Capita to get fat on govt cuts
2010 results were 'robust'
Outsourcing giant Capita turned in "robust" results for 2010, despite a challenging business environment and a tightening of the government spending tap.
Overall revenues were £1.7bn, up 2 per cent on the year. It reported "underlying profit before tax" of £364.2m, up 12 per cent on the year. This excludes items such as amortisation, intangibles and the like. The actual profit before tax it will be reporting to Companies House is £309.8m, compared to the £258.1m it reported last year.
The company described this as "a good performance ...with the majority of businesses across the Group producing robust results against a challenging background. A focus on optimising our operational infrastructure and on growing our offshore operation ensured that we continued to increase margins."
A brake on public spending, particularly in the wake of the general election, contributed to a "slowdown in decisions on major outsourcing contracts" but Capita believes it is "positioned strongly for securing new business in 2011".
Capita's results report continued: "The need for our public sector clients to achieve substantial cost savings and for private sector clients to increase their efficiency to remain competitive offers significant opportunities for the Group going forward."
Capita made a number of acquisitions last year, and sees no let-up this year.
While noting that the government is committed to cutting central administration budgets by £6bn by 2015, and local admin budgets by 7.1 per cent a year over the next four years, Capita said: "We are well-placed to help organisations to introduce new, more sustainable and streamlined ways of working to meet public needs." Which gives us all something to look forward to ... ®