Capita reports solid sales and profits growth for the year

Capita’s underlying revenues were up 7 percent to £4.67 billion for the year, with operating profits up 11 percent to £639 million (increasing margins to 13.7 percent against 13.2 percent last time).

On a like-for-like basis – excluding businesses exited and held for sale – sales were actually up 11.8 percent.

Andy Parker, chief executive of Capita, said: “We delivered good financial results in 2015, including 4 percent organic revenue growth, an improvement in our operating margin and a high level of cash generation.

“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.”

As a result, the company has raised its margin target range to between 13 percent and 14 percent. In 2016, it is targeting organic revenue growth of “at least 4 percent”.

The outsourcer spent £402 million over the past year acquiring 17 businesses. Earlier this week, the company announced a new financial services framework with Wandsworth and Richmond councils in London, which is open to other London councils.

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Antony Savvas

York, UK-based Antony Savvas has been a technology journalist for 25 years and has expertise in all major areas of enterprise and consumer IT. He has worked for a number of leading technology magazines and websites and his work is syndicated across the internet. He also undertakes corporate work for some of the world's leading technology companies.