Capita loving the recession
Good results all round
Everyone's favourite outsourcing firm and public sector provider Capita has had a solid start to the year, growing revenue by 11 per cent - eight per cent in organic terms - and growing profit before tax by 18 per cent.
Capita turned over £1.3bn in the first half of 2009 compared to £1.18bn in the first six months of 2008. Underlying profit before tax was £141.7m against £120.2m last year.
Paul Pindar, chief exec at Capita, said: "We remain confident regarding our prospects. Our operational performance is consistently strong providing an excellent background for further expansion. Demand for outsourcing across our chosen markets continues to be buoyant."
Operating margin is also up to 12.2 per cent against 11.9 per cent last year.
Capita has made nine acquisitions this year at a cost of £92.7m. Contract wins in the period include the 2011 census for the Office of National Statistics, running the allowances system for the Learning and Skills Council. Capita said it has no "material rebids" - defined as deals worth more than one per cent of 2008 turnover - until 2012.
The Competition Commission has ordered Capita to sell off the part of IBS OPENSystems which deals with revenue and benefits. Talks with interested parties are at an advanced stage. ®