         1.7             -  
                                                                                              
    Accelerated amortisation on business exit                    5         6.3             -  
                                                                                              
    Amortisation of intangible assets recognised on              7        63.9          72.6  
    acquisition                                                                               
                                                                                              
    Contingent consideration                                     7        (0.1 )         0.6  
                                                                                              
    Non-underlying provisions                                   14        93.4             -  
                                                                                              
    Non-underlying trading                                                (0.5 )           -  
                                                                                              
    Movement in underlying provisions - net                              (32.3 )         0.2  
                                                                                              
    Net movement in payables and receivables                              (5.6 )       147.2  
                                                                                              
    Cash generated from continuing operations before                     241.6         355.2  
    non-underlying cash items1                                                                
                                                                                              
    Income tax refunded/(paid)                                            16.0         (32.0 )
                                                                                              
    Net interest paid                                                    (28.7 )       (29.1 )
                                                                                              
    Purchase of property, plant and equipment                            (30.5 )       (44.5 )
                                                                                              
    Purchase of intangible assets                                        (19.2 )       (35.8 )
                                                                                              
    Free cash flow before non-underlying items                           179.2         213.8  
                                                                                              
    Non-underlying trading                                                 0.5             -  
                                                                                              
    Asset Services insurance recovery received                             9.0             -  
                                                                                              
    Business exit costs paid                                              (6.7 )       (11.3 )
                                                                                              
    Pension settlement paid                                                  -          (3.3 )
                                                                                              
    Free cash flow after non-underlying items                            182.0         199.2  

    1see cash flow statement

    Reconciliation of net cash flow to movement in net debt

                                                                   Non-cash flow movements                        
                                                                                                                  
                                     Net debt  Cash flow Acquisitions   Foreign    Fair Amortisation  Net debt at 
                                         at 1  movements  in 2017      exchange   value of bond           30 June 
                                      January         £m           £m movements changes issue costs         2017  
                                        2017                                 £m      £m £m                     £m 
                                           £m                                                                     
                                                                                                                  
                                                                                                                  
                                                                                                                  
    Cash+                             565.8     36.0           -        (3.2 )      -         -           598.6   
                                                                                                                  
    Loan notes                         (0.3 )      -           -           -        -         -            (0.3 ) 
                                                                                                                  
    Bonds*                         (1,961.7 )   35.0           -        (7.6 )   79.9      (0.6 )      (1,855.0 ) 
                                                                                                                  
    Currency swaps in relation to     357.9        -           -           -    (77.7 )       -           280.2   
    US $ denominated bonds*                                                                                       
                                                                                                                  
    Interest rate swaps in              7.7        -           -           -     (1.2 )       -             6.5   
    relation to GBP denominated                                                                                   
    bonds*                                                                                                        
                                                                                                                  
    Term loan                        (650.0 )   30.0           -           -        -         -          (620.0 ) 
                                                                                                                  
    Finance leases                     (2.3 )    1.8           -           -        -         -            (0.5 ) 
                                                                                                                  
    Total net liabilities from     (2,248.7 )   66.8           -        (7.6 )    1.0      (0.6 )      (2,189.1 ) 
    financing activities                                                                                          
                                                                                                                  
    Underlying net debt            (1,682.9 )  102.8           -       (10.8 )    1.0      (0.6 )      (1,590.5 ) 
                                                                                                                  
    Fixed rate interest rate swaps    (85.1 )   84.6           -           -      0.5         -               -   
                                                                                                                  
    Deferred consideration            (10.8 )    5.8           -           -        -         -            (5.0 ) 
                                                                                                                  
                                   (1,778.8 )  193.2           -       (10.8 )    1.5      (0.6 )      (1,595.5 ) 

    +  Cash comprises cash, cash equivalents and overdrafts.  Included in
    overdrafts on the Group's consolidated balance sheet are balances totalling £
    577.3m (2016: £532.5m) held in the Group's notional cash pools under which the
    bank has the right of offset against cash at bank of the same amount.

    *  The aggregate bond fair value above of £1,855.0m (30 June 2016: £1,843.1m)
    includes the GBP value of the US$ denominated bonds. To remove the Group's
    exposure to currency fluctuations it has entered into currency swaps which
    effectively hedge the movement in the underlying bond fair value. The interest
    rate swaps are being used to hedge the exposure to changes in the fair value of
    GBP denominated bonds. The sum of these items held at fair value equates to the
    underlying value of the Group's bond debt of £1,568.3m (30 June 2016: £
    1,491.2m).

    In June 2017, the Group repaid USD$50m of Series A bonds at maturity,
    equivalent to £33.8m.  Of the Group's bond debt, £90.3m matures in the next 12
    months and the remainder at various maturities to 2027. In February 2017, the
    Group elected to terminate all of its fixed rate interest rate swaps. In the
    period ended 30 June 2017, the Group prepaid £30m on a term loan. Of the
    remaining outstanding term loans of £620m, having agreed amendments and
    extensions, £520m now matures in September 2018 and £100m matures in May 2019.
    In addition as at 30 June 2017, the Group has available to it a committed
    Revolving Credit Facility of £600m of which £81m matures in August 2020 and £
    519m matures in August 2021. This facility is available for the Group's
    immediate use and £nil was drawn down at 30 June 2017.

                                                                Non-cash flow movements                       
                                                                                                              
                                  Net debt  Cash flow Acquisitions   Foreign     Fair Amortisation   Net debt 
                                      at 1  movements      in 2016  exchange    value      of bond at 30 June 
                                   January         £m           £m movements changes  issue costs       2016  
                                      2016                                £m       £m           £m         £m 
                                        £m                                                                    
                                                                                                              
                                                                                                              
                                                                                                              
    Cash+                           85.3    405.7          -          8.9         -          -        499.9   
                                                                                                              
    Bonds*                      (1,749.4 )   70.0          -        (31.1 )  (132.3 )     (0.3 )   (1,843.1 ) 
                                                                                                              
    Currency swaps in relation     213.9        -          -            -     128.7          -        342.6   
    to US $ denominated bonds*                                                                                
                                                                                                              
    Interest rate swaps in           6.9        -          -            -       2.4          -          9.3   
    relation to GBP denominated                                                                               
    bonds*                                                                                                    
                                                                                                              
    Term loan                     (300.0 ) (500.0 )        -            -         -          -       (800.0 ) 
                                                                                                              
    Finance leases                  (7.0 )    2.4       (0.8 )          -         -          -         (5.4 ) 
                                                                                                              
    Total net liabilities from  (1,835.6 ) (427.6 )     (0.8 )      (31.1 )    (1.2 )     (0.3 )   (2,296.6 ) 
    financing activities                                                                                      
                                                                                                              
    Underlying net debt         (1,750.3 )  (21.9 )     (0.8 )      (22.2 )    (1.2 )     (0.3 )   (1,796.7 ) 
                                                                                                              
    Fixed rate interest rate       (67.0 )      -          -            -     (22.8 )        -        (89.8 ) 
    swaps                                                                                                     
                                                                                                              
    Deferred consideration         (21.5 )    6.7          -            -         -          -        (14.8 ) 
                                                                                                              
                                (1,838.8 )  (15.2 )     (0.8 )      (22.2 )   (24.0 )     (0.3 )   (1,901.3 ) 

    16 Financial instruments

    Carrying values and fair values of financial instruments

    The following table analyses by classification and category the Group's
    financial instruments (excluding short term debtors, creditors, fund payables/
    receivables and cash in hand) that are carried in the financial statements. The
    values below represent the carrying amounts. The fair values are the same as
    the carrying values other than twelve fixed rate bonds totalling £601.0m (31
    December 2016: £593.1m), included below in the bond value of £1,855.0m (31
    December 2016: £1,961.7m), with a carrying value of £601.0m (31 December 2016:
    £593.1m) and a fair value of £632.9m (31 December 2016: £616.9m).

    As at 30 June 2017                   Available-for-sale    At fair   Loans and  Derivatives        Other     Total
                                                                 value receivables     used for    financial          
                                                               through                  hedging  liabilities          
                                                            the income                                                
                                                             statement                                                
                                                                                                                      
                                                         £m         £m          £m           £m           £m        £m
                                                                                                                      
    Financial assets                                                                                                  
                                                                                                                      
    Unlisted equity securities              2.3                    -          -           -           -           2.3 
                                                                                                                      
    Investment loan                           -                    -        5.0           -           -           5.0 
                                                                                                                      
    Investment                                -                    -        4.0           -           -           4.0 
                                                                                                                      
    Deferred consideration receivable         -                    -       14.0           -           -          14.0 
                                                                                                                      
    Insurance asset recoverable               -                    -        5.0           -           -           5.0 
                                                                                                                      
    Cash flow hedges                          -                    -          -         8.7           -           8.7 
                                                                                                                      
    Non-designated foreign exchange           -                  7.5          -           -           -           7.5 
    forwards and swaps                                                                                                
                                                                                                                      
    Interest rate swaps in relation to        -                    -          -         6.5           -           6.5 
    GBP denominated bonds                                                                                             
                                                                                                                      
    Currency swaps in relation to USD         -                    -          -       285.8           -         285.8 
    denominated bonds                                                                                                 
                                                                                                                      
                                            2.3                  7.5       28.0       301.0           -         338.8 
                                                                                                                      
    Financial liabilities                                                                                             
                                                                                                                      
    Overdrafts                                -                    -          -           -       577.3         577.3 
                                                                                                                      
    Unsecured loan notes                      -                    -          -           -         0.3           0.3 
                                                                                                                      
    Bonds                                     -                    -          -           -     1,855.0       1,855.0 
                                                                                                                      
    Term loan                                 -                    -          -           -       620.0         620.0 
                                                                                                                      
    Cash flow hedges                          -                    -          -         3.1           -           3.1 
                                                                                                                      
    Non-designated foreign exchange           -                  1.7          -           -           -           1.7 
    forwards and swaps                                                                                                
                                                                                                                      
    Foreign exchange swaps held for           -                    -          -         0.1           -           0.1 
    foreign net investment                                                                                            
                                                                                                                      
    Currency swaps in relation to USD         -                    -          -         5.6           -           5.6 
    denominated bonds                                                                                                 
                                                                                                                      
                                                                                                                      
    Contingent consideration                  -                    -          -           -        27.0          27.0 
                                                                                                                      
    Deferred consideration                    -                    -          -           -         5.0           5.0 
                                                                                                                      
    Obligations under finance leases          -                    -          -           -         0.5           0.5 
                                                                                                                      
    Public sector subsidiary partnership      -                    -          -           -        55.1          55.1 
    payment                                                                                                           
                                                                                                                      
    Put options of non-controlling            -                    -          -           -       107.8         107.8 
    interests                                                                                                         
                                                                                                                      
    Dividends declared                        -                    -          -           -       137.1         137.1 
                                                                                                                      
                                              -                  1.7          -         8.8     3,385.1       3,395.6 

       

    As at 31 December 2016               Available-for-sale    At fair   Loans and  Derivatives        Other     Total
                                                                 value receivables     used for    financial          
                                                               through                  hedging  liabilities          
                                                            the income                                                
                                                             statement                                                
                                                                                                                      
                                                         £m         £m          £m           £m           £m        £m
                                                                                                                      
    Financial assets:                                                                                                 
                                                                                                                      
    Available-for-sale assets               5.6                    -          -           -           -           5.6 
                                                                                                                      
    Investment loan                           -                    -        5.0           -           -           5.0 
                                                                                                                      
    Investment                                -                    -        4.0           -           -           4.0 
                                                                                                                      
    Deferred consideration                    -                    -       17.0           -           -          17.0 
                                                                                                                      
    Insurance asset recoverable               -                    -       15.5           -           -          15.5 
                                                                                                                      
    Cash flow hedges                          -                    -          -         7.0           -           7.0 
                                                                                                                      
    Non-designated foreign exchange           -                  7.4          -           -           -           7.4 
    forwards and swaps                                                                                                
                                                                                                                      
    Interest rate swaps in relation to        -                    -          -         7.7           -           7.7 
    GBP denominated bonds                                                                                             
                                                                                                                      
    Currency swaps in relation to USD         -                    -          -       361.0           -         361.0 
    denominated bonds                                                                                                 
                                                                                                                      
                                            5.6                  7.4       41.5       375.7           -         430.2 
                                                                                                                      
    Financial liabilities:                                                                                            
                                                                                                                      
    Overdraft                                 -                    -          -           -       532.5         532.5 
                                                                                                                      
    Unsecured loan notes                      -                    -          -           -         0.3           0.3 
                                                                                                                      
    Bonds                                     -                    -          -           -     1,961.7       1,961.7 
                                                                                                                      
    Term loan                                 -                    -          -           -       650.0         650.0 
                                                                                                                      
    Cash flow hedges                          -                    -          -         4.2           -           4.2 
                                                                                                                      
    Non-designated foreign exchange           -                  3.3          -           -           -           3.3 
    forwards and swaps                                                                                                
                                                                                                                      
    Foreign exchange swaps held for           -                    -          -         0.1           -           0.1 
    foreign net investment                                                                                            
                                                                                                                      
    Currency swaps in relation to USD         -                    -          -         3.1           -           3.1 
    denominated bonds                                                                                                 
                                                                                                                      
                                                                                                                      
    Contingent consideration                  -                    -          -           -        23.0          23.0 
                                                                                                                      
    Deferred consideration                    -                    -          -           -        10.8          10.8 
                                                                                                                      
    Obligations under finance leases          -                    -          -           -         2.3           2.3 
                                                                                                                      
    Public sector subsidiary partnership      -                    -          -           -        58.8          58.8 
    payment                                                                                                           
                                                                                                                      
    Put options of non-controlling            -                    -          -           -       115.9         115.9 
    interests                                                                                                         
                                                                                                                      
    Fixed rate interest rate swaps            -                 85.1          -           -           -          85.1 
                                                                                                                      
                                              -                 88.4          -         7.4     3,355.3       3,451.1 

    The fair value of financial instruments has been calculated by discounting the
    expected future cash flows at prevailing interest rates, except for unlisted
    equity securities and investment loans. The valuation models incorporate
    various inputs including foreign exchange spot and forward rates and interest
    rate curves. Unlisted equity securities and investment loans are held at
    amortised cost. The Group enters into derivative financial instruments with
    multiple counterparties, all of which are financial institutions with
    investment grade credit ratings.

    Fair value hierarchy

    The Group uses the following hierarchy for determining and disclosing the fair
    value of financial instruments by valuation technique:

    Level 1: quoted (unadjusted) prices in active markets for identical assets or
    liabilities

    Level 2: other techniques for which all inputs which have a significant effect
    on the recorded fair value are observable, either directly or indirectly

    Level 3: techniques which use inputs which have a significant effect on the
    recorded fair value that are not based on observable market data.

    As at 30 June 2017, the Group held the following financial instruments measured
    at fair value:

                                                                          30 June         31
                                                                             2017   December
                                                                                        2016
                                                                                            
                                                                               £m         £m
                                                                                            
    Assets measured at fair value                                                           
                                                                                            
    Cash flow hedges                                                         8.7        7.0 
                                                                                            
    Non-designated foreign exchange forwards and swaps                       7.5        7.4 
                                                                                            
    Interest rate swaps in relation to GBP denominated bonds                 6.5         7.7
                                                                                            
    Currency swaps in relation to USD denominated bonds                    285.8       361.0
                                                                                            
                                                                           308.5       383.1
                                                                                            
    Liabilities measured at fair value                                                      
                                                                                            
    Bonds                                                                1,254.0     1,368.6
                                                                                            
    Cash flow hedges                                                         3.1         4.2
                                                                                            
    Non-designated foreign exchange forwards and swaps                       1.7         3.3
                                                                                            
    Foreign exchange swaps held for foreign net investment                   0.1        0.1 
                                                                                            
    Currency swaps in relation to USD denominated bonds                      5.6         3.1
                                                                                            
    Fixed rate interest rate swaps                                             -        85.1
                                                                                            
    Public sector subsidiary partnership payment                            55.1        58.8
                                                                                            
    Put options of non-controlling interests                               107.8       115.9
                                                                                            
    Contingent consideration                                                27.0        23.0
                                                                                            
                                                                         1,454.4     1,662.1

    During both periods the Group only had Level 2 assets or liabilities measured
    at fair value apart from contingent consideration, the public sector subsidiary
    partnership payment and the put options of non-controlling interests which are
    Level 3 liabilities. It is the Group's policy to recognise transfers between
    levels of the fair value hierarchy at the end of the reporting period during
    which the transfer occurred. During the 6 months ended 30 June 2017, there were
    no transfers between Level 1 and Level 2 fair value measurements and no
    transfers into or out of Level 3 fair value measurements.

    Contingent consideration arises in business acquisitions where the Group has
    agreed to pay the vendors additional consideration dependent on the achievement
    of performance targets in the periods post-acquisition. These performance
    periods are of up to 3 years  in duration and will be settled in cash on their
    payment date on achieving the performance criteria. The Group makes provision
    for such contingent consideration for each acquisition based on an assessment
    of its fair value at the acquisition date. Contingent consideration has been
    calculated based on the Group's expectation of what it will pay in relation to
    the post-acquisition performance of the acquired entities by weighting the
    probability of a range of payments to give an estimate of the final
    obligation.  A sensitivity analysis was performed on the expected contingent
    consideration of £27.0m. The sensitivity analysis performed adjusted the
    probability of payment of the contingent amounts. A 10% increase in the
    probability of contingent consideration being paid results in an increase in
    potential contingent consideration of £3.9m. A 10% decrease in the probability
    of the contingent consideration being paid results in a decrease in potential
    contingent consideration of £3.3m.

    The public sector subsidiary partnership payment liability is an estimate of
    the annual preferred payments to be made by Axelos Limited (the partnership
    formed with the Cabinet Office) to the Cabinet Office in years 2017 to 2023.
    This payment is funded by Axelos Limited and is contingent on profits. The fair
    value has been derived by discounting the expected payment at the Group cost of
    debt to arrive at its present value. If the discount rate was to increase/
    decrease by 1% the present value would decrease/increase by £2.0m.

    The put options of the non-controlling interests are measured at amortised cost
    based on the expected redemption value of the shares that will be paid in cash
    by the Group.  This value is determined by reference to the expected date of
    exercise of the options, which is then discounted to arrive at a present
    value.  The sensitivity of the valuation to movements in both the discount rate
    and the cash flows that have been used to calculate it, are as follows: a 10%
    increase/decrease in the earnings potential of the business results in a £10.7m
    increase/decrease in the valuation; a 1% increase/decrease in the discount rate
    applied to the valuation results in a £2.0m decrease/£2.0m increase in the
    valuation.

    The following table shows the reconciliation from the opening balances to the
    closing balances for level 3 fair values:

                                                                 Contingent   Subsidiary   Put options of
                                                              consideration  partnership  non-controlling
                                                                                 payment        interests
                                                                                                         
                                                                         £m           £m               £m
                                                                                                         
    At 1 January 2017                                            23.0           58.8        115.9        
                                                                                                         
    Arising from business combinations in the period              6.2              -            -        
                                                                                                         
    Profit and loss movement - administrative expenses           (0.1 )            -            -        
                                                                                                         
    Discount unwind - net finance costs                             -            1.0            -        
                                                                                                         
    Movement of put options recognised in equity                    -              -         (8.1 )      
                                                                                                         
    Utilised                                                     (2.1 )         (4.7 )          -        
                                                                                                         
    At 30 June 2017                                              27.0           55.1        107.8        

    17 Capital commitments

    At 30 June 2017, amounts contracted for but not provided in the financial
    statements for the acquisition of property, plant and equipment amounted to £
    7.5m (31 December 2016: £10.0m).

    18 Related party transactions

    Transactions between the Company and its subsidiaries, which are related
    parties, have been eliminated on consolidation and are not disclosed in this
    note.

    Compensation of key management personnel (including Directors of the parent
    company):

                                                                          6 months 6 months
                                                                           30 June  30 June
                                                                              2017     2016
                                                                                           
                                                                                £m       £m
                                                                                           
    Short term employment benefits                                             4.2      3.5
                                                                                           
    Post employment benefits                                                   0.2      0.1
                                                                                           
    Share based payments                                                       0.4      2.4
                                                                                           
                                                                              4.8       6.0
                                                                                           

    Gains on share options exercised in the period by key management personnel
    totalled £0.4m (30 June 2016: £9.9m).

    The following companies are substantial shareholders in the Company and
    therefore a related party of the Company (in each case, for the purposes of the
    Listing Rules of the UK Listing Authority). The number of shares held on 15
    September 2017 was as below:

    Shareholder                                                       No. of    % of voting
                                                                      shares      rights   
                                                                                           
    Veritas Asset Management LLP                                    92,861,962    13.91%   
                                                                                           
    Invesco Asset Management                                        59,067,929     8.85%   
                                                                                           
    Woodford Investment Management LLP                              56,727,196     8.50%   
                                                                                           
    The Capital Group Companies, Inc.                               52,017,183     7.79%   
                                                                                           
    Baillie Gifford & Co Limited                                    48,627,828     7.29%   
                                                                                           
    BlackRock, Inc.                                                 47,468,674     7.11%   
                                                                                           
    T. Rowe Price                                                   25,441,630     3.81%   
                                                                                           
    Marathon Asset Management LLP                                   22,093,405     3.31%   

    19 Contingent liabilities

    The Group has provided, through the normal course of its business, performance
    bonds and bank guarantees of £91.1m (31 December 2016: £91.7m).

    One of the Group's major life and pensions clients is conducting a strategic
    review, the outcome of which is uncertain but could result in the continuation
    of the contract with amended terms or the termination of the contract.  If the
    operation is terminated, the Group will incur associated costs, including the
    costs of transferring the service provided, and the impairment of associated
    contract assets, off-set by the release of contract liabilities.  As the
    outcome of the client's review is uncertain, the Group has not made any
    provision for a future outflow of funds or for any asset impairments that might
    result from the eventual outcome.  The review is expected to conclude in 2017
    and any outflow of funds will likely be in late 2017 or early 2018.

    Further narrative on contingent liabilities, specifically in regard to the
    Connaught Fund matter, can be seen in note 14.

    INDEPENDENT REVIEW REPORT TO CAPITA PLC

    Conclusion

    We have been engaged by the company to review the condensed set of financial
    statements in the half-yearly financial report for the six months ended 30 June
    2017 which comprises the condensed consolidated income statement, condensed
    consolidated statement of comprehensive income, condensed consolidated balance
    sheet, condensed consolidated statement of changes in equity, condensed
    consolidated cash flow statement and the related explanatory notes.

    Based on our review, nothing has come to our attention that causes us to
    believe that the condensed set of financial statements in the half-yearly
    financial report for the six months ended 30 June 2017 is not prepared, in all
    material respects, in accordance with IAS 34 Interim Financial Reporting as
    adopted by the EU and the Disclosure Guidance and Transparency Rules ("the
    DTR") of the UK's Financial Conduct Authority ("the UK FCA").

    Scope of review

    We conducted our review in accordance with International Standard on Review
    Engagements (UK and Ireland) 2410 Review of Interim Financial Information
    Performed by the Independent Auditor of the Entity issued by the Auditing
    Practices Board for use in the UK.  A review of interim financial information
    consists of making enquiries, primarily of persons responsible for financial
    and accounting matters, and applying analytical and other review procedures. 
    We read the other information contained in the half-yearly financial report and
    consider whether it contains any apparent misstatements or material
    inconsistencies with the information in the condensed set of financial
    statements.

    A review is substantially less in scope than an audit conducted in accordance
    with International Standards on Auditing (UK) and consequently does not enable
    us to obtain assurance that we would become aware of all significant matters
    that might be identified in an audit.  Accordingly, we do not express an audit
    opinion.

    Whilst the company has previously produced a half-yearly report containing a
    condensed set of financial statements, those financial statements have not
    previously been subject to a review by an independent auditor. As a
    consequence, the review procedures set out above have not been performed in
    respect of the comparative period for the six months ended 30 June 2016.

    Directors' responsibilities

    The half-yearly financial report is the responsibility of, and has been
    approved by, the directors.  The directors are responsible for preparing the
    half-yearly financial report in accordance with the DTR of the UK FCA.

    As disclosed in note 1, the annual financial statements of the group are
    prepared in accordance with International Financial Reporting Standards as
    adopted by the EU.  The directors are responsible for preparing the condensed
    set of financial statements included in the half-yearly financial report in
    accordance with IAS 34 as adopted by the EU.

    Our responsibility

    Our responsibility is to express to the company a conclusion on the condensed
    set of financial statements in the half-yearly financial report based on our
    review.

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

    This report is made solely to the company in accordance with the terms of our
    engagement to assist the company in meeting the requirements of the DTR of the
    UK FCA.  Our review has been undertaken so that we might state to the company
    those matters we are required to state to it in this report and for no other
    purpose.  To the fullest extent permitted by law, we do not accept or assume
    responsibility to anyone other than the company for our review work, for this
    report, or for the conclusions we have reached.

    Robert Brent

    for and on behalf of KPMG LLP

    Chartered Accountants

    15 Canada Square

    London

    E14 5GL

    20 September 2017

    Statement of Directors' responsibilities

    The Directors confirm, to the best of their knowledge, that this condensed set
    of financial statements has been prepared in accordance with IAS 34 as adopted
    by the European Union and that the Half Year Management Report includes a fair
    review of the information required by Rules 4.2.4, 4.2.7 and 4.2.8 of the
    Disclosure and Transparency Rules of the United Kingdom Financial Conduct
    Authority.

    The names and functions of the Directors of Capita plc are as listed in the
    Group's Annual Report for 2016. A list of current Directors is maintained on
    the Group website: www.capita.com.

    By order of the Board

    A N Greatorex

    Interim Chief Executive & Group Finance Director

    20 September 2017

    Appendix 1 - Alternative Performance Measures (APMs) used in the half yearly
    report for the 6 months to 30 June 2017

    The Group presents various APMs as the Directors believe that these are useful
    for users of the financial statements in helping to provide a balanced view of,
    and relevant information on, the Group's financial performance, position and
    cash flows. These APMs are mainly measures which disclose the 'underlying'
    performance of the Group excluding specific items which are regarded as
    non-underlying.

    The Group separately presents intangible amortisation, asset impairments,
    acquisition contingent consideration movements, acquisition expenses, the
    financial impact of business exits or businesses in the process of being
    exited, movements in the mark to market valuation of certain financial
    instruments and other specific items in the income statement which, in the
    Directors' judgement, need to be disclosed separately (see notes 5, 6 and 7) by
    virtue of their nature, size and incidence in order for users of the financial
    statements to obtain a proper understanding of the financial information and
    the underlying performance of the business.

    In addition, the Group presents other APMs including Key Performance Indicators
    (KPIs) such as return on capital employed and interest cover by which we
    monitor our performance and others such as organic and acquisition revenue
    growth which provide useful information to users which is not otherwise readily
    available from the financial statements.

    APMs presented                         2017        2016 % change   Source or calculation     
                                                 (restated)                                      
                                                                                                 
    Revenue                                                                                      
                                                                                                 
    Total revenue as reported              £ m  £2,155.9 m   (1.3)%    Line item in income       
                                     2,127.3                           statement                 
                                                                                                 
    2016 disposals reported H1            £- m    (£24.6 m)            Line item in income       
    2016                                                               statement                 
                                                                                                 
    2017 disposals                    (£61.4 m)       £- m                                       
                                                                                                 
    Underlying revenue                     £ m  £2,131.3 m   (3.1)%                              
                                     2,065.9                                                     
                                                                                                 
    2016 disposals reclassed              £- m     £16.5 m                                       
    from business exit in H2                                                                     
                                                                                                 
    2017 disposals                        £- m   (£101.9 m)            Line item in income       
                                                                       statement                 
                                                                                                 
    Underlying revenue on a                £ m  £2,045.9 m    1.0%     Underlying revenue        
    like-for-like basis              2,065.9                           excluding businesses      
                                                                       exited                    
                                                                                                 
    2016 acquisitions                  (24.0 )      £0.0 m   (1.2)%    Additional contribution in
                                                                       H1 2017 of acquisitions   
                                                                       acquired in 2016          
                                                                                                 
    2017 acquisitions                   (6.5 )      £0.0 m   (0.3)%    Contribution in H1 2017 of
                                                                       acquisitions acquired in  
                                                                       2017                      
                                                                                                 
    Underlying organic revenue             £ m  £2,045.9 m   (0.5)%    Underlying revenue        
                                     2,035.4                           excluding businesses      
                                                                       exited                    
                                                                                                 
    Profit                                                                                       
                                                                                                 
    Operating profit from              £62.6 m     £87.3 m  (28.3)%    Line item in income       
    continuing operations as                                           statement                 
    reported                                                                                     
                                                                                                 
    Business exit                      £63.9 m        £- m             Line item in income       
                                                                       statement                 
                                                                                                 
    Specific items                    £101.9 m     £78.7 m             Line item in income       
                                                                       statement                 
                                                                                                 
    Underlying operating profit       £228.4 m    £166.0 m   37.6%     Line item in income       
    from continuing operations                                         statement                 
                                                                                                 
    Businesses held for sale                n/a    (£5.6 m)            Businesses reported in H1 
    like-for-like comparison                                           2016 as underlying        
                                                                       reported in H1 2017 as    
                                                                       non-underlying            
                                                                                                 
    Like-for-like operating             £228.4m   £160.4 m   42.4%     Underlying operating      
    profit                                                             profit excluding          
                                                                       businesses exited         
                                                                                                 
    Underlying profit before tax      £195.0 m    £133.7 m   45.8%     Line item on income       
    from continuing operations                                         statement                 
                                                                                                 
    Underlying operating margin         11.1  %      7.8  %            Calculation (underlying   
                                                                       operating profit/         
                                                                       underlying revenue)       
                                                                                                 
    Like-for-like operating             11.2  %      7.8  % 340 b.p.   Calculation (like-for-like
    margin                                                             operating profit/         
                                                                       like-for-like underlying  
                                                                       revenue)                  
                                                                                                 
    Profit before tax from             £27.6 m     £37.2 m  (25.8)%    Line item in income       
    continuing operations as                                           statement                 
    reported                                                                                     
                                                                                                 
    Underlying profit before tax      £195.0 m    £133.7 m   45.8%     Line item in income       
    from continuing operations                                         statement                 
                                                                                                 
    Basic earnings per share            (0.11)p       4.66p (102.4)%   Line item in income       
    from continuing operations                                         statement                 
    as reported                                                                                  
                                                                                                 
    Underlying earnings per              22.92p      16.12p  42.2%     Line item in income       
    share                                                              statement and note 9      
                                                                                                 
    Cash flow                                                                                    
                                                                                                 
    Cash generated by continuing        £241.6m   £355.2 m  (32.0)%    Line item in note 15 -    
    operations before                                                  additional cash flow      
    non-underlying cash items                                          information               
                                                                                                 
    Underlying free cash flow           £179.2m     £213.8m (16.2)%    Line item in note 15 -    
    from continuing operations                                         additional cash flow      
                                                                       information               
                                                                                                 
    Free cash flow after                £182.0m     £199.2m  (8.6)%    Line item in note 15 -    
    non-underlying items from                                          additional cash flow      
    continuing operations                                              information               

       

    APMs presented (continued)                  2017        2016   Source or calculation    
                                                             (as                            
                                                     reported† )                            
                                                                                            
    Gearing                                                                                 
                                                                                            
    Annualised underlying EBIT             £482.8 m    £667.8 m    This is underlying       
                                                                   operating profit. To     
                                                                   arrive at an annualised  
                                                                   figure, HY1 results are  
                                                                   added to the prior year's
                                                                   HY2 results which can be 
                                                                   deduced by subtracting   
                                                                   the prior year's HY1     
                                                                   results from the FY      
                                                                   results.                 
                                                                                            
    Deduct: non-controlling                (£14.8 m)   (£12.6 m)   Annualised result from   
    interest                                                       income statement before  
                                                                   tax charge               
                                                                                            
    Deduct: acquisition costs               (£4.6 m)   (£13.0 m)   Annualised result from   
                                                                   line item in note 7      
                                                                                            
    Add back: share based                      £- m     £11.0 m    Annualised result from   
    payment expense                                                line item in note 15 -   
                                                                   expense only             
                                                                                            
    Add back: disposal of                    £0.8 m     (£1.5 m)   Annualised results from  
    non-current assets                                             line item in note 15     
                                                                                            
    Add back: non-current                    £2.8 m      £2.4 m                             
    service pension charge                                                                  
                                                                                            
    Annualised adjusted EBIT       a       £467.0 m    £654.1 m                             
                                                                                            
    Add back: pre-acquisition                £1.4 m     £17.8 m                             
    underlying profit                                                                       
                                                                                            
    Annualised adjusted EBIT               £468.4 m    £671.9 m                             
                                                                                            
    Depreciation and                        £99.5 m     £95.3 m    Line items per cash flow 
    amortisation                                                                            
                                                                                            
    Annualised adjusted EBITDA     b       £567.9 m    £767.2 m                             
                                                                                            
    Underlying net interest                 £33.4 m     £32.3 m    Line item in income      
    charge                                                         statement                
                                                                                            
    Interest charge                         (£4.7 m)    (£3.2 m)   Line item in note 8      
    attributable to pensions                                                                
                                                                                            
    Borrowing costs                         £28.7 m     £29.1 m    Calculation (underlying  
                                                                   interest charge excluding
                                                                   pension interest)        
                                                                                            
    Annualised underlying          c        £59.6 m     £55.5 m    To arrive at an          
    interest charge                                                annualised figure, HY1   
                                                                   results are added to the 
                                                                   prior year's HY2 results 
                                                                   which can be deduced by  
                                                                   subtracting the prior    
                                                                   year's HY1 results from  
                                                                   the FY results.          
                                                                                            
    Equity attributable to         d       £408.2 m    £679.3 m    Last reported December   
    shareholders                                                   shareholders funds       
                                                                                            
    15% of equity attributable     e        £61.2 m    £101.9 m    Calculation (d x 15%),   
    to shareholders                                                minimum £nil             
                                                                                            
    Contingent obligations         f          £91.1m      £88.1m                            
    under bonds and guarantees                                                              
                                                                                            
                                   g        £29.9 m        £0.0m   If f>e, the difference is
                                                                   treated as debt          
                                                                                            
    Net debt                       h      1,595.5 m  £1,901.3 m    Line item in note 13     
                                                                                            
    Adjusted net debt              i     £1,625.4 m  £1,901.3 m    Calculation (g + h)      
                                                                                            
    Annualised underlying                     7.8 x      11.8 x    Calculation (a / c)      
    interest cover                                                                          
                                                                                            
    Annualised adjusted net                  2.86 x      2.48 x    Calculation i / b)       
    debt to Annualised adjusted                                                             
    EBITDA ratio                                                                            
                                                                                            
                                                                   † Prior period debt      
                                                                   covenants are not        
                                                                   required to be restated  
                                                                                            
                                                         (Dec 16                            
                                                       restated)                            
                                                                                            
    Return on capital employed                                                              
    (ROCE)                                                                                  
                                                                                            
    Underlying operating profit    A          £457.0      £394.6   Annualised underlying    
                                                                   operating profit, per    
                                                                   Note 4                   
                                                                                            
    Tax rate                       B         18.5  %     18.5  %                            
                                                                                            
    Tax                         C = A x       £84.5m      £73.0m   Calculation (underlying  
                                   B                               profit multiply tax rate)
                                                                                            
    Underlying operating profit D = A -      £372.5m     £321.6m   Calculation (underlying  
    after tax                      C                               profit less tax)         
                                                                                            
    Current period net assets      E       (£668.3m)   (£552.9m)   Line item in balance     
                                                                   sheet                    
                                                                                            
    Current period underlying      F       £1,590.5m   £1,682.9m   Line item in note 15 -   
    net debt                                                       additional cash flow     
                                                                   information              
                                                                                            
    Adjustments to capita          G       £1,385.9m   £1,226.8m   Includes post-tax impact 
    employed                                                       of accumulated acquired  
                                                                   intangible amortisation, 
                                                                   fixed rate swaps, put    
                                                                   options and pensions     
                                                                                            
                                  H =      £2,308.1m   £2,356.8m   Used in 2017 average     
                                 E+F+G                             capital employed         
                                                                                            
    Less acquisition spend in      I        (£19.8m)    (£89.5m)   Consideration paid - cash
    the period                                                     acquired + debt acquired,
                                                                   per note 13              
                                                                                            
    Current period capital      M1 = I H   £2,288.3m   £2,267.3m                            
    employed                                                                                
                                                                                            
    Prior period net assets        J       (£337.3m)   (£189.0m)                            
                                                                                            
    Prior period underlying net    K       £1,796.7m   £1,750.3m                            
    debt                                                                                    
                                                                                            
    Comparative prior period       L       £1,129.9m   £1,046.2m   Includes post-tax impact 
    adjustments                                                    of accumulated acquired  
                                                                   intangible amortisation, 
                                                                   fixed rate swaps, put    
                                                                   options and pensions     
                                                                                            
    Prior period capital          M2 =     £2,589.3m   £2,607.5m                            
    employed                     J+K+L                                                      
                                                                                            
    Average capital employed      N =      £2,438.8m   £2,437.4m                            
    pre-acquisitions            (M1+M2)/                                                    
                                   2                                                        
                                                                                            
    Weighted average               O          £12.8m      £59.7m   Pro-rata no. of months   
    acquisition spend in the                                       post-acquisition profit  
    period                                                                                  
                                                                                            
    Average capital employed    P = N+O    £2,451.6m   £2,497.1m                            
                                                                                            
    ROCE                        Q = D /      15.2  %     12.9  %                            
                                   P                                                        

    Appendix 2 - Financial statements restatement under IFRS 15

    The Group early adopted IFRS 15 Revenue from Contracts with Customers ("IFRS
    15") on 1 January 2017 using the full retrospective method. This appendix
    details the Group's new accounting policy for revenue and shows the impact of
    the adoption of IFRS 15 on the Group's primary financial statements.

    The cumulative effect of the adoption of IFRS 15 has resulted in a decrease in
    net assets of £942.3 million as at 1 January 2016 (31 December 2016: £
    1,036.3million).  This reflects an important change in accounting policy as the
    Group moves from one based predominantly on percentage of completion revenue
    recognition to a methodology that is focused on aligning revenue recognition to
    the delivery of solutions and value to its customers.

    Accounting policy for revenue

    The Group generates revenue largely in the UK and Europe.

    The Group operates a number of diverse businesses and accordingly applies a
    variety of methods for revenue recognition, based on the principles set out in
    IFRS 15.  Many of the contracts entered into are long term and complex in
    nature given the breadth of solutions the Group offers.

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

    In determining the amount of revenue and profits to record, and related balance
    sheet items (such as contract fulfilment assets, capitalisation of costs to
    obtain a contract, trade receivables, accrued income and deferred income) to
    recognise in the period, management is required to form a number of key
    judgements and assumptions. This includes an assessment of the costs the Group
    incurs to deliver the contractual commitments and whether such costs should be
    expensed as incurred or capitalised. These judgements are inherently subjective
    and may cover future events such as the achievement of contractual milestones,
    performance KPIs and planned cost savings. In addition, for certain contracts,
    key assumptions are made concerning contract extensions and amendments, as well
    as opportunities to use the contract developed systems and technologies on
    other similar projects.

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

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

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

    For contracts with multiple components to be delivered such as transformation,
    transitions and the delivery of outsourced services, management applies
    judgement to consider whether those promised goods and services are (i)
    distinct - to be accounted for as separate performance obligations; (ii) not
    distinct - to be combined with other promised goods or services until a bundle
    is identified that is distinct or (iii) part of a series of distinct goods and
    services that are substantially the same and have the same pattern of transfer
    to the customer.

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

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

    Once the total transaction price is determined, the Group allocates this to the
    identified performance obligations in proportion to their relative stand-alone
    selling prices and recognises revenue when (or as) those performance
    obligations are satisfied.  The Group infrequently sells standard products with
    observable standalone prices due to the specialised services required by
    customers and therefore the Group applies judgement to determine an appropriate
    standalone selling price. More frequently, the Group sells a customer bespoke
    solution, and in these cases the Group typically uses the expected cost plus
    margin or a contractually stated price approach to estimate the standalone
    selling price of each performance obligation.

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

    For each performance obligation, the Group determines if revenue will be
    recognised over time or at a point in time. Where the Group recognises revenue
    over time for long term contracts, this is in general due to the Group
    performing and the customer simultaneously receiving and consuming the benefits
    provided over the life of the contract.

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

    When using the output method the Group recognises revenue on the basis of
    direct measurements of the value to the customer of the goods and services
    transferred to date relative to the remaining goods and services under the
    contract. Where the output method is used, in particular for long term service
    contracts where the series guidance is applied (see below for further details),
    the Group often uses a method of time elapsed which requires minimal
    estimation.  Certain long term contracts use output methods based upon
    estimation of number of users, level of service activity or fees collected.

    If performance obligations in a contract do not meet the over time criteria,
    the Group recognises revenue at a point in time (see below for further
    details).

    The Group disaggregates revenue from contracts with customers by contract type,
    as management believe this best depicts how the nature, amount, timing and
    uncertainty of the Group's revenue and cash flows are affected by economic
    factors:

    Contract term longer than 2 years

    The Group provides a range of services in the majority of its reportable
    segments under customer contracts with a duration of more than two years.

    The nature of contracts or performance obligations categorised within this
    revenue type is diverse and includes (i) long term outsourced service
    arrangements in the public and private sectors; and (ii) active software
    licence arrangements (see definition below).

    The service contracts in this category include contracts with either a single
    or multiple performance obligations.

    The Group considers that the services provided meet the definition of a series
    of distinct goods and services as they are (i) substantially the same and (ii)
    have the same pattern of transfer (as the series constitutes services provided
    in distinct time increments (e.g., daily, monthly, quarterly or annual
    services)) and therefore treats the series as one performance obligation. Even
    if the underlying activities performed by the Group to satisfy a promise vary
    significantly throughout the day and from day to day, that fact, by itself,
    does not mean the distinct goods or services are not substantially the same. 
    For the majority of long service contracts with customers in this category, the
    Group recognises revenue using the output method as it best reflects the nature
    in which the Group is transferring control of the goods or services to the
    customer.

    Active software licences are those where the Group has a continuing involvement
    after the sale or transfer of control to the customer, which significantly
    affects the intellectual property to which the customer has rights. The Group
    is in a majority of cases responsible for any maintenance, continuing support,
    updates and upgrades and accordingly the sale of the initial software is not
    distinct. The Group's accounting policy for licences is discussed in more
    detail below.

    Over time service with contract length less than 2 years

    The nature of contracts or performance obligations categorised within this
    revenue type is diverse and includes (i) short term outsourced service
    arrangements in the public and private sectors; and (ii) software maintenance
    contracts.

    The Group has assessed that maintenance and support (i.e. on-call support,
    remote support) for software licences is a performance obligation that can be
    considered capable of being distinct and separately identifiable in a contract
    if the customer has a passive licence. These recurring services are
    substantially the same as the nature of the promise is for the Group to 'stand
    ready' to perform maintenance and support when required by the customer. Each
    day of standing ready is then distinct from each following day and is
    transferred in the same pattern to the customer.

    Transactional (Point in time) contracts

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

    The nature of contracts or performance obligations categorised within this
    revenue type is diverse and includes (i) provision of IT hardware goods; (ii)
    passive software licence agreements; (iii) commission received as agent from
    the sale of third party software;  and (iv) fees received in relation to
    delivery of professional services.

    Passive software licences are licences which have significant stand-alone
    functionality and the contract does not require, and the customer does not
    reasonably expect, the Group to undertake activities that significantly affect
    the licence. Any ongoing maintenance or support services for passive licences
    are likely to be separate performance obligations.  The Group's accounting
    policy for licences is discussed in more detail below.

    Contract modifications

    The Group's contracts are often amended for changes in contract specifications
    and requirements. Contract modifications exist when the amendment either
    creates new or changes the existing enforceable rights and obligations. The
    effect of a contract modification on the transaction price and the Group's
    measure of progress for the performance obligation to which it relates, is
    recognised as an adjustment to revenue in one of the following ways:

     a. prospectively as an additional separate contract;
     b. prospectively as a termination of the existing contract and creation of a
        new contract;
     c. as part of the original contract using a cumulative catch up; or
     d. as a combination of b) and c).

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

    The facts and circumstances of any contract modification are considered
    individually as the types of modifications will vary contract by contract and
    may result in different accounting outcomes.

    Judgement is applied in relation to the accounting for such modifications where
    the final terms or legal contracts have not been agreed prior to the period end
    as management need to determine if a modification has been approved and if it
    either creates new or changes existing enforceable rights and obligations of
    the parties. Depending upon the outcome of such negotiations, the timing and
    amount of revenue recognised may be different in the relevant accounting
    periods.  Modification and amendments to contracts are undertaken via an agreed
    formal process.   For example, if a change in scope has been approved but the
    corresponding change in price is still being negotiated, management use their
    judgement to estimate the change to the total transaction price.  Importantly
    any variable consideration is only recognised to the extent that it is highly
    probably that no revenue reversal will occur.

    Principal versus agent

    The Group has arrangements with some of its customers whereby it needs to
    determine if it acts as a principal or an agent as more than one party is
    involved in providing the goods and services to the customer. The Group acts as
    a principal if it controls a promised good or service before transferring that
    good or service to the customer. The Group is an agent if its role is to
    arrange for another entity to provide the goods or services.  Factors
    considered in making this assessment are most notably the discretion the Group
    has in establishing the price for the specified good or service, whether the
    Group has inventory risk and whether the Group is primarily responsible for
    fulfilling the promise to deliver the service or good.

    This assessment of control requires judgement in particular in relation to
    certain service contracts.  An example, is the provision of certain recruitment
    and learning services where the Group may be assessed to be agent or principal
    dependent upon the facts and circumstances of the arrangement and the nature of
    the services being delivered.

    Where the Group is acting as a principal, revenue is recorded on a gross basis.
    Where the Group is acting as an agent revenue is recorded at a net amount
    reflecting the margin earned.

    Licences

    Software licences delivered by the Group can either be right to access
    ('active') or right to use ('passive') licences. Active licences are licences
    which require continuous upgrade and updates for the software to remain useful,
    all other licences are treated as passive licences.  The assessment of whether
    a licence is active or passive involves judgement. The key determinant of
    whether a licence is active is whether the Group is required to undertake
    activities that significantly affect the licensed intellectual property (or the
    customer has a reasonable expectation that it will do so) and the customer is,
    therefore, exposed to positive or negative impacts resulting from those
    changes.

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

    The Group considers for each contract that includes a separate licence
    performance obligation all the facts and circumstances in determining whether
    the licence revenue is recognised over time or at a point in time from the go
    live date of the licence.

    Contract related assets and liabilities

     As a result of the contracts which the Group enters into with its customers, a
    number of different assets and liabilities are recognised on the Group's
    balance sheet. These include but are not limited to:

    • Property, plant and equipment*

    • Intangible assets* 

    • Contract fulfilment assets^

    • Contract assets derived from costs to obtain a contract^

    • Trade receivables*

    • Accrued income^

    • Deferred income^

    * No change in the accounting policies for these assets as a result of the
    adoption of IFRS 15

    ^ Refer below for the accounting policy applied following the adoption of IFRS
    15

    Contract fulfilment assets

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

    When determining the appropriate accounting treatment for such costs, the Group
    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 Group
    applies the following criteria which, if met, result in capitalisation: (i) the
    costs directly relate to a contract or to a specifically identifiable
    anticipated contract; (ii) 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 (iii) 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 Group 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 Group's accounting policy for property,
    plant and equipment), software licence costs (generally in scope of the Group's
    accounting policy for intangible assets), recruitment costs and training.

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

    Capitalisation of costs to obtain a contract

    The incremental costs of obtaining a contract with a customer are recognised as
    an asset if the Group expects to recover them. The Group 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 Group 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 Group
    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 Group has determined that the following costs may be capitalised as
    contract assets (i) legal fees to draft a contract (once the Group 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.

    Utilisation, derecognition and impairment of contract fulfilment assets and
    capitalised costs to obtain a contract

    The Group utilises 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 Group transfers control of the
    service to the customer.  The utilisation charge is included within cost of
    sales.  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 as well as
    contract fulfilment assets, capitalised costs to obtain a contract, accrued
    income and trade receivables. At each reporting date, the Group 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 Group expects to receive less the
    costs that relate to providing services under the relevant contract. In
    determining the estimated amount of consideration, the Group uses the same
    principles as it does to determine the contract transaction price, except that
    any constraints used to reduce the transaction price will be removed for the
    impairment test.

    Where the relevant contracts or specific performance obligations are
    demonstrating marginal profitability or other indicators of impairment,
    judgement is required in ascertaining whether or not the future economic
    benefits from these contracts are sufficient to recover these assets.  In
    performing this impairment assessment, management is required to make an
    assessment of the costs to complete the contract. The ability to accurately
    forecast such costs involves estimates around cost savings to be achieved over
    time, anticipated profitability of the contract, as well as future performance
    against any contract-specific KPIs that could trigger variable consideration,
    or service credits. Where a contract is anticipated to make a loss, these
    judgements are also relevant in determining whether or not an onerous contract
    provision is required and how this is to be measured.

    Deferred and accrued income

    The Group's customer contracts include a diverse range of payment schedules
    dependent upon the nature and type of goods and services being provided.  The
    Group often agrees payment schedules at the inception of long term contracts
    under which it receives payments throughout the term of the contracts. These
    payment schedules may include performance-based payments or progress payments
    as well as regular monthly or quarterly payments for ongoing service delivery. 
    Payments for transactional goods and services may be at delivery date, in
    arrears or part payment in advance.

    Where payments made are greater than the revenue recognised at the period end
    date, the Group recognises a deferred income contract liability for this
    difference. Where payments made are less than the revenue recognised at the
    period end date, the Group recognises an accrued income contract asset for this
    difference.

    Property commercialisation

    Part of the Group's strategy is to create and deliver maximum value from assets
    that are either owned by its customers or are acquired by the Group as part of
    a wider transaction. By combining the Group's capabilities with the expertise
    and assets of any organisation, the Group can significantly increase the value
    that can be generated from often under-utilised assets. Our strategy often
    involves the commercialisation of property assets, where the Group will invest
    in real estate improvements to maximise the future capital value or commercial
    letting potential. Such an investment approach can generate substantial
    benefits that can be realised up-front or over time. Examples of up-front value
    creation include entering into transactions when current market values offer
    opportunities to generate immediate shareholder returns, with opportunities for
    continued investment in the underlying asset. For example, the Group will
    acquire property with a view to resale and subsequently complete a sale and
    lease back transaction resulting in revenue and profit recorded in the year.
    The Group applies judgement over the categorisation of such transactions as
    operating or finance leases.

    Consolidated income statement restatement under IFRS 15

                       Adjustment    As reported, six months ended 30 June  Discontinued operations   Impact of IFRS 15   Restated, six months ended 30 June 2016 
                                                                      2016                                                                                        
                                                                                                                                                                  
                                  Underlying Business  Specific      Total     Underlying / Specific Underlying Specific  Underlying Business  Specific      Total
                                                 exit     items             reclasification    items               items                 exit     items           
                                                                                to business                                                                       
                                                                                       exit                                                                       
                                                                                                                                                                  
                                          £m       £m        £m         £m               £m       £m         £m       £m          £m       £m        £m         £m
                                                                                                                                                                  
    Revenue              A,B,C     2,405.4     24.6         -    2,430.0         (147.3 )        -     (126.8 )      -     2,131.3     24.6         -    2,155.9  
                                                                                                                                                                  
    Cost of sales         A,D     (1,716.9 )  (17.9 )       -   (1,734.8 )         57.2          -        3.1        -    (1,656.6 )  (17.9 )       -   (1,674.5 )
                                                                                                                                                                  
    Gross profit                     688.5      6.7         -      695.2          (90.1 )        -     (123.7 )      -       474.7      6.7         -      481.4  
                                                                                                                                                                  
    Administrative         H        (370.9 )   (6.7 )   (81.3 )   (458.9 )         62.2        2.6          -        -      (308.7 )   (6.7 )   (78.7 )   (394.1 )
    expenses                                                                                                                                                      
                                                                                                                                                                  
    Operating profit                 317.6        -     (81.3 )    236.3          (27.9 )      2.6     (123.7 )      -       166.0        -     (78.7 )     87.3  
                                                                                                                                                                  
    Net finance costs                (32.3 )      -     (17.8 )    (50.1 )            -        0.1          -        -       (32.3 )      -     (17.7 )    (50.0 )
                                                                                                                                                                  
    Loss on disposal                     -     (0.1 )       -       (0.1 )            -          -          -        -           -     (0.1 )       -       (0.1 )
                                                                                                                                                                  
    Profit before tax                285.3     (0.1 )   (99.1 )    186.1          (27.9 )      2.7     (123.7 )      -       133.7     (0.1 )   (96.4 )     37.2  
                                                                                                                                                                  
    Income tax expense     E         (52.8 )      -      18.7      (34.1 )          4.4       (0.5 )     27.4        -       (21.0 )      -      18.2       (2.8 )
                                                                                                                                                                  
    Profit for the                   232.5     (0.1 )   (80.4 )    152.0          (23.5 )      2.2      (96.3 )      -       112.7     (0.1 )   (78.2 )     34.4  
    period from                                                                                                                                                   
    continuing                                                                                                                                                    
    operations                                                                                                                                                    
                                                                                                                                                                  
    Profit for the                       -        -         -          -           23.5       (2.2 )        -        -           -     23.5      (2.2 )     21.3  
    period from                                                                                                                                                   
    discontinued                                                                                                                                                  
    operations                                                                                                                                                    
                                                                                                                                                                  
    Total profit for                 232.5     (0.1 )   (80.4 )    152.0              -          -      (96.3 )      -       112.7     23.4     (80.4 )     55.7  
    the period                                                                                                                                                    
                                                                                                                                                                  
    Attributable to:                                                                                                                                              
                                                                                                                                                                  
    Owners of the                    227.1     (0.1 )   (78.1 )    148.9                                (96.7 )      -       106.9     23.4     (78.1 )     52.2  
    Company                                                                                                                                                       
                                                                                                                                                                  
    Non-controlling                    5.4        -      (2.3 )      3.1                                  0.4        -         5.8        -      (2.3 )      3.5  
    interests                                                                                                                                                     
                                                                                                                                                                  
                                     232.5     (0.1 )   (80.4 )    152.0                                (96.3 )      -       112.7     23.4     (80.4 )     55.7  
                                                                                                                                                                  
    Earnings per share                                                                                                                                            
                                                                                                                                                                  
    Continuing                                                                                                                                                    
    operations:                                                                                                                                                   
                                                                                                                                                                  
    - basic                          34.24 p (0.02) p (11.78) p    22.44 p       (3.54) p     0.33 p  (14.58) p      - p     16.12 p (0.02) p (11.44) p     4.66 p
                                                                                                                                                                  
    - diluted                        34.05 p (0.01) p (11.71) p    22.33 p       (3.52) p     0.33 p  (14.50) p      - p     16.03 p (0.01) p (11.38) p     4.64 p
                                                                                                                                                                  
    Total operations:                                                                                                                                             
                                                                                                                                                                  
    - basic                          34.24 p (0.02) p (11.78) p    22.44 p            - p        - p  (14.58) p      - p     16.12 p   3.53 p (11.78) p     7.87 p
                                                                                                                                                                  
    - diluted                        34.05 p (0.01) p (11.71) p    22.33 p            - p        - p  (14.50) p      - p     16.03 p   3.51 p (11.71) p     7.83 p

    Consolidated income statement restatement under IFRS 15 (continued)

                        Adjustment As reported, year ended 31 December 2016  Discontinued operations   Impact of IFRS 15    Restated, year ended 31 December 2016  
                                                                                                                                                                   
                                   Underlying Business  Specific      Total     Underlying / Specific Underlying Specific  Underlying Business  Specific      Total
                                                  exit     items             reclasification    items               items                 exit     items           
                                                                                 to business                                                                       
                                                                                        exit                                                                       
                                                                                                                                                                   
                                           £m       £m        £m         £m               £m       £m         £m       £m          £m       £m        £m         £m
                                                                                                                                                                   
    Revenue               A,B,C     4,897.9     11.3         -    4,909.2         (316.3 )        -     (224.3 )      -     4,357.3     11.3         -    4,368.6  
                                                                                                                                                                   
    Cost of sales          A,D     (3,627.7 )   (6.7 )    (7.5 ) (3,641.9 )        111.8          -       97.4    (34.8 )  (3,418.5 )   (6.7 )   (42.3 ) (3,467.5 )
                                                                                                                                                                   
    Gross profit                    1,270.2      4.6      (7.5 )  1,267.3         (204.5 )        -     (126.9 )  (34.8 )     938.8      4.6     (42.3 )    901.1  
                                                                                                                                                                   
    Administrative          H        (728.9 )   (1.8 )  (388.3 ) (1,119.0 )        144.5        4.3      (19.8 )   59.4      (604.2 )   (1.8 )  (324.6 )   (930.6 )
    expenses                                                                                                                                                       
                                                                                                                                                                   
    Operating profit                  541.3      2.8    (395.8 )    148.3          (60.0 )      4.3     (146.7 )   24.6       334.6      2.8    (366.9 )    (29.5 )
                                                                                                                                                                   
    Net finance costs                 (66.0 )      -      (7.6 )    (73.6 )         (0.1 )     (0.1 )        -        -       (66.1 )      -      (7.7 )    (73.8 )
                                                                                                                                                                   
    Loss on disposal                      -      0.1         -        0.1              -          -          -        -           -      0.1         -        0.1  
                                                                                                                                                                   
    Profit before tax                 475.3      2.9    (403.4 )     74.8          (60.1 )      4.2     (146.7 )   24.6       268.5      2.9    (374.6 )   (103.2 )
                                                                                                                                                                   
    Income tax expense      E         (87.9 )    0.5      54.9      (32.5 )          9.5       (0.9 )     32.0     (3.9 )     (46.4 )    0.5      50.1        4.2  
                                                                                                                                                                   
    Profit for the                    387.4      3.4    (348.5 )     42.3          (50.6 )      3.3     (114.7 )   20.7       222.1      3.4    (324.5 )    (99.0 )
    period from                                                                                                                                                    
    continuing                                                                                                                                                     
    operations                                                                                                                                                     
                                                                                                                                                                   
    Profit for the                        -        -         -          -           50.6       (3.3 )        -        -           -     50.6      (3.3 )     47.3  
    period from                                                                                                                                                    
    discontinued                                                                                                                                                   
    operations                                                                                                                                                     
                                                                                                                                                                   
    Total profit for                  387.4      3.4    (348.5 )     42.3              -          -     (114.7 )   20.7       222.1     54.0    (327.8 )    (51.7 )
    the period                                                                                                                                                     
                                                                                                                                                                   
    Attributable to:                                                                                                                                               
                                                                                                                                                                   
    Owners of the                     376.7      3.4    (343.2 )     36.9                               (115.5 )   20.7       210.6     54.0    (322.5 )    (57.9 )
    Company                                                                                                                                                        
                                                                                                                                                                   
    Non-controlling                    10.7        -      (5.3 )      5.4                                  0.8        -        11.5        -      (5.3 )      6.2  
    interests                                                                                                                                                      
                                                                                                                                                                   
                                      387.4      3.4    (348.5 )     42.3                               (114.7 )   20.7       222.1     54.0    (327.8 )    (51.7 )
                                                                                                                                                                   
    Earnings per share                                                                                                                                             
                                                                                                                                                                   
    Continuing                                                                                                                                                     
    operations:                                                                                                                                                    
                                                                                                                                                                   
    - basic                           56.67 p   0.51 p (51.63) p     5.55 p       (7.61) p     0.50 p  (17.38) p   3.11 p     31.68 p   0.51 p (48.02) p  (15.83) p
                                                                                                                                                                   
    - diluted                         56.67 p   0.51 p (51.63) p     5.55 p       (7.61) p     0.50 p  (17.38) p   3.11 p     31.68 p   0.51 p (48.02) p  (15.83) p
                                                                                                                                                                   
    Total operations:                                                                                                                                              
                                                                                                                                                                   
    - basic                           56.67 p   0.51 p (51.63) p     5.55 p            - p        - p  (17.38) p   3.11 p     31.68 p   8.12 p (48.52) p   (8.71) p
                                                                                                                                                                   
    - diluted                         56.67 p   0.51 p (51.63) p     5.55 p            - p        - p  (17.38) p   3.11 p     31.68 p   8.12 p (48.52) p   (8.71) p

    Total adjustment to Total profit for the period due to the adoption of IFRS 15
    is £(114.7)m to underlying + £20.7m to specific items, being £94.0m.

    Consolidated balance sheet restatement under IFRS 15

                                             Adjustment        As Impact of  Restated         As  Impact of   Restated
                                                         reported   IFRS 15     1 Jan   reported    IFRS 15     31 Dec
                                                            1 Jan                2016     31 Dec                  2016
                                                             2016                           2016                      
                                                                                                                      
                                                               £m        £m        £m         £m         £m         £m
                                                                                                                      
    Non-current assets                                                                                                
                                                                                                                      
    Property, plant and equipment                         406.0         -     406.0      394.7          -      394.7  
                                                                                                                      
    Intangible assets                                   2,810.0         -   2,810.0    2,754.2          -    2,754.2  
                                                                                                                      
    Contract fulfilment assets                   D            -     277.6     277.6          -      240.6      240.6  
                                                                                                                      
    Financial assets                                      186.6         -     186.6      337.6          -      337.6  
                                                                                                                      
    Deferred taxation                            E         18.8     162.8     181.6       32.0      190.4      222.4  
                                                                                                                      
    Trade and other receivables                  F         86.1     (41.7 )    44.4      128.4      (79.6 )     48.8  
                                                                                                                      
                                                        3,507.5     398.7   3,906.2    3,646.9      351.4    3,998.3  
                                                                                                                      
    Current assets                                                                                                    
                                                                                                                      
    Financial assets                                       44.3         -      44.3       92.6          -       92.6  
                                                                                                                      
    Contract fulfilment assets                   D            -      40.4      40.4                  41.6       41.6  
                                                                                                                      
    Disposal group assets held for sale                    84.1         -      84.1          -          -          -  
                                                                                                                      
    Funds assets                                          161.7         -     161.7      173.6          -      173.6  
                                                                                                                      
    Trade and other receivables                  F      1,011.9    (284.1 )   727.8      976.0     (174.9 )    801.1  
                                                                                                                      
    Cash                                                  534.0         -     534.0    1,098.3          -    1,098.3  
                                                                                                                      
                                                        1,836.0    (243.7 ) 1,592.3    2,340.5     (133.3 )  2,207.2  
                                                                                                                      
    Total assets                                        5,343.5     155.0   5,498.5    5,987.4      218.1    6,205.5  
                                                                                                                      
    Current liabilities                                                                                               
                                                                                                                      
    Trade and other payables                     G      1,144.0    (271.0 )   873.0    1,297.6     (320.6 )    977.0  
                                                                                                                      
    Deferred income                            B,C,G          -   1,157.3   1,157.3          -    1,374.9    1,374.9  
                                                                                                                      
    Overdrafts                                            448.7         -     448.7      532.5          -      532.5  
                                                                                                                      
    Financial liabilities                                 230.8         -     230.8      224.2          -      224.2  
                                                                                                                      
    Disposal group liabilities held for sale               40.4         -      40.4          -          -          -  
                                                                                                                      
    Funds liabilities                                     161.7         -     161.7      173.6          -      173.6  
                                                                                                                      
    Provisions                                             69.4         -      69.4      112.5          -      112.5  
                                                                                                                      
    Income tax payable                           E         46.2         -      46.2       18.6          -       18.6  
                                                                                                                      
                                                        2,141.2     886.3   3,027.5    2,359.0    1,054.3    3,413.3  
                                                                                                                      
    Non-current liabilities                                                                                           
                                                                                                                      
    Trade and other payables                     G         29.3     (15.5 )    13.8       35.1      (14.1 )     21.0  
                                                                                                                      
    Deferred income                            B,C,G          -     228.5     228.5          -      216.7      216.7  
                                                                                                                      
    Financial liabilities                               2,163.4         -   2,163.4    2,694.4          -    2,694.4  
                                                                                                                      
    Deferred taxation                            E         19.0      (2.0 )    17.0       22.1       (2.5 )     19.6  
                                                                                                                      
    Provisions                                             49.0         -      49.0       48.2          -       48.2  
                                                                                                                      
    Employee benefits                                     188.3         -     188.3      345.2          -      345.2  
                                                                                                                      
                                                        2,449.0     211.0   2,660.0    3,145.0      200.1    3,345.1  
                                                                                                                      
    Total liabilities                                   4,590.2   1,097.3   5,687.5    5,504.0    1,254.4    6,758.4  
                                                                                                                      
    Net assets                                            753.3    (942.3 )  (189.0 )    483.4   (1,036.3 )   (552.9 )
                                                                                                                      
    Capital and reserves                                                                                              
                                                                                                                      
    Issued share capital                                   13.8         -      13.8       13.8          -       13.8  
                                                                                                                      
    Share premium                                         500.7         -     500.7      501.3          -      501.3  
                                                                                                                      
    Employee benefit trust                                 (0.3 )       -      (0.3 )     (0.2 )        -       (0.2 )
    and treasury shares                                                                                               
                                                                                                                      
    Capital redemption reserve                              1.8         -       1.8        1.8          -        1.8  
                                                                                                                      
    Foreign currency translation reserve                  (21.2 )       -     (21.2 )     (6.2 )        -       (6.2 )
                                                                                                                      
    Cash flow hedging reserve                             (12.0 )       -     (12.0 )        -          -          -  
                                                                                                                      
    Retained earnings                                     196.5    (934.7 )  (738.2 )   (102.3 ) (1,029.3 ) (1,131.6 )
                                                                                                                      
    Equity attributable to                                679.3    (934.7 )  (255.4 )    408.2   (1,029.3 )   (621.1 )
    owners of the Company                                                                                             
                                                                                                                      
    Non-controlling interests                              74.0      (7.6 )    66.4       75.2       (7.0 )     68.2  
                                                                                                                      
    Total equity                                          753.3    (942.3 )  (189.0 )    483.4   (1,036.3 )   (552.9 )

    Consolidated cash flow statement restatement under IFRS 15

    As a result of the adoption of IFRS 15, certain reclassifications are required
    in relation to the following cash flow movements between relevant balance sheet
    accounts.  There has been no change in the net cash generated from operations
    as a result of these reclassifications or restatement of these balance sheet
    accounts:

    • As identified in adjustment H (below), in 2016, the Group recognised a write
    down of accrued income in underlying profit and specific items in relation to
    certain long term service contracts.  Under IFRS 15 this accrued income would
    not have been originally recognised and hence has been reversed out of the
    income statement on adoption of IFRS 15.  Movements in the operating cash flow
    note reflect the reversal of this non-cash movement;

    • As identified in adjustment D (below), the Group has recognised new contract
    fulfilment assets on adoption of IFRS 15 from 1 January 2016 with amortisation
    and impairment expenses recorded through the income statement in the six months
    ended 30 June 2016 and year ended 31 December 2016.  Movements in the operating
    cash flow note reflect these non-cash movements recorded in the income
    statement; and

    • As identified in adjustments D, B and C, on transition to IFRS 15 as at 1
    January 2016, the Group has recognised contract fulfilment assets and restated
    the accrued income and deferred revenue accounts recorded in the balance
    sheet.  Movements in the operating cash flow note reflect the relevant cash and
    non-cash movements in reclassified line items.

    Consolidated statement of changes in equity restatement under IFRS 15

    No reconciliation of the restated consolidated statement of changes in equity
    is presented as the only changes to this primary statement for the relevant
    period presented are as follows:

    • Consolidated statement of changes in equity as at 1 January 2016: recognition
    of the restated retained earnings figure as presented in the restated
    consolidated balance sheet as at this date.

    • Consolidated statement of changes in equity as at 30 June 2016: recognition
    of the restated profit for the six month period ended 30 June 2016 as presented
    in the restated consolidated income statement for this period.

    • Consolidated statement of changes in equity as at 31 December 2016:
    recognition of the restated profit for the year ended 31 December 2016 as
    presented in the restated consolidated income statement for this year.

    Notes to the financial statements restatement under IFRS 15

    Management has undertaken an extensive exercise to consider the Group's major
    contractual arrangements as part of the implementation of IFRS 15.  A number of
    significant areas have been identified for adjustment which include:

    • Recognition of revenue by the Group as agent or principal (Adjustment A);

    • Accounting for software licences (Adjustment B);

    • Recognition of profit from service contracts over time in line with the
    output method (Adjustment C);

    • Recognition, utilisation and derecognition of contract fulfilment assets
    (Adjustment D);

    • Impact on tax balances as a result of adoption of IFRS 15 (Adjustment E);

    • Decrease in trade and other receivables (Adjustment F);

    • Reclassification of trade and other payables (Adjustment G);

    • Reversal of prior period accrued income impairment within specific items
    (Adjustment H); and

    • Reclassification of significant restructuring costs to underlying (Adjustment
    I).

    These adjustments are discussed in the relevant sections below.

    Under IFRS 15, the pattern and timing of revenue recognition has changed
    resulting in an overall decrease of £126.8m in revenue for the 6 months ended
    30 June 2016 (year ended 31 December 2016: £224.3m), increase in deferred
    income of £1,099.3m at the 1 January 2016 opening balance sheet date (31
    December 2016: £1,256.9m) and decrease in accrued income of £325.8m at the 1
    January 2016 opening balance sheet date (31 December 2016: £254.5m). 

    Table 1 on the following page reconciles the movements in relation to IFRS 15
    for the income statement for the six months ended 30 June 2016 and the year
    ended 31 December 2016 and the balance sheet as at 1 January 2016 and as at 31
    December 2016.

    Table 2 provides further detail on the reconciling movements for the income
    statement for the year ended 31 December 2016.

    Following the tables are explanatory notes for each of the adjustments referred
    to above.

    The table below reconciles movements in relation to IFRS 15 for the income
    statement for the six months ended 30 June 2016 and the year ended 31 December
    2016 and the balance sheet as at 1 January 2016 and as at 31 December 2016. 
    Refer to below the tables for explanatory notes on each of the adjustments.

    Table 1:                   Consolidated income statement for the six months ended 30 June 2016                                                                                                
                                                                                                                                                                                                  
                        Adjustment                     Underlying          Specific items   Profit           Trade and other     Deferred income    Trade and     Contract    Deferred  Adjustment
                            to net                                                         for the               receivables                            other   fulfilment         tax      to net
                         assets at                                                          period                                                   payables        asset             liabilities
                         1 January                                                                                                                                                           at 31
    Adjustment                2016  Revenue   Cost    Admin   Tax Cost of    Admin    Tax               Non-current  Current    Current Non-current Current Non-current Non-current Current  Asset Liability    December
                                                of expenses         sales expenses                                                                                                            2016
                                             sales                                                                                                                                                
                                                                                                                                                                                                  
                                £m       £m     £m       £m    £m      £m       £m     £m       £m               £m       £m         £m       £m     £m    £m     £m    £m     £m   £m          £m
                                                                                                                                                                                                  
    A - Agent vs.              -      0.7   (0.7 )     -       -      -       -       -        -                                                                                                  
    principal                                                                                                                                                                                     
                                                                                                                                                                                                  
    B - Software          (163.2 )   (7.2 )    -       -       -      -       -       -     (7.2 )                                                                                                
    licences                                                                                                                                                                                      
                                                                                                                                                                                                  
    C - Recognition in  (1,214.8 ) (120.3 )    -       -       -      -       -       -   (120.3 )                                                                                                
    line with output                                                                                                                                                                              
                                                                                                                                                                                                  
    D - Recognition of     214.7        -   (3.7 )     -       -      -       -       -     (3.7 )                                                                                                
    non-current                                                                                                                                                                                   
    contract fulfilment                                                                                                                                                                           
    assets                                                                                                                                                                                        
                                                                                                                                                                                                  
    D - Recognition of      62.9        -    1.7       -       -      -       -       -      1.7                                                                                                  
    software contract                                                                                                                                                                             
    fulfilment assets                                                                                                                                                                             
                                                                                                                                                                                                  
    D - Recognition of      40.4        -    5.8       -       -      -       -       -      5.8                                                                                                  
    current contract                                                                                                                                                                              
    fulfilment assets                                                                                                                                                                             
                                                                                                                                                                                                  
    E - Tax                164.8        -      -       -    27.4      -       -       -     27.4                                                                                                  
                                                                                                                                                                                                  
    H - Reversal of        (47.1 )      -      -       -       -      -       -       -        -                                                                                                  
    accrued income                                                                                                                                                                                
    impairment                                                                                                                                                                                    
                                                                                                                                                                                                  
    I -                        -        -      -       -       -      -       -       -        -                                                                                                  
    Reclassification of                                                                                                                                                                           
    significant                                                                                                                                                                                   
    restructuring                                                                                                                                                                                 
                                                                                                                                                                                                  
    Total                 (942.3 ) (126.8 )  3.1       -    27.4      -       -       -    (96.3 )                                                                                                
                                                                                                                                                                                                  
                                 Consolidated income statement for the year ended 31 December 2016                                  Consolidated balance sheet for the year ended 31 December 2016
                                                                                                                                                                                                  
    A - Agent vs.              -    (90.9 ) 90.9       -       -      -       -       -        -            -            -          -        -       -     -      -     -      -    -         -   
    principal                                                                                                                                                                                     
                                                                                                                                                                                                  
    B - Software          (163.2 )  (15.3 )    -       -       -      -       -       -    (15.3 )          -            -     (104.8 )  (73.7 )     -     -      -     -      -    -    (178.5 ) 
    licences                                                                                                                                                                                      
                                                                                                                                                                                                  
    C - Recognition in  (1,214.8 ) (118.1 )    -       -       -      -       -       -   (118.1 )      (79.6 )     (174.9 )   (949.5 ) (128.9 )     -     -      -     -      -    -  (1,332.9 ) 
    line with output                                                                                                                                                                              
                                                                                                                                                                                                  
    D - Recognition of     214.7        -   (0.6 )     -       -  (42.3 )     -       -    (42.9 )          -            -          -        -       -     -  171.8     -      -    -     171.8   
    non-current                                                                                                                                                                                   
    contract fulfilment                                                                                                                                                                           
    assets                                                                                                                                                                                        
                                                                                                                                                                                                  
    D - Recognition of      62.9        -    5.9       -       -      -       -       -      5.9            -            -          -        -       -     -   68.8     -      -    -      68.8   
    software contract                                                                                                                                                                             
    fulfilment assets                                                                                                                                                                             
                                                                                                                                                                                                  
    D - Recognition of      40.4        -    1.2       -       -      -       -       -      1.2            -            -          -        -       -     -      -  41.6      -    -      41.6   
    current contract                                                                                                                                                                              
    fulfilment assets                                                                                                                                                                             
                                                                                                                                                                                                  
    E - Tax                164.8        -      -       -    32.0      -       -    (3.9 )   28.1            -            -          -        -       -     -      -     -  190.4  2.5     192.9   
                                                                                                                                                                                                  
    G -                        -        -      -       -       -      -       -       -        -            -            -     (320.6 )  (14.1 ) 320.6  14.1      -     -      -    -         -   
    Reclassification of                                                                                                                                                                           
    trade and other                                                                                                                                                                               
    payables                                                                                                                                                                                      
                                                                                                                                                                                                  
    H - Reversal of        (47.1 )      -      -    39.6       -    7.5       -       -     47.1            -            -          -        -       -     -      -     -      -    -         -   
    accrued income                                                                                                                                                                                
    impairment                                                                                                                                                                                    
                                                                                                                                                                                                  
    I -                        -        -      -   (59.4 )     -      -    59.4       -        -            -            -          -        -       -     -      -     -      -    -         -   
    Reclassification of                                                                                                                                                                           
    significant                                                                                                                                                                                   
    restructuring                                                                                                                                                                                 
                                                                                                                                                                                                  
    Total                 (942.3 ) (224.3 ) 97.4   (19.8 )  32.0  (34.8 )  59.4    (3.9 )  (94.0 )      (79.6 )     (174.9 ) (1,374.9 ) (216.7 ) 320.6  14.1  240.6  41.6  190.4  2.5  (1,036.3 ) 

    The table below provides further detail on the reconciling movements for the
    income statement for the year ended 31 December 2016.  Refer to below the table
    for explanatory notes in respect of each adjustment.

    Table 2:                                                   Consolidated income statement for the year ended 31 December 2016               
                                                                                                                                               
    Adjustment                                               As Discontinued         As Adjustments:  Adjustments: Reclassifications   Restated
                                                       reported   operations reported -   from pre 1    previously                             
                                                                             continuing   Jan 16 and recognised in                             
                                                                             operations   recognised      2016 now                             
                                                                                             in 2016        spread                             
                                                                                                           forward                             
                                                                                                                                               
                                                             £m           £m         £m           £m            £m                £m         £m
                                                                                                                                               
    Agent vs. Principal                           A           -                                  -             -       (90.9 )                 
                                                                                                                                               
    Software revenue from pre 1 Jan 16 and        B           -                              100.0             -           -                   
    recognised in 2016                                                                                                                         
                                                                                                                                               
    Software revenue previously recognised in     B           -                                  -        (115.3 )         -                   
    2016 now spread forward                                                                                                                    
                                                                                                                                               
    Recognition in line with output from pre 1    C           -                            1,096.6             -           -                   
    Jan 16 and recognised in 2016                                                                                                              
                                                                                                                                               
    Recognition in line with output previously    C           -                                  -      (1,214.7 )         -                   
    recognised in 2016 now spread forward                                                                                                      
                                                                                                                                               
    Underlying Revenue                                4,897.9    (316.3 )     4,581.6      1,196.6      (1,330.0 )     (90.9 )        4,357.3  
                                                                                                                                               
    Agent vs. Principal                           A           -            -          -          -             -        90.9                   
                                                                                                                                               
    Non-current contract fulfilment asset         D           -            -          -      (47.1 )           -           -                   
    utilisation in 2016                                                                                                                        
                                                                                                                                               
    Non-current contract fulfilment asset         D           -            -          -      (17.0 )           -           -                   
    disposals in 2016                                                                                                                          
                                                                                                                                               
    Non-current contract fulfilment asset         D           -            -          -          -          63.5           -                   
    additions in 2016                                                                                                                          
                                                                                                                                               
    Software contract fulfilment asset            D           -            -          -       (7.1 )           -           -                   
    utilisation in 2016                                                                                                                        
                                                                                                                                               
    Software contract fulfilment asset additions  D           -            -          -          -          13.0           -                   
    in 2016                                                                                                                                    
                                                                                                                                               
    Completion of point in time performance       D           -            -          -      (40.4 )           -           -                   
    obligations                                                                                                                                
                                                                                                                                               
    Costs deferred to future point in time        D           -            -          -          -          41.6           -                   
    performance obligations                                                                                                                    
                                                                                                                                               
    Underlying cost of sales                         (3,627.7 )   111.8      (3,515.9 )     (111.6 )       118.1        90.9         (3,418.5 )
                                                                                                                                               
    Reversal of accrued income impairment         H                                           39.6             -           -                   
                                                                                                                                               
    Reclassification of 2016 group restructuring  I                                              -             -       (59.4 )                 
    to underlying from specific items                                                                                                          
                                                                                                                                               
    Underlying admin expenses                          (728.9 )   144.5        (584.4 )       39.6             -       (59.4 )         (604.2 )
                                                                                                                                               
    Underlying operating profit                         541.3     (60.0 )       481.3      1,124.6      (1,211.9 )     (59.4 )          334.6  
                                                                                                                                               
    Underlying profit before tax                        475.3     (60.1 )       415.2      1,124.6      (1,211.9 )     (59.4 )          268.5  
                                                                                                                                               
    Specific items - contract fulfilment asset    D         -         -             -        (42.3 )           -                               
    disposal                                                                                                                                   
                                                                                                                                               
    Specific items - reversal of accrued income   H         -         -             -          7.5             -           -                   
    impairment                                                                                                                                 
                                                                                                                                               
    Specific items cost of sales                         (7.5 )       -          (7.5 )      (34.8 )           -           -            (42.3 )
                                                                                                                                               
    Reclassification of 2016 group restructuring  I         -         -             -            -             -        59.4                   
    to underlying from specific items                                                                                                          
                                                                                                                                               
    Specific Items admin expenses                      (388.3 )     4.3        (384.0 )          -             -        59.4           (324.6 )
                                                                                                                                               
    Specific items profit before tax                   (403.4 )     4.2        (399.2 )      (34.8 )           -        59.4           (374.6 )
                                                                                                                                               
    Profit before tax                                    74.8     (55.9 )        18.9      1,089.8      (1,211.9 )         -           (103.2 )

    Adjustment A - Accounting for agent vs. principal

    The previous agent vs. principal guidance contained in IAS 18 has been
    revisited by the Group in light of the revised guidance under IFRS 15 in
    assessing whether it acts as an agent or as a principal in its major
    contractual arrangements.

    As a result of this assessment, the Group concluded that for certain contracts
    it is appropriate to move from principal to agency accounting or vice versa. In
    respect to moving from principal to agency, this related to certain software
    sales arrangements as the Group has concluded that the Group does not control
    the good or service being provided to the customer. As a result, there is a net
    adjustment of £0.7m to increase revenue and cost of sales for the 6 months
    period ended 30 June 2016, and of £90.9m to reduce revenue and cost of sales
    for the year ended 31 December 2016.

    Adjustment B - Accounting for software licences

    Under previous accounting, revenue in relation to certain software licences was
    recognised at a point in time.  Under IFRS 15, the Group has determined that a
    number of these arrangements result in the customer having the right to access
    the licence (an 'active' licence) rather than having the right to use the
    licence (a 'passive' licence).  Under an active licence the ongoing support and
    upgrades are fundamental to the ongoing use of the licences by the customer.

    Hence total revenue for the licence and upgrades are combined with these
    revenues now recognised over the term of the customer contract rather than at a
    point in time resulting in a net decrease in accrued/deferred income at 1
    January 2016 of £163.2m, 31 December 2016: £178.5m; and a net decrease in
    revenue in the six months ended 30 June 2016 of £7.2m and in the year ended 31
    December 2016 of £15.3m. 

    For the year ended 31 December 2016 the net decrease in revenue comprises the
    recognition of £100.0m of revenue from pre 1 January 2016 and the deferral of £
    115.3m of revenue previously recognised in 2016.

    Adjustment C - Revenue recognition in line with output

    Under the previous accounting, revenue for certain contracts was recognised
    under the percentage of completion method based upon costs incurred to date as
    a proportion of the estimated full cost of completing the contract, and
    applying the percentage to the total revenue expected to be earned.  Such
    percentage of completion accounting would typically result in higher levels of
    revenue recognised in the earlier stages of a contract in line with the profile
    of costs incurred.

    Under IFRS 15, all elements of the contract, including transformation activity,
    are combined.  Due to the application of the series guidance and output
    methodology within IFRS 15, these contracts now have revenue recognised in line
    with their output measured on a contract specific basis.

    As such, revenue is now spread over the expected life of the contract rather
    than in line with the costs profile, which has resulted in a reduction in
    revenue recognised in periods prior to 1 January 2016 and a net increase in
    deferred/accrued income as at 1 January 2016 of £1,214.8m, as at 31 December
    2016: £1,332.9m; and a decrease in opening retained earnings as at 1 January
    2016 of £1,214.8m, a decrease in revenue in the six months ended 30 June 2016
    of £120.3m, and year ended 31 December 2016 of £118.1m.

    For the year ended 31 December 2016 the net decrease in revenue comprises the
    recognition of £1,096.6m of revenue from pre 1 January 2016 and the deferral of
    £1,214.7m of revenue previously recognised in 2016.

    Adjustment D - Recognition, utilisation and derecognition of contract
    fulfilment assets

    IFRS 15 specifies that certain costs to fulfil a contract are to be capitalised
    as contract fulfilment assets if relevant criteria are met.

    The Group incurred costs that were previously expensed and which related to
    resources to allow it to deliver services under its long term contracts and
    active software licence arrangements.  In certain situations, costs associated
    with the installation of certain IT equipment in contracts have also been
    capitalised as contract fulfilment assets.

    The adjustments to recognise contract fulfilment assets on the balance sheet as
    at 1 January 2016 of £318.0m recognises the net book value of the identified
    contract fulfilment assets at the opening balance sheet date.

    These adjustments also include the recognition of certain costs of obtaining a
    contract.  IFRS 15 specifies that the incremental costs of obtaining a contract
    with a customer are capitalised if the entity expects to recover them.

    The cost of utilising these assets is recognised within cost of sales on a
    consistent basis over the life of the relevant customer contract.

    The adjustment of £3.8m for the 6 months period ended 30 June 2016 (year ended
    31 December 2016: £6.5m) is to recognise a net decrease in cost of sales due to
    the de-recognition of contract costs now capitalised as contract fulfilment
    assets net of the utilisation charge recorded for the period in relation to
    these assets and the de-recognition of certain contract fulfilment assets.

    For the year ended 31 December 2016, the above net adjustment of £6.5m
    comprises: non-current contract fulfilment additions of £63.5m, utilisation of
    £47.1m, and disposals of £17.0m; software contract fulfilment additions of £
    13.0m, and utilisation of £7.1m; and current contract fulfilment additions of £
    41.6m, and utilisation of £40.4m.

    Specific item

    As disclosed in the 31 December 2016 financial statements, Capita ceased to
    work on the IT system transformation in respect of its contract with The
    Co-operative Bank plc.  Under IFRS 15 this modification has led to an
    impairment of a contract fulfilment asset in respect of this contract as these
    costs were no longer considered recoverable.

    The adjustment of £42.3m in the year ended 31 December 2016 recognises the
    charge incurred on derecognising this contract fulfilment asset. This item has
    been included within the other non-underlying column because it is one-off in
    nature and is due to a contractual dispute rather than arising as a result of
    service credit penalties

    Adjustment E - Tax

    Due to the changes in assets, liabilities, income and expenses recognised as a
    result of the application of IFRS 15, there are consequent IAS 12 Income taxes
    differences that arise as discussed below.

    Deferred tax

    Due to the changes in the pattern and timing of revenue recognition under IFRS
    15, a deferred income liability is recognised on the balance sheet from 1
    January 2016, which will be recognised through the income statement in later
    periods. The impact of these revenue recognition changes is only recognised for
    tax purposes via a one-off transitional tax adjustment on 1 January 2017, so no
    tax deduction is available in 2016 for the reduction in historic revenue
    recognised.

    Contract fulfilment assets have also been recognised on the balance sheet from
    1 January 2016, which will be charged to the income statement in later periods.
    Under IAS 12, the tax base of an asset is the amount that will be deductible
    for tax purposes against any taxable economic benefits that will flow to an
    entity when it recovers the carrying amount of the asset. The tax base of the
    contract fulfilment asset recognised on the balance sheet prior to 1 January
    2017 is therefore reduced by the amounts for which tax deductions have already
    been taken, creating a temporary difference.

    Under the principles of IAS 12, a movement of £164.8m in deferred tax therefore
    arises, recognised as an increase in the deferred tax asset of £162.8m and a
    reduction in the deferred tax liability of £2.0m as at 1 January 2016 (31
    December 2016: £192.9m movement, increase in deferred tax asset of £190.4m, and
    reduction in deferred tax liability of £2.5m) as a result of the transition to
    IFRS 15.

    Income statement deferred tax credit

    The deferred tax asset balance increase of £190.4m and the deferred tax
    liability decrease of £2.5m as at 31 December 2016, give rise to an income
    statement deferred tax credit of £27.4m for the 6 month period to 30 June 2016
    and of £28.1m for the year ended 31 December 2016.

    Income statement current tax expense

    There is no income statement current tax expense impact for the 6 months ended
    30 June 2016 or the year ended 31 December 2016.

    Adjustment F - decrease in trade and other receivables

    The decrease in trade and other receivables relates to the restatement of
    accrued revenues as detailed in Adjustments B and C above. The decrease in
    non-current accrued income is £41.7m as at 1 January 2016, and £79.6m at 31
    December 2016, and the decrease in current accrued income is £284.1m and £
    174.9m at 31 December 2016.

    Adjustment G - Reclassification of trade and other payables

    In order to provide users with relevant financial information in the primary
    financial statements, the Group has decided to reclassify deferred income into
    its own primary statement line item reflecting the materiality and nature of
    this balance in the context of the Group's business.

    The decrease in trade and other payables relates to the reclassification and
    restatement of deferred income as discussed above.  Prior to adoption of IFRS
    15, deferred income was classified within 'Trade and other payables' although
    this was not accounted for as a financial liability.

    Adjustment H - Reversal of accrued income impairments

    In 2016, the Group recognised an impairment of £47.1m historic accrued income,
    of which £39.6m was recognised in underlying profit, and £7.5m within the
    specific items column in relation to the dispute with The Co-operative Bank
    plc.  Under IFRS 15 this accrued income would not have been originally
    recognised as the timing of revenue recognition has changed in comparison to
    the previous accounting policy as discussed in Adjustment C above, hence the
    adjustment of £47.1m for the year ended 31 December 2016 recognises the
    reversal of these previous impairments.

    Adjustment I - Reclassification of significant restructuring

    Following the adoption of IFRS 15, the Board has adopted a policy to separately
    disclose the in year operating profit/loss from significant new contract wins
    and related, or significant, restructuring ("Significant new contract wins and
    restructuring") within underlying results, in order for users of the financial
    statements to obtain a proper understanding of the financial information and
    the performance of the business.

    The Group continually assesses the resourcing levels, both at a divisional
    level and also in relation to the management and delivery of individual
    contracts.  This results in restructuring in the normal course of business and
    any such charges are recorded in "underlying before significant new contract
    wins and restructuring" results.  A significant restructuring is assessed as
    that above this normal level of restructuring.

    In the year ended 31 December 2016, the Board announced a major programme, with
    the restructuring of the Group into 6 new reporting divisions under a
    Group-wide programme.  The cost of this Group-wide programme, £59.4m, was
    charged to specific items, being the element above the normal level of
    restructuring undertaken by the Group.  Following the adoption of the above
    policy, the 2016 income statement has been restated to reclassify the cost of
    this programme to 'Significant new contract wins and restructuring' within
    underlying.