Feeds

Capita: We've spent £150m on acquisitions... SHOW US the MONEY

Can't get damn jammed turnover dial to move up

Business security measures using SSL

Serial acquirer Capita IT Services reported a low-single digit revenue jump for the first half of calendar 2014, but given the numerous acquisitions made this looks to be something of a commercial damp squib.

The techie arm bulked up sales by just 2.7 per cent year-on-year to £235m in the period, not including the £60m worth of inter-segment revenues which was up on the £53.7m posted in the same period in 2013.

The top line includes 12 months' contribution from Northgate Managed Services, acquired for £65m in February of the last calendar year; a quarter's worth of sales from swallowed security reseller NTS; and some months of sales from Updata

NMS alone turned over £141.6m in fiscal '12, some 11 months before it was devoured by CITS, while NTS had a turnover of £10.6m in calendar '13, and Updata turned over £33.2m in fiscal '13 ended last June.

These three acquisitions alone cost Capita more than £150m.

It is not clear if some of this revenue was accounted for in the Professional Services subsidiary - here sales grew to £272.1m from £256.4m in the prior year - or in other areas.

It could of course be that sales declined in the time before the acquisitions were concluded or as Capita integrated the newbies.

The ITS wing at Capita has often come under the management spotlight for a relatively weak performance in the group, and it has been through regular restructures with the latest coming last month.

However, the unit was given some praise this morning, with Capita saying ITS contributed to a "underlying operating margin" rise of, er, 0.1 per cent to 12.6 per cent.

ITS posted pre-tax profits of £15.3m, up from £10m in the previous year's corresponding period.

At group level, the business process outsourcing giant said external revenues jumped nearly 14 per cent to £2.071bn and it made a profit before tax of £152.3m, down from £157.5m on the back of a rise in costs.

We asked Capita for a chance to chat about the figures, and are still waiting to hear back from one of their expert beanies. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.