Capita publishes Preliminary Results for 2011

Posted on 23rd February 2012 | Share

Preliminary Results for the year ended 31 December 2011

Steady performance in 2011 and a good platform for further progress in 2012

Financial Highlights

                                                    Year ended                       Year ended            Change
                                                31 December 2011            31 December 2010

Turnover                                         £2,930m                            £2,744m              +7%
Underlying operating profit*          £427.4m                           £395.1m              +8%
Underlying profit before                 £385.2m                            £364.2m              +6%
Underlying earnings per                     48.49p                               44.98p              +8%
Total dividend per share                     21.4p                                 20.0p                +7%

Key points

- £2.0bn of major contract wins secured in 2011 (2010: £0.8bn), including
£0.9bn new contracts and £1.1bn renewals

- Maintaining win rate of just below 1 in 2 reflecting the strength of our
relationships and track record

- Broadened our operational capability and market reach: £341m spent on 21
acquisitions in 2011

- New service delivery capability established in Continental Europe

- Underlying profit before tax increased by 6% to £385.2m

- Underlying operating margin was 14.59% (2010: 14.40%)

- Operating cash flow before settlements[1] of £364m (2010: £442m)

- £620m major contract sales secured to date in 2012

- Selected this month as Recommended Supplier for the Army's Recruiting
Partnering Project

- Despite a number of recent client decisions, pipeline stands at £4.6bn as at
22 February 2012 (July 2011: £4.7bn)

Paul Pindar, Chief Executive of Capita plc, commented:

'2011 was a challenging year in which we achieved reasonable revenue growth
and maintained our underlying operating margin. However, it was also
a successful year for Capita in respect of major sales wins, with a record
total value of £2.0bn new and extended contracts secured during the
year (2010: £0.8bn). This strong sales performance underlines our continued
ability to present innovative service solutions that deliver quality and cost
benefits to our clients, whilst delivering attractive rewards to Capita. We
also completed a series of acquisitions in 2011 which will play a key role in
extending our capabilities, enhancing our propositions to clients and making a
valuable contribution to our long term growth.

We already have good visibility of stronger revenue growth this year due to
renewed organic growth from our major contract sales performance in 2011
and to date in 2012 and the contribution from acquisitions. This visibility
and the current buoyant sales environment, evidenced by the rapid replenishment
of our bid pipeline, underpin our confidence in good growth prospects and
performance for 2012 and beyond.'

Click here to view full results.

View all news articles