Interim Management Statement

12 November 2014

                   Capita plc - Interim management statement                   

Capita plc ('Capita'), the UK's leading customer and business process
management (`BPM') company, is today issuing its interim management statement
covering trading and financial progress to date in 2014.

Update on performance

Following a strong period of sales wins in 2013 and this year and with good
performance across the majority of our businesses, we remain on track to
achieve at least 8% organic growth, net of attrition, for the full year 2014
(2013: 8%). Our sales performance to date, together with the acquisitions
completed over the year and our steady operating performance, gives us
confidence in meeting consensus market expectations for 2014.

Financial performance: Our key financial metrics remain healthy. In particular,
cashflow remains good with strong control across the Group underpinning our
confidence that the conversion rate of operating profit to operating cash will
meet our target of being at or around 100% for 2014. We continue to generate
strong margins and as stated previously, we believe that our underlying Group
operating margin can be maintained in the range of 12.5% to 13.5% for the
foreseeable future. We anticipate that the underlying Group operating margin
for the full year 2014 will be comfortably within this range and ahead of the
half year margin of 12.6%.

Major sales: Capita has secured £1.63bn (Nov 2013: £2.9bn which included our
largest ever contract with O2 of £1.2bn) of major new contract opportunities to
date this year with clients including The Co-operative Bank, Defence
Infrastructure Organisation, Transport for London, John Lewis, Scottish Wide
Area Network and BAE Systems.

Bid pipeline: Our bid pipeline currently stands at £4.1bn (July 2014: £5.7bn)
comprising 26 bids (87% new business and 13% renewals). The pipeline has seen
some significant movement since the half year. Some £2.8bn has come out of the
bid pipeline in this period following our appointment as preferred bidder by
The Co-operative Bank, not securing any of the Transforming Rehabilitation
contracts and our decision to withdraw from a central government contract. In
addition a financial services client, where we were sole bidder, halted their
bid process at a late stage. Reflecting the continued buoyancy of the market,
we have already swiftly begun to replenish the bid pipeline with £1.2bn worth
of new bids where we have been shortlisted, entering the bid pipeline since the
half year.

Our win rate this year therefore currently stands at 1 in 2, the rate we have
held or exceeded for the past 3 years. Sales activity across our 11 target
markets remains strong with a number of opportunities expected to reach
shortlist stage shortly, particularly in the private sector, which will
replenish our bid pipeline further in the next few months.

The pipeline is a snapshot of major bid opportunities worth £25m or above,
capped at £1bn and where we have been shortlisted by the client to the last 4
bidders or fewer. We announce the pipeline three times each year, in February,
July and November.

Acquisitions: During the year to date, we have also acquired 13 complementary
businesses for a total consideration of £285m, enhancing and expanding our
sales proposition to clients and supporting the delivery of future organic
growth.

Delivering profitable organic growth

We continue to generate profitable growth by winning business with new and
existing clients. To date in 2014, we have secured 13 new and extended major
contracts with an aggregate value of £1.63bn. News since the half year
includes:

  * The Co-operative Bank - Announced yesterday, selected as preferred bidder
    to transform The Co-operative Bank's mortgage servicing operation in the
    UK. Subject to final terms and approvals the deal would be worth up to £
    325m over 10 years and is anticipated to start in the first quarter of
    2015. Under the terms of the deal, one of the largest of its kind in a
    decade if agreed, comprising more than 250,000 mortgage customers and £23bn
    of lending, Capita would take over and transform The Co-operative Bank's
    mortgage servicing operations in Leek in Staffordshire and Plymouth. We
    would install new systems - designed to drive efficiency while simplifying
    business processes in a regulated environment - to improve the experience
    for The Co-operative Bank's customers and support business growth. This
    represents good progress in establishing a strong presence in the retail
    mortgage servicing and builds upon our recent acquisition of Crown Mortgage
    Services.
   
  * Transport for London (TfL) - secured a 5 year, £145m contract with TfL to
    operate and enforce the congestion charging, low emission zone and traffic
    enforcement notice processing schemes. Capita will take full responsibility
    for the schemes in November 2015, following a period of implementation
    which commenced earlier in 2014. Capita has taken over the existing London
    Road User Charging agreement for both Congestion Charging and the Low
    Emission Zone ahead of go-live of the new contracts in November 2015. This
    additional work is worth in excess of £30m to Capita.
   
Major contract implementations are progressing well and to timetable. Scottish
Wide Area Network (SWAN) has now delivered 1,000 sites onto the network,
constructed a new core network, built an operations centre and also achieved
PSN (Public Service Network) status. The DIO contract is in full operation,
with our leadership team fully embedded into the MOD following the successful
mobilisation period.

Contract rebids: We have one material contract up for rebid in 2015 (arising
from a recent acquisition) and then no further material rebids for the next 5
years (defined as having forecast annual revenue in excess of 1% of 2013
revenue).

Securing value enhancing acquisitions

Our acquisition strategy supports the expansion of our market reach and
capability enabling us to generate further future organic growth. We acquire
small to medium sized businesses which build capability in existing areas and
enhance our sales propositions and which also accelerate entry into new
sectors. To date in 2014, we have acquired 13 companies for a total cash
consideration of £285m.

This year we have entered a number of new markets and territories such as: the
domestic mortgage servicing market through the acquisition of Crown Mortgage
Services, new market segments such as food and agriculture through our recent
acquisition of SouthWestern in Ireland and our acquisition of tricontes in
Germany enables us to further support existing clients with European parents
and subsidiaries and grow our customer management presence in Germany. We have
also enhanced our IT and software capabilities.

Since the half year we have made 3 acquisitions including:

Expanding our customer management market reach - We have further expanded our
customer management capability and reach with the acquisition of SouthWestern,
the leading domestic provider of outsourced managed services in Ireland.
SouthWestern delivers customer relationship management, financial shared
services, data processing and inspectorate services to private and public
sector organisations, from offices in Ireland, the UK and Poland.

Extending our financial services capabilities into new segments - We have
expanded our services to corporates with the acquisition of Throgmorton, one of
the leading specialist accountancy and back office service providers to the
financial services industry. Its clients include more than 300 investment
funds, private equity firms and corporate finance boutiques both in the UK and
the US.

Expanding our capability in the legal market - We have expanded our software
offerings with the acquisition of Eclipse Hardware Ltd (known as Eclipse Legal
Systems) which provides case management software and services to over 20,000
legal professionals in law firms, Alternative Business Structures, claims
departments and commercial organisations.

Outlook

The UK market for customer and business process management remains highly
active and Capita is well positioned to secure major outsourcing and
transformational partnership opportunities across an increased number of
private and public sector markets. Our unrivalled and growing breadth of
capability provides us with a greater reach across these diversified markets
and increases our ability to be highly selective regarding the opportunities we
pursue. Our bid pipeline is being replenished swiftly and with strong sales
activity, particularly across the private sector and local government, there is
a good flow of further opportunities which will continue to fuel the bid
pipeline and organic growth in 2015 and the following years.

Our sales performance to date, together with the acquisitions completed over
the year and our steady operating performance, gives us confidence in meeting
consensus market expectations for 2014. As a consequence of our sales successes
and business performance in 2014 and our current bid and acquisition pipelines,
we have the ingredients in place to deliver further revenue and profit growth
in 2015 and beyond.

See separate Capita Board Update announcement.

                                    -ends-                                     

Analyst & investor conference call

Andy Parker, Chief Executive of Capita plc, will host an analyst call in London
at 8.00am UK time today. Please dial into the call in time to allow for
registration.

Dial-in number: [phone]
Participant PIN Code: 91663108#

Replay: A replay of the conference call will be available for 7 days by
dialling [phone] (access code is 651292#)

For further information:

Capita plc
Tel: [phone]
Andy Parker, Chief Executive
Shona Nichols, Executive Director,
Corporate Development & Communications

Media enquiries only:
Capita press office
Caroline Mooney
Tel: [phone] or 020 7654 2399 (out of hours)
Email: [e-mail]

About Capita

Capita plc is the UK's leading provider of customer and business process
management (BPM) and integrated professional support service solutions. With
64,000 people at more than 400 sites, including 73 business centres across the
UK, Europe, India and South Africa, the Group uses its expertise,
infrastructure and scale benefits to transform its clients' services, driving
down costs and adding value. Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE 100 with 2013 revenue of £3.9bn.
Further information on Capita plc can be found at: www.capita.co.uk