20th Dec 2005 07:00
Capita Group PLC20 December 2005 20 December 2005 Pre Close Period Trading Update The Capita Group Plc ("Capita") issues the following trading update prior to aconference call today with stockbrokers' analysts and entering a close period inrespect of its preliminary results for the year to 31 December 2005. Thepreliminary results will be announced on 23 February 2006. Since the announcement of Capita's interim results in July 2005, trading hasbeen very encouraging. We have continued to strengthen our market leadingposition in the growing Business Process Outsourcing and service transformationmarket. In the first half of 2005, we achieved good organic growth in turnover andprofit, augmented by a number of small acquisitions in some new market segmentswhich offer good growth potential. This progress has been maintained in thesecond half. We continue to leverage our scale by increasing the utilisation ofour existing infrastructure and the volume of transactions processed, as well asmaximising our purchasing power. These factors, together with a continued focuson reengineering our own business processes, will ensure we make furtherprogress in widening our operating margins for the year as a whole. So far this year, apart from securing a stream of new and repeat business acrossour broad portfolio of businesses, we have announced £843 million of significantnew contracts and contract extensions. Of particular note, in early December, we were recommended by Birmingham CityCouncil, the UK's largest Local Authority, as preferred partner for a long termprogramme to improve service efficiency and quality. The Information andCommunications Technology (ICT) transformation element of this partnership alonewill amount to £424 million over 10 years. Further work is expected to becommissioned through the partnership to support the business transformationprogramme, which will increase the value of the relationship over the 10 yearperiod. Additionally, on 15 September 2005, we announced that we had entered intodetailed discussions with Zurich concerning a potential business relationship todeliver business processing activities to support the continuing growth ofZurich's UK Life operations. These discussions are progressing well and weexpect to be able to make a further announcement about this relationshipshortly. Current trading is strong and the results for 2005 will be pleasing. Moreover,many of the ingredients are already in place for a successful 2006 and we lookforward to the New Year with considerable optimism. -Ends- For further information please contact: The Capita Group Plc +44 (0)20 7799 1525Rod Aldridge, Executive ChairmanPaul Pindar, Chief ExecutiveShona Nichols, Corporate Communications Director The Capita Press Office 0870 2400 488 The Capita Group Plc is the UK's leading provider of integrated professionalsupport service solutions. The Group's service capabilities encompass customerservices, financial services, human resource services, software services,systems and strategic support and property services delivered to both publicsector and private organisations. With over 23,000 employees at more than 230offices across the UK and Ireland, Capita is quoted on the London Stock Exchange(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285million. Capita has secured a number of awards including Best BPO Services Provider 2004. Further information on The Capita Group Plc can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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