THE CAPITA GROUP PLC has announced its Preliminary Results
THE CAPITA GROUP PLC has announced its Preliminary Results for the year ended 31 December 2010
GOOD PERFORMANCE AND PROSPECTS
Year ended 31 Year ended 31 Change
December 2010 December 2009
Turnover 2,744m 2,687m 2%
Underlying operating profit* 395.1m 357.7m 10%
Underlying profit before tax* 364.2m 325.1m 12%
Underlying earnings per share* 44.98p 38.75p 16%
Total dividend per share 20.0p 16.8p 19%
*excludes items which the Group treats as non-underlying, which are: intangible amortisation, acquisition expenses, business disposals and non-cash mark to market gains or losses on financial instruments. In 2009 the provision for Arch Cru was also excluded. See notes 2 and 3.
* Bid pipeline stands at a record 4.7bn (Feb 2010: 3.7bn) increasingly
* Major contract wins and renewals in 2010 of 795m (2009: 1bn)
* 244m major new contracts and renewals secured in first 7 weeks of 2011
* Broadened our operational capability and market reach: 301m spent on 12
acquisitions in 2010
* Expanded our Indian capabilities and creating a new service delivery
capability in Continental Europe
* Underlying profits before tax advance by 12% to 364.2m
* Continued operating margin progression: increased by 109 basis points to
14.40% (2009: 13.31%)
* Underlying operating cash flow up by 1% to 442m (2009: 437m)
* Earnings per share growth of 16% to 44.98p (2009: 38.75p)
* 19% dividend increase, with dividend cover of 2.25 times.
Paul Pindar, Chief Executive of Capita Group Plc, commented:
"Capita delivered a good performance in 2010, with the majority of businesses across the Group producing robust results against a challenging background. A focus on optimising our operational infrastructure and on growing our offshore operation ensured that we continued to increase margins.
In 2010, we faced a slowdown in decisions on major outsourcing contracts, lower additional spend by existing clients and reduced activity in some of our transactional trading operations due to constraints on public spending. Notwithstanding these challenges, Capita is positioned strongly for securing new business in 2011.
We enter 2011 with a record bid pipeline, increasing activity across the public and private sectors and some encouraging new contract wins. The need for our public sector clients to achieve substantial cost savings and for private sector clients to increase their efficiency to remain competitive offers significant opportunities for the Group going forward.
Capita's 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 2011 and thereafter."