Preliminary Results for the year ended 31 December 2011
Steady performance in 2011 and a good platform for further progress in 2012
Year ended Year ended Change
31 December 2011 31 December 2010
Turnover £2,930m £2,744m 7%
Underlying operating profit* £427.4m £395.1m 8%
Underlying profit before £385.2m £364.2m 6%
Underlying earnings per 48.49p 44.98p 8%
Total dividend per share 21.4p 20.0p 7%
* Excludes non-underlying items being: intangible amortisation and acquisition expenses and release of contingent consideration of £71.9m (2010: £47.8m), the non-cash impact of mark to market movement on financial instruments of £7.1m (2010: £6.6m), and £3.3m (2010: £nil) for increased counterparty credit and currency risk. After these non-underlying items: reported operating profit is £355.5m (2010: £347.3m), reported profit before tax is £302.9m (2010: £309.8m) and reported earnings per share is 39.16p (2010: 38.44p).
- £2.0bn of major contract wins secured in 2011 (2010: £0.8bn), including
£0.9bn new contracts and £1.1bn renewals
- Maintaining win rate of just below 1 in 2 reflecting the strength of our relationships and track record
- Broadened our operational capability and market reach: £341m spent on 21 acquisitions in 2011
- New service delivery capability established in Continental Europe
- Underlying profit before tax increased by 6% to £385.2m
- Underlying operating margin was 14.59% (2010: 14.40%)
- Operating cash flow before settlements of £364m (2010: £442m)
- £620m major contract sales secured to date in 2012
- Selected this month as Recommended Supplier for the Army's Recruiting Partnering Project
- Despite a number of recent client decisions, pipeline stands at £4.6bn as at 22 February 2012 (July 2011: £4.7bn)
Paul Pindar, Chief Executive of Capita plc, commented:
"2011 was a challenging year in which we achieved reasonable revenue growth and maintained our underlying operating margin. However, it was also a successful year for Capita in respect of major sales wins, with a record total value of £2.0bn new and extended contracts secured during the year (2010: £0.8bn). This strong sales performance underlines our continued ability to present innovative service solutions that deliver quality and cost benefits to our clients, whilst delivering attractive rewards to Capita. We also completed a series of acquisitions in 2011 which will play a key role in extending our capabilities, enhancing our propositions to clients and making a valuable contribution to our long term growth.
We already have good visibility of stronger revenue growth this year due to renewed organic growth from our major contract sales performance in 2011 and to date in 2012 and the contribution from acquisitions. This visibility and the current buoyant sales environment, evidenced by the rapid replenishment of our bid pipeline, underpin our confidence in good growth prospects and performance for 2012 and beyond."
 Settlements consist of a £17.9m settlement for Arch cru and an additional pension contribution of £10.0m on the transfer back of the Cumbria County Council pension scheme.