New tenders help Capita bounce back

By Daily Mail Reporter
Updated:

 

Outsourcing giant Capita said new tenders in the public sector had bounced back to levels seen before the May 2010 elections and the public sector spending freeze.

It eased fears that the government's appetite for using outsourcers would shrink and shares rose 5.5p to 741p.

Capita has secured contracts worth £313m so far this year. It said the most active public sector markets were local government and defence but that it was also seeing opportunities in central government begin to emerge.

Analysts at Espirito Santo Investment Bank cautioned: 'The challenge will now be to convert this activity.'

Nearly a fifth of Capita shareholders opposed changes to its 2010 deferred annual bonus plan and its co-investment plan while 23.5% opposed the re-election of Paddy Doyle as non-executive director.

The UK's biggest construction firm Balfour Beatty (up 8.6p at 333.7p) is also benefiting from public sector deals. It has bagged £200m worth of local authority contracts. Overall Balfour's business is on track.

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