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Capita plc Reports Strong H1 performance and a positive outlook

Capita plc Reports Strong H1 performance and a positive outlook 

  * Revenue up 15%, with 2011 & H1 2012 acquisitions contributing 15% and flat

   organic growth after attrition on 4 contracts of 5%, most of which related

   to activities that ended in H1 2011

  * Underlying profit before tax increased by 10% to &pound190.7m (H1 2011: &pound174.0m)

  * Underlying operating margin of 13.5% (H1 2011: 13.8%)

  * Operating cash flow of &pound201m (H1 2011: &pound180m) and cash conversion improved

   to 93% from 85% at the full year 2011 (H1 2011: 93%)

Financial Highlights                              Half year 2012     Half year 2011       Change


Revenue                                               &pound1,607m               &pound1,400m               15%


Underlying operating                         &pound216.6m               &pound193.0m                 12%



Underlying profit before                   &pound190.7m                &pound174.0m                10%



Underlying earnings per                     24.19p                 21.95p                  10%



Interim dividend per share                 7.9p                      7.2p                       10%

* Excludes non-underlying items being: intangible amortisation and acquisition

expenses of &pound47.4m (H1 2011: &pound33.8m), the non-cash impact of mark to market

movement on financial instruments of &pound0.5m credit (H1 2011: &pound1.2m credit).

After these non-underlying items: reported operating profit is &pound169.2m (H1 2011

&pound159.2m), reported profit before tax is &pound143.8m (H1 2011: &pound141.4m) and reported

earnings per share is 18.70p (H1 2011: 18.01p).

Key points - Creating profitable growth

  * A record &pound1.3bn of major contract wins secured in H1 2012 (H1 2011: &pound1.1bn)


  * Improving organic growth rate clear visibility of meeting full year 2012



  * Maintaining win rate of 1 in 2 reflecting our strong client propositions

   and operational capability


  * High level of sales momentum bid pipeline replenished well after recent

   wins to &pound4.1bn (February 2012: &pound4.6bn)


  * Enhancing our offering through acquisitions &pound642m spent in the 2 years to

   December 2011 and a further &pound129m invested in 10 acquisitions to date in



  * &pound271m raised in equity placing to fund stronger pipeline of potential

   acquisition opportunities



Paul Pindar, Chief Executive of Capita plc, commented: "With organic growth returning as expected, cash conversion improving and a good pipeline of potential acquisitions, Capita is positioned well for further growth. As a result of stronger major contract sales performance over the past 18 months, together with the contribution from recent acquisitions, we have clear visibility of revenue growth in 2012. These factors, coupled with the current buoyant sales environment, underpin our confidence in full year performance and provide a strong platform for further progression in 2013."


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