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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 &pound5.7bn (Feb 2014: &pound5.5bn) strong

platform for 2015/16 growth

Highest ever level of prospects behind bid pipeline, with opportunities

across our diverse markets

Active acquisition pipeline &pound240m invested to date on 10

businesses, expanding capabilities and market reach to fuel future organic


Good financial performance

Revenue up 13.9% to &pound2.1bn (H1 2013: &pound1.8bn**)

Underlying profit before tax* up 16.0% to &pound238.0m (H1 2013: &pound205.2m**)

Underlying operating margin* of 12.6% (H1 2013: 12.5%**)

Operating cash flow up 21.6% to &pound291m*** (H1 2013: &pound239m) 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                     &pound2,071.0m    &pound1,818.8m   13.9 %      &pound2,071.0m

Operating profit             &pound260.2m      &pound226.8m    14.7 %       &pound182.4m

Profit before tax            &pound238.0m      &pound205.2m    16.0 %       &pound152.3m

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 &pound1.3bn 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.


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