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View All NewsUK – Capita reports half year growth
Capita (CPI: LSE) the provider of business process outsourcing solutions and professional support services announced revenue for the six months ending 30 June 2014 of £2.7 billion, an increase of +11% in constant currency compared with £1.8 billion last year.
The company achieved gross profit of £579.4 million, equating to growth of +13% from £511.4 million in H1 2013. Operating profit for the period rose by +11% to £182.4 million, up from £164.8 million last year.
The company has not provided any detail with regards to its staffing businesses, but Staffing Industry Analysts’ estimated that Capita’s Resourcing division represented just over 6% of the company’s total revenue in 2012.
Among its numerous business lines, the company provides a number of HR and recruitment services, including staffing in education, IT, social care, medical, executive, and interim recruitment, as well as managed services.
Andy Parker, Chief Executive of Capita, commented: “I am pleased to report good financial results for the first six months of the year, demonstrating the strength of Capita's sales offering and operational delivery and the health of the UK customer and business process management market… We have had an excellent sales period securing £1.3 billion of contracts and we are continuing to see a high level of activity across our markets, particularly in the private sector, providing a strong future platform for growth.”
“As a consequence of our sales and acquisition performance in 2013 and to date in 2014, we have a high level of revenue visibility for 2014. This, together with the strength of our bid and acquisition pipelines, gives us confidence in our full year performance and provides a good platform for growth in 2015 and beyond,” he added.
During the six month period Capita secured £1.3 billion in contract wins, comprising 90% of new business and 10% renewed contracts. The company continues to see particularly high levels of interest in a number of its newer growth areas; including justice and emergency services, telecommunications, retail, utilities, and the financial services sector.
In 2013, Capita acquired 13 companies for a total cash consideration of £271 million. In 2014, the company invested £240 million in the acquisition of an additional 10 companies. Capita also extended their existing customer management offering into a new geographic region, through the acquisition of a niche customer management business in Germany, to support their current and future clients’ needs in Europe.
In trading today, the company’s share price rose by +3.9% to £12.00, an increase of +17% compared with a year ago. Based on its current share price, the company has a market value of £7.6 billion.