Capita report positive half year results
Organic revenue growth of 11% (H1 2013: 3%) full year organic
revenue growth expectation of at least 8%, net of attrition
Bid pipeline replenished to a record £5.7bn (Feb 2014: £5.5bn) strong
platform for 2015/16 growth
Highest ever level of prospects behind bid pipeline, with opportunities
across our diverse markets
Active acquisition pipeline £240m invested to date on 10
businesses, expanding capabilities and market reach to fuel future organic
Good financial performance
Revenue up 13.9% to £2.1bn (H1 2013: £1.8bn**)
Underlying profit before tax* up 16.0% to £238.0m (H1 2013: £205.2m**)
Underlying operating margin* of 12.6% (H1 2013: 12.5%**)
Operating cash flow up 21.6% to £291m*** (H1 2013: £239m) 112% cash
conversion (H1 2013: 105%)
Gearing at 2.3 times net debt to EBITDA (H1 2013: 2.2 times)
Good financial performance and sales activity
Underlying Underlying Reported
Financial highlights 2014* 2013** Change 2014
Revenue £2,071.0m £1,818.8m 13.9 % £2,071.0m
Operating profit £260.2m £226.8m 14.7 % £182.4m
Profit before tax £238.0m £205.2m 16.0 % £152.3m
Earnings per share 28.88p 25.82p 11.9 % 18.60p
Interim dividend per share 9.6p 8.7p 10.3 % 9.6p
Andy Parker, Chief Executive of Capita plc, commented:
"I am pleased to report good financial results for the first 6
months of the year, demonstrating the strength of Capita's sales offering and
operational delivery and the health of the UK customer and business process
management market. Our breadth of capability across a diversified and growing
market base enables us to move flexibly across sectors and to maintain a high
level of selectivity regarding the opportunities that we pursue. We have had
an excellent sales period securing £1.3bn of contracts and we are continuing
to see a high level of activity across our markets, particularly in the
private sector, providing a strong future platform for growth.
As a consequence of our sales and acquisition performance in 2013
and to date in 2014, we have a high level of revenue visibility for 2014.
This, together with the strength of our bid and acquisition pipelines, gives
us confidence in our full year performance and provides a good platform for
growth in 2015 and beyond."
*Excludes non-underlying items being: intangible amortisation, acquisition expenses,
net contingent consideration movements, impairments, non-cash impact of mark-to-market finance costs.
**Includes businesses exited in H2 2013.
***Excludes closure costs of businesses exited in H2 2013 and Arch Cru costs.