Robust contract and acquisition activity see Capita's operating profit rise 10% in H1 2016
Capita plc has announced its first half results for the six months to 30th June 2016.
In H1 2016 the company reported underlying revenue of £2,405m, up 5% from £2,283m in H1 2015 (reported revenue was £2,430m).
Underlying operating profit for H1 2016 was £317.6m, up 10% from £288.8m in H1 2015 (reported operating profit was £236.3m).
Underlying profit before tax for H1 2016 was £285.3m, up 8% from £264.9m in H1 2015 (reported profit before tax was £186.1m).
Andy Parker, chief executive, said, “In the first half of 2016, Capita achieved good profit growth driven organically by major contracts and our trading businesses, and through acquisitions made part way through 2015. We also delivered strong cash flow and robust sales and operational performance.
“While it is too early to know the impact of the recent EU referendum, it has created increased uncertainty, particularly in the financial services sector, and we are continuing to experience some delays in decision making in the short term. However, we expect this to be more than offset in the medium-term by incremental opportunities that arise as clients respond to the impacts of the UK leaving the EU.
“The structural drivers for our services remain strong and Capita has a good track record of operating through political and economic cycles. We are making steady progress towards achieving around 4% organic growth in 2016 and remain confident of the strength of our business model in creating continued profitable growth into the future."