Connecting to LinkedIn...


Capita Half year results for the 6 months to 30 June 2013

Capita Half year results for the 6 months to 30 June 2013

Record sales growth and good financial performance

Financial highlights              Half year 2013  Half year 2012 Change

Revenue                                    &pound1,819m        &pound1,607m     13%

Underlying operating profit      &pound226.8m        &pound214.1m      6%

Underlying profit before tax     &pound205.2m        &pound186.4m     10%

Key points

Delivering long term growth

- A record &pound2.0bn of major contract wins secured in H1 2013 (H1

2012: &pound1.1bn) [2] including:

  - Telef&oacutenica UK (O2), Capita's largest ever contract win by annual


  - Cabinet Office, Best Practice IP joint venture

  - Carphone Warehouse, customer management contract

  - London Borough of Barnet, property services contract

- Contract win rate of higher than 1 in 2 (by value)

- Organic growth of 3% full year organic growth expectation now at

least 8%

- Significant level of sales activity pipeline steadily

replenishing, now &pound4.2bn (Feb 2013: &pound5.2bn)

- Selective acquisitions supporting organic growth &pound198m invested

to date in 2013

Good financial performance

- Revenue up 13% to &pound1.8bn (H1 2012: &pound1.6bn)

- Underlying profit before tax [1] up 10% to &pound205.2m (H1 2012: &pound186.4m)

- Underlying operating margin [1] of 12.5% (H1 2012: 13.3%)

- Operating cash flow up 20% to &pound242m (H1 2012: &pound201m) and 107% cash

conversion (H1 2012: 94%)

- Gearing remains at 2.2 times net debt to EBITDA

Paul Pindar, Chief Executive of Capita plc, commented: "Our strong sales performance over the last 12 months and contributions from 2012 and 2013 acquisitions provide us with excellent revenue visibility for the full year 2013 and already deliver significant incremental revenue growth in 2014. The return of strong organic growth, improved cash conversion, a replenished bid pipeline and a good pipeline of potential acquisitions, underpin our confidence in full year performance and provide a strong platform for further progress in 2014 and beyond.

"We have reported another period of very strong sales growth in the first 6 months of 2013, with over &pound2.0bn of wins secured with clients including Carphone Warehouse, the Cabinet Office and Telef&oacutenica UK (O2). This follows a record year of sales wins in 2012 and we are therefore implementing a high number of major new contracts throughout 2013, including the two largest new contracts in Capita's history.

"Our sales performance has been achieved due to the unrivalled breadth of our service offering which has been built up through both internal development and a series of small to medium sized acquisitions over the past 25 years. We have continued to enhance our client propositions through further acquisitions this year, spending &pound198m on 9 businesses, and we have further attractive potential opportunities in our acquisition pipeline."


Articles similar to

Articles similar to