Capita first half profits grow 7%

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Capita first half profits grow 7%

kathleen Hall

Profits at outsourcing company Capita grew 7% to £174m in the first six months of 2011, compared to the same period in 2010. During the first half of the year the company's turnover grew by just 3% to £1.36bn.

The company listed: a £570m contract with Zurich over the next 15 years; a ten-year £149m contract with MetLife; and a five-year £100m deal with the DVLA as its major wins in this period.

Paul Pindar, chief executive of Capita, said: "Against a backdrop of trading conditions which have continued to be challenging, the business has progressed in 2011 and we are now experiencing strong major contract sales performance and high levels of acquisition activity. We have secured contracts and renewals totalling £1.1bn in the first half of the year, more than double the value achieved in the first half of 2010. This reflects the increasingly strong demand for outsourcing across the public and private sectors after a two-year period of subdued sales activity."

The company's bid pipeline has also been replenished to its previous record level of £4.7bn of opportunities, with buoyant activity in the local government and life and pensions markets and growing activity across central government, said Paul Pindar.

"Our pipeline of sales prospects, visibility of revenue from long-term contracts and acquisition activity position us well for steady progress in 2011 and underpin strong growth prospects for 2012 and beyond," Pindar said

Earlier this month Capita bought contact centre business Ventura for £65m.


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