London: The G4S Olympic security fiasco may have given public sector outsourcing a bad name in the UK in recent weeks, but the UK's biggest provider, Capita plc, is riding a wave of public sector demand as government cuts bite.
Today the professional services group and BPO specialist reported half year prep-tax profits to 30 June 2012 up 10% to £190.7m on revenue up 15% to £1,607m.
"Public sector work is looking encouraging, with austerity measures fuelling that. If you look across central government and local government together it is now somewhere in the region of 58 percent of our (4.1 billion pound) bid pipeline," Chief Executive Paul Pindar told analysts.
Half year highlights:
- A record £1.3bn of major contract wins secured in H1 2012 (H1 2011: £1.1bn)
- Improving organic growth rate; clear visibility of meeting full year 2012 expectations
- High level of sales momentum; bid pipeline replenished well after recent wins to £4.1bn (February 2012: £4.6bn)
- Enhanced offering through acquisitions; £642m spent in the 2 years to December 2011 and a further £129m invested in 10 acquisitions to date in 2012
- £271m raised in equity placing to fund stronger pipeline of potential acquisition opportunities
Paul Pindar commented, 'With organic growth returning as expected, cash conversion improving and a good pipeline of potential acquisitions, Capita is positioned well for further growth.
"As a result of stronger major contract sales performance over the past 18 months, together with the contribution from recent acquisitions, we have clear visibility of revenue growth in 2012. These factors, coupled with the current buoyant sales environment, underpin our confidence in full year performance and provide a strong platform for further progression in 2013.'
A full financial statement, with details of new contracts and the performance of acquired businesses is available here.