THE CAPITA GROUP PLC - Preliminary Results
THE CAPITA GROUP PLC
Preliminary Results for the year ended 31 December 2009
STRONG PERFORMANCE AND PROSPECTS
Year ended 31 Year ended 31 Change
December 2009 December 2008
Turnover 2,687m 2,441m 10%
Underlying operating profit* 357.7m 320.9m 11%
Underlying profit before tax* 325.1m 277.2m 17%
Underlying earnings per share* 38.75p 33.26p 17%
Total dividend per share 16.8p 14.4p 17%
* excludes intangible amortisation of 28.1m (2008: 18.6m), the non-cash
impact of mark to market movement on financial instruments of 1.4m negative
(2008: 32m negative), loss on disposal of business 7.5m and an estimate for
costs of 30m relating to the suspension of 2 OEIC investment funds for which
Capita Financial Managers is the authorised corporate director.
* Steady organic growth. Major contract wins and renewals of 1bn (2008:
* Bid pipeline stands at 3.7bn (Feb 2009: 3.1bn) increasingly active
* Broadened our operational capability: 177.5m spent on 12 acquisitions.
* Continued underlying operating margin progression: increased by 16 basis
points to 13.31%
* Strong underlying free cash flow up by 28% to 280m (2008: 219m).
* 17% dividend increase, maintaining our dividend cover of 2.3 times.
Paul Pindar, Chief Executive of Capita Group Plc, commented:
"Capita delivered a strong performance in 2009. Organic growth was steady
across the year with a number of new major contracts secured in the year and
with businesses across the Group delivering robust results. Additional spend by
existing clients was lower in 2009 but a focus on optimising our operational
infrastructure and the growth of our offshore operation ensured that we
continued to increase margins.
Capita is well placed to continue its growth and is enjoying a healthy flow of
new business opportunities. Our pipeline of sales prospects, strong forward
visibility of revenues from our long term contracts and consistent operational
performance position us well for further progress in 2010 and thereafter."