Rod Aldridge

Rod Aldridge is an entrepreneur with over 40 years experience of working in the public and private sectors.

He is the founder of the Capita Group retiring in July 2006 as Chairman. Subsequently he established The Aldridge Foundation to continue his work on public service reform and to focus on his charitable activities.

• Educational underachievement & Social Exclusion
• Public Service Reform Partnership and Development
• Community Engagement

The Capita Story

Rod Aldridge became the first Managing Director of the Chartered Institute of Public Finance and Accountancy (CIPFA) Computer Services Ltd in March 1984. The company was formed following the successful formation by CIPFA of a consortium of 154 Local Authorities to design and implement a computer system to accommodate the requirements of the Direct Labour Organisation (DLO) Legislation. This is still the largest consortium of Local Authorities ever formed in Europe to work together on a collaborative project. The computer specification was purchased by 12 computer companies and CIPFA received a royalty for its use along with an implementation fee and consultancy. It proved to be so successful that the Institute needed to protect its charitable status and so formed Capita Computer Services as a business to implement this work.

By 1987 the Company had grown to 33 people and was a consultancy offering services mainly to local authorities. In March 1987 Rod led a management buy out (MBO) of CIPFA Computer Services which resulted in the formation of Capita Plc. The transaction was completed on Friday 13th March for £330,000. At that time the turnover of the company was £304 million and it had 4 major clients. In its first year of trading following the MBO its revenue increased to £793 million.

In 1989 Capita was floated on the then Unlisted Securities Market with a market capitalisation of £8 million, it employed 100 people and was still predominantly a computer business working for local authorities. At that time of the flotation the revenues were £4.3 million and profits £747,000.

From 1989 to 1993 Capita began to change from being consultancy to becoming an IT outsourcing company with long term contracted revenues of 5 years or longer. Over time, Capita broadened its activity from IT to running local government council tax, housing benefit and business rates. Contracts became more integrated and longer term and ultimately the company won its first contract in central government to manage the Teacher Pensions Agency.

From 1993 onwards contracts became larger and Capita successfully won work to look after the Criminal Records Bureau, BBC TV Licences, Birmingham City Council and Congestion Charging for London. The Group has also developed strongly in the private sector particularly in the life and pensions market and more recently with the financial services sector. Major contract have been won with the Prudential, Abbey Life and more recently Resolution Life.

Capita is now the largest company in the business process outsourcing (BPO) market which is estimated to be worth over £100 billion per annum with Capita having 27% of the contracts let. The mix of the business has now moved away from being predominately local government in its early history to being more 50/50 public/private today. The Group employs 27,000 people, 12,000 of whom have transferred to Capita from the public sector.  In the year that Rod retired from Capita its revenues reached £1.7 billion with profits of £200.1 million. It now has 19,000 clients and interacts with 33 million people in the country. It is the best performing share ever on the FTSE with a Market capitalisation today of over £4.5 billion. 

On retiring in July 2006 Rod wrote to the shareholders:

“I am retiring today after leading the Capita Group for 22 years since its formation in 1984. It has been an incredible journey and the success of Capita has changed the lives of all of us associated with its development. I leave with the confidence and knowledge that the company is in the best financial health and the best position it has enjoyed in its history.

During Capita's 17 years as a public company, shareholders have enjoyed a total shareholder return of 165 times, equating to a 35% per annum compound return. Our employee numbers have grown from 98, when we floated in 1987, to 26,000 today and it has been my privilege to work with some exceptionally talented and committed people. Our client base has grown from a handful to over 25,000 organisations across the UK and these relationships are hugely valued and enduring. Our services now touch the lives of more than 33 million people in the country.”

Rod Aldridge, 31 July 2006

Find out more in Capita’s 22 years in figures.