23rd Jul 2014 07:01
LONDON (Alliance News) - Capita PLC Wednesday raised its interim dividend for the half year to end-June and expressed confidence in its full-year performance, despite seeing pretax profit hit by exceptional costs.
The outsourcing company proposed an interim dividend of 9.6 pence, up 10% from 8.7 pence in the previous year.
Capita posted a pretax profit of GBP152.3 million, down from GBP157.5 million in the previous year, despite seeing revenue rise to GBP2.07 billion from GBP1.82 billion, as it was hit by GBP85.7 million in exceptional expenses, higher cost of sales, and higher administrative expenses.
Capita secured GBP1.3 billion contracts in the year to date, down from GBP2.0 billion in the previous year, consisting of 90% new business and 10% new contracts.
Significant contract wins included BAE Systems PLC, the Ministry of Defence, John Lewis Partnership PLC and Transport for London. Capita said that its bid pipeline has been replenished quickly, and currently stands at GBP5.7 billion, compared to GBP5.5 billion in February, including 27 bids.
Capita said that the pipeline consists of 47% private sector - primarily financial services, utilities, telecoms and retail - and 47% public sector. It expects over 50% of these bids to reach decisions by the year end.
It invested a total of GBP240 million acquiring 10 organisations in the year to date to increase its IT networking capabilities, its capabilities in the financial services segment, and to move its customer management operations into a new geography.
Capita said that market demand for its services remains high as organisations are continuously challenged to meet structural, regulatory, technology and customer behaviour based changes.
The company said its high level of revenue visibility, combined with the strength of its bid and acquisition pipelines, gives it confidence in its full-year performance and provides a good platform for growth in 2015.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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