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CAPITA PLC Preliminary Results for the year ended 31 December 2011

CAPITA PLC  Preliminary Results for the year ended 31 December 2011

Steady performance in 2011 and a good platform for further progress in 2012

Financial Highlights

 

Year ended

31 December 2011

Year ended

31 December 2010

Change

Turnover                

&pound2,930m

&pound2,744m

  7%

Underlying operating profit*

&pound427.4m

&pound395.1m

  8%

Underlying profit before tax*

&pound385.2m

&pound364.2m

  6%

Underlying earnings per share*

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 &pound71.9m (2010: &pound47.8m), the non-cash impact of mark to market movement on financial instruments of &pound7.1m (2010: &pound6.6m), and &pound3.3m (2010: &poundnil) for increased counterparty credit and currency risk. After these

non-underlying items: reported operating profit is &pound355.5m (2010: &pound347.3m), reported profit before tax is &pound302.9m

(2010: &pound309.8m) and reported earnings per share is 39.16p (2010: 38.44p).

Key points 

&pound2.0bn of major contract wins secured in 2011 (2010: &pound0.8bn), including &pound0.9bn new contracts and &pound1.1bn 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: &pound341m spent on 21 acquisitions in 2011

New service delivery capability established in Continental Europe

Underlying profit before tax increased by 6% to &pound385.2m

Underlying operating margin was 14.59% (2010: 14.40%)

Operating cash flow before settlements[1] of &pound364m (2010: &pound442m)

&pound620m 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 &pound4.6bn as at 22 February 2012

(July 2011: &pound4.7bn)

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 &pound2.0bn new and extended contracts secured during the year (2010: &pound0.8bn). 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.”

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