25th Feb 2016 07:38
LONDON (Alliance News) - Capita PLC on Thursday said it is looking for organic revenue growth of at least 4.0% in 2016, as the outsourcer reported lower pretax profit in 2015.
Pretax profit fell to GBP112.1 million in 2015, from GBP292.4 million in 2014. On an underlying basis, which is stated before the cost of business exits and other items, pretax profit rose to GBP585.5 million from GBP535.7 million.
Capita lifted its dividend for the year as a whole to 31.7 pence from 29.2p.
Other non-underlying charges included an impairment of assets in the company's life and pensions division of GBP76.7 million as a result of legislative changes. Other charges included a GBP28.3 million impairment of goodwill in the company's insurance business, and a further GBP17.2 million provision in relation to settlements in its asset services arm.
"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%," Chief Executive Andy Parker said.
The company's underlying operating margin was 13.7% in 2015, up from 13.5% the prior year on a like for like basis.
Parker said the group will target organic revenue growth of at least 4.0% in 2016, driven by the combination of growth from the group's divisional businesses and conversion of its bid pipeline.
Capita said underlying revenue grew by 11.8% on a like for like basis in 2015, including 4.3% organic growth. Those figures excluded businesses exited and held for sale from both 2015 and 2014.
By Samuel Agini; [email protected]; @samuelagini
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