11th Dec 2015 07:22
LONDON (Alliance News) - Capita PLC on Friday said it has been awarded a contract to provide customer management services to Unitymedia, Germany's second largest broadband and cable provider, worth EUR88.0 million over seven years.
"Capita will deploy a number of service improvement initiatives to help Unitymedia adapt to the changing demands of its customers and reduce its costs," the outsourcer said in a statement.
The company, which is in the FTSE 100 index of the biggest companies listed in London, said its bid pipeline currently stands at GBP5.1 billion, a fall from the GBP5.4 billion seen in July. The pipeline is comprised of 29 bids, with 98% representing new business and the remainder being renewals.
Capita said its pipeline remains "slightly weighted" to the private sector as opposed to the public sector.
The outsourcer reiterated it is on track for "low double digit" underlying revenue growth in 2015. That includes organic growth - that which is not derived from acquisitions - of around 4.0% net of attrition. Capita noted "somewhat softer" market conditions in its specialty nursing and supply teacher staffing businesses towards the end of the year.
Capita said it expects its underlying operating margin to be within its targeted 12.5% to 13.5% range and "comfortably ahead" of the 12.7% seen in the first half of the year.
"With the continued growth of Capita across our target markets and a greater focus on technology-enabled solutions, we have reviewed and have disposed, or are in the process of disposing, of a number of small profitable or low growth businesses which lack strategic fit," Capita said in a statement.
"We have also reviewed the future benefit associated with intangible and other assets in our insurance division. The impact of these initiatives will be included within non-underlying items and are likely to result in a number of non-cash charges in our full year results," the company added.
Capita said it expects organic growth, which refers to that not achieved via acquisition, to "accelerate" in 2016.
"The market for customer services and business process management remains active and provides a strong platform for growth in the UK and Northern Europe over the medium to long term," Capita said.
Separately, Work Group PLC said it has conditionally agreed to sell its UK businesses and subsidiaries to Capita for GBP2.0 million.
Work Group will become an investing company under stock exchange rules, due to a so-called fundamental change to its business.
By Samuel Agini; [email protected]; @samuelagini
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