Capita thriving after a record for new deals

 
10 April 2012

New contracts worth £2 billion including running the Teachers' Pension Scheme, organising car tax for the DVLA and TV licensing for the BBC helped outsourcer Capita to enjoy a 6% rise in profit to £385.2 million last year.

Paul Pindar, chief executive, said 2011 had been a "challenging year" for the company that runs swathes of Britain's public services but then pointed out its £2 billion of new business was a record.

He added: "We also completed a series of acquisitions in 2011 which will play a key role in extending our capabilities."

They included spending £7.5 million on a translation business that works in courts, prisons and police stations, while last month Capita beat rival Serco to a £500 million deal to run recruitment services for the British Army.

David Brockton, support services analyst at Espirito Santo, said: "Capita had a good year for wins in 2011, but this mostly reflected renewals and a poor comparator in 2010."

Shares in the FTSE 100 firm rose 34p, or 5%, to 722.25p.

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