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Capita operating profit up 11%

Financial highlights Underlying* Underlying*  Underlying*  Reported

                       2014        2013      YOY change

Revenue                &pound4,372m     &pound3,851m       14%      &pound4,378m

Operating profit       &pound576.3m     &pound516.9m       11%      &pound388.9m

Profit before tax      &pound535.7m     &pound475.0m       13%      &pound292.4m

Earnings per share     65.15p      59.40p        10%       35.79p

Total dividend per

share                   29.2p       26.5p        10%       29.2p

*Excludes non-underlying items detailed in note 2 business disposal, note 3

administrative expenses and note 4 net finance costs, in the notes to the

preliminary statement.



Strong financial and operating performance in 2014

- Underlying revenue growth* of 14%, including 9% organic growth

- Underlying operating margin* 13.2% (2013: 13.4%)

- Underlying profit before tax* up 13% to &pound535.7m (2013: &pound475.0m)

- Underlying earnings per share* up 10% to 65.15p (2013: 59.4p)

- Total dividend up 10% to 29.2p (2013: 26.5p)

- Underlying operating cash* conversion rate of 112% (2013: 106%)

- Underlying free cash flow* up 18% to &pound368m (2013: &pound312m)

- Post-tax ROCE* 14.8% (2013: 15.5%)

- Reported profit before tax up 36% to &pound292.4m (2013: &pound215.0m)

- &pound1.7bn contract wins (2013: &pound3.3bn), with contract win rate of 1 in 2 (by


- &pound310m spent on 17 acquisitions to enhance capability and facilitate future

  organic growth


An excellent start to 2015

- &pound1.1bn contracts secured to date (2014: &pound588m), including Fera preferred

  bidder and Sheffield extension

- Bid pipeline increased to &pound5.1bn (November 2014: &pound4.1bn), 53% private and

  47% public sector

- Agreement to acquire avocis adds significant future growth platform in

  Germany and Switzerland

- Good visibility of low double digit revenue growth in the full year


Platform to drive further value creation

- We operate in a large addressable market and have significant scope to

  increase penetration

- We focus upon leveraging our competitive advantages of scale, unique breadth

  of capabilities and

experience in delivering transformational partnerships

- We continue to manage the business to deliver strong EPS growth, cash flow

  and return on capital.


Andy Parker, Chief Executive of Capita plc, commented:

"2014 was a year of excellent financial performance, with 9% organic revenue

growth, sustained high returns and levels of cash generation, and an active

year for acquisitions. We have good visibility of strong revenue growth in

2015, which will be driven by the conversion of our bid pipeline, acquisitions

and the full benefit from last year's contract wins and acquisitions. We have

significant scope to increase penetration of our large and growing addressable

market, supported by a number of structural factors such as fiscal pressure,

digitisation, regulation and demographics and our own competitive advantages.

This leads us to look forward to the medium to long term with confidence."




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