Capita hits heights as cuts fail to curb deals

By Daily Mail Reporter
Updated: 16:26 EDT, 24 February 2011

Capita unveiled a record pipeline of potential new work, scotching fears that the coalition’s austerity cuts would curb growth at the outsourcing giant.

The group, which earns around half its revenues from the public sector, is bidding for £4.7bn of new contracts, compared to £3.7bn a year ago, it revealed yesterday.

Since the start of the year Capita has won contracts worth £244m – nearly a third of the total value of orders booked in 2010.

Capita, which runs a criminal records service for the Home Office, had been hit by a ‘slowdown in decision making’ last year as the new government put major spending decisions on hold.

But chief executive Paul Pindar said 2011 had a ‘better feel about it’ as customers, including Whitehall departments and local councils, dusted down shelved outsourcing plans.

Despite last year’s ‘headwinds’, underlying pre-tax profits rose 12pc to £364m in 2010, allowing the company to raise its dividend by 19pc to 20p a share. Shares surged 45.5p to 715.5p.