Capita share price: Outsoursing giant releases half-yearly report

on Jul 29, 2015
Updated: Oct 21, 2019

Capita Plc (LON:CPI) today released its financial results for the six months ended June 30. Key information is provided below, with more to follow:

**Generating growth: contract wins, bid pipeline and win rate all increased**
• £1.6bn of major contract wins (H1 2014: £1.3bn) including milestone contracts and frameworks in health and science:
– Sole provider on £1bn NHS England Primary Care Support Services framework,with initial contract valued at up to £400m over 7 to 10 years
– Fera joint venture with 10 year Defra contract, anticipated revenue of £700m over first 10 years, provides a strong platform for penetration of wider science market

– Central London Community Health NHS Trust contract, worth £80m over 10 years
– Sheffield City Council extension, worth £140m – £170m over 6 years from January 2016
• Major contract win rate above 2 in 3
• Bid pipeline £5.4bn (Feb 2015: £5.1bn), swiftly replenished after significant gains in the first half
• Active period for acquisitions: £279m invested in 11 businesses
• Formation of Capita Europe, following the acquisition of avocis, adds an exciting new growth platform
• Vertex Mortgage Services acquisition supports our ambition to become the mortgage processing partner of choice for existing mortgage providers and challenger banks
• New organisational structure: further alignment of capabilities and sectors to drive additional growth.
**Robust financial results**
• Underlying revenue growth of 10%, including 3% organic growth
• Underlying operating margin of 12.7% (H1 20142: 12.6%)
• Underlying profit before tax up 11% to £265m (H1 20142: £238m)
• Underlying operating cash1 conversion rate of 104% (H1 20142: 112%)
• Underlying free cash flow1 up 6% to £180m (H1 20142: £170m)
• Post tax ROCE1 14.5% (FY 2014: 14.8%).
**Andy Parker, Chief Executive of Capita plc, commented:**”Capita has had a productive first half year, announcing significant contract wins in the health and science sectors and our largest ever acquisition, avocis in Northern Europe, all of which will contribute substantially to growth going forward. We continue to expect to deliver low double digit revenue growth in 2015, with a slight increase in organic growth in the second half of the year, following the delayed start of some new contracts. We expect organic growth to accelerate in 2016, supported by the conversion of our bid pipeline.”
As of 07:38 BST, Wednesday, 29 July, Capita PLC share price is 1,286.00p.

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