11% operating profit increase in 2015 for Capita
Capita has announced its full year results ended on 31st December 2015.
Underlying revenue for the year was £4,674m, a year-on-year increase of 7%, up from £4,372m in 2014. The company reported that underlying operating profit rose 11% from £576.3m in 2014 to £639.0m in 2015. Underlying profit before tax rose to £585.5m, up 9% from 2014 (£535.7m).
According to Capita, underlying earnings per share for 2015 were 70.73p. In 2014, these were 65.15p, a rise on 9%. Underlying total dividend per share was 31.7p, up 9% from 29.2p in 2014.
In 2015, the company secured £1.8bn in contract wins (2014: £1.7bn) in health, science, local government and financial services. It spent £402m on 17 acquisitions and its Fera partnership.
To date, in 2016, the company has secured £251m in contracts secured (2015: £1.1bn). Bid pipeline total contract has a value of £4.7bn (February 2015: £5.1bn), with a weighted average contract length of six years (February 2015: eight years). Full year group operating margin range increased to between 13.0% and 14.0%, expected for the foreseeable future (previously 12.5% to 13.5%).
Andy Parker, chief executive of Capita plc, commented, “We delivered good financial results in 2015, including 4% organic revenue growth, an improvement in our operating margin and a high level of cash generation. Our largest ever acquisition, avocis, has provided a strong growth platform in Europe. We have re-positioned the business away from certain non-core lower growth businesses and enter the current year in a strong strategic and financial position, enabling us to raise our margin target range to between 13.0% and 14.0%.
In 2016, we are targeting organic revenue growth of at least 4%, driven by the combination of growth from our divisional businesses and conversion of our bid pipeline. In the longer term, we remain excited about the significant structural growth opportunities in our markets and will continue to manage the business to deliver strong EPS growth, cash flow and return on capital.”