The Channel logo

News

By | Joe Fay 23rd February 2012 14:18

Capita gets fat slower as government slims down

Subdued 2011, looking good for 2012

The government's austerity program has meant tightened belts at Capita, with the services giant citing reduced public sector revenues as a key reason for subdued revenue growth and a slight dip in pre-tax profits in 2011.

However, the firm said it had succeeded in grabbing new business and it was again seeing organic growth from existing clients, which underpins "confidence in good growth prospects and performance for 2012 and beyond".

Total turnover was £2.9bn for the year ending 31 December, a 7 per cent rise on the previous year. Pre-tax profits were £302.9m, a slight dip on the previous year's £309.8m.

As is the vogue among services companies these days, the firm chose not to emphasise pre-tax profits - ie, what it reports to Companies House - but instead trumpeted "underlying" pre-tax profits of £385.2m, which were up 6 per cent once intangible amortisation, release of contingent consideration and a number of other charges were excluded.

IT services and consulting turned in third party revenues of £600.3m, generating operating profits of £33.1m – compared to last year's £453.2m with operating profits of £44.7m.

CEO Paul Pindar said last year was "challenging" but that Capita had achieved "reasonable revenue growth and maintained our underlying operating margin".

He added: "We already have good visibility of stronger revenue growth [in 2012]", thanks to renewed organic growth and new business.

The 2011 figures had been hit by the "more challenging economic environment including a range of austerity measures implemented across government".

This had particularly hit Capita's property and IT and resourcing business. Organic revenues in 2011 actually dropped by 7 per cent. ®

comment icon Read 1 comment on this article alert Send corrections

Opinion

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust