14th Dec 2006 07:01
Capita Group PLC14 December 2006 The Capita Group Plc - Trading Update The Capita Group Plc ("Capita") is issuing a trading update ahead of itspreliminary results announcement for the period ending 31 December 2006, due tobe released on 22 February 2007. The strong first half revenue growth has continued in the second half, with ourbusinesses performing well. Since our interim results in July 2006, we have beenselected to deliver significant outsourced services on behalf of: •Prudential UK - to deliver a range of life and pension sales and administration services. The contract is projected to generate revenues of approximately £40m over a 3 year term, after which Prudential have an option to renew on a rolling basis. •Transport for London - to deliver the Congestion Charging scheme from the end of the initial contract in February 2008 until November 2009, a contract extension worth £90m over 21.5 months. In addition, we will administer the Low Emissions Zone Supplemental Agreement (LSA), valued at £14m over 3 years. •Swindon Borough Council - selected as preferred bidder to develop a ten-year incremental strategic partnership worth approximately £140m over 10 years. Final negotiations are currently in progress with the contract expected to commence in early 2007. •Co-operative Insurance - to deliver business processing activities. Subject to final scope of services, the contract is expected to be worth in excess of £250m over a 10 year period, with commencement later in 2007. Capita today announces that its health solutions business has signed anagreement with BT to extend its contract to provide outsourced occupationalhealth services, worth in the region of £13.5m over nine years until 2015. Wehave also been selected to deliver property consultancy services forCambridgeshire County Council worth approximately £15m over the next 7 to 10years, subject to contract. To date in 2006, Capita has therefore won or extended major contracts worth£1.37bn (FY 2005: £1.14bn), strengthening our position as the UK's market leaderin business process outsourcing services to the public and private sectors. Across the Group, we have been successful in securing contracts with both newand existing customers as well as increasing the scope of existing contracts. Inaddition, we are continuing to achieve operating efficiencies through economiesof scale and by accelerating the offshoring of business processes to ourfacility in India. Our markets remain buoyant in both the public and private sectors, driven by ourcustomers' desire to improve service quality and reduce costs. This, togetherwith the excellent revenue visibility we enjoy, gives us confidence that we willdeliver a strong performance in 2006 and 2007. A conference call for investors and analysts will take place today at 8.30am. Toobtain dial-in details please call Elaine Ryman at Financial Dynamics on +44 (0)207 269 7121. For further information: The Capita Group Plc Tel: 020 7799 1525Paul Pindar, Chief ExecutiveShona Nichols, Corporate Communications DirectorCapita Press Office Tel: 0870 2400 488 Financial Dynamics Tel: 020 7269 7121Andrew Lorenz / Susanne Walker This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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