Feeds

Capita finds new contracts 'pleasing'

More business than ever

Build a business case: developing custom apps

Capita notched up record contract wins for the seven months of 2006, the firm's chairman Rod Aldridge OBE noted today in the last set of results he will report to city before he steps down.

Aldridge announced his resignation in March following allegations that his donations to the Labour party had been rewarded with contracts for business with the government. He said at the time that the allegations were "spurious".

In his last chairman's statement today, Aldridge noted new contract wins with Birmingham, Rossendale and Westminster councils, the Northern Ireland Civil Service, the DTI and the BBC. Private sector wins included DSG Plc and Fujitsu.

Contract wins totalled £806m, of which £624m came from new contract wins, while the rest came from contract renewals.

Aldridge noted that despite the capital outlay required to get all this new business off the ground, Capita had still managed to post a 12.2 per cent increase in operating margins during the six months to 30 June 2006. Operating profit was up 27 per cent to £103.2m.

"This is a pleasing performance given the higher than usual level of implementation costs associated with the start up of a record number of new contracts," he said.

"The improving margin reflects the continued increase in economies of scale in the business," he added.

Turnover was up 23 per cent to £845m. Six per cent of this growth was attributable to acquisitions, of which Capita made seven in the six month period. Pre-tax profits were up 24 per cent to £92.4m. It plans further acquisitions in the second half. The firm also had a bid pipeline of £2.8bn in accounts where it had been shortlisted with four or fewer competitors.®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.