Capita goes hunting in economic gloom

Capita Group Plc has issued a bright and breezy outlook for 2009 and said it expects the full-year results will be in line with predictions.

The IT services company, whose contracts include payment collections from the UK’s TV licence holders and supplying newly launched websites for the NHS, issued an interim trading statement this morning.

It said it was confident it would see steady revenue growth from its public sector and corporate contracts over the coming year.

The outsourcing firm, which lost the London congestion charge scheme to IBM in October 2007, has a less than glorious history in its handling of public sector contracts.

Despite that, Capita said it won contracts worth £1.21bn in the 10 months to 31 October this year and insisted it has reasons to be cheerful.

"With the contracts won this year, trading prospects across our businesses looking steady and a buoyant bid pipeline, we have the ingredients in place to perform well in 2009 and beyond," said Capita.

The firm said it has a reasonable amount of cash stashed away and that it aims to keep capital expenditure in check at or below four per cent of revenue.

It swept aside the current economic turbulence hitting many sectors and businesses in the UK. Instead it said the turmoil offered an opportunity for Capita to swallow up more companies as part of its growth strategy for the year ahead.

Shares in Capita are currently trading at 620.5 pence on the London Stock Exchange, down 0.24 per cent. ®