Jobs boost as Fera privatisation goes ahead
CAPITA has secured a 10-year deal to partner the UK government in operating the Food and Environment Research Agency (Fera), which employs nearly 400 scientists at a site near York.
The company will acquire a 75% stake in the joint venture for £20m in cash.
The tie-up will create 50 new jobs in York and, in partnership with Newcastle University, an institute that will bring together around 40 researchers.
The FTSE 100 company said the joint venture was expected to achieve at least £700m revenue over the next 10 years, with growth forecast through existing agreements with the public sector, securing new public sector work and developing services to penetrate the commercial market.
Fera, which already generates annual turnover of around £40m, provides scientific services to government and commercial customers, such as food retailers and manufacturers of crop protection products, in the UK and overseas.
Capita has also been selected to provide a 10-year supplier framework through which scientific services can be bought directly by other state bodies.
Capita chief executive Andy Parker said: “The excellent science being carried out by staff at Fera has not yet been able to reach its full commercial potential because of obvious limits on investment, recruitment and marketing.
“Capita’s commercial know-how will complement the Fera team’s scientific expertise, helping it to grow the scientific capability it can offer existing and new customers. Working together, we will create a more efficient and improved organisation allowing scientists to focus on the science and its delivery.
“Crucially, the additional capabilities of Capita and its partners, including Newcastle University, will enable the joint venture to drive commercial and government sector growth. This market is full of opportunity and we anticipate cumulative revenue to the joint venture to progress to at least £700m by year 10.”
He added: “The science services market is one we’ve been excited about for some time and we see this joint venture as laying the foundation for an additional growth market for Capita.”
