AGM Statement

Capita Group PLC
28 April 2005


28 April 2005



THE CAPITA GROUP PLC


Annual General Meeting Statement


The Capita Group Plc ('Capita'), the leading UK business process outsourcing  
('BPO') and professional support services company, held its Annual General Meeting
in London today. At the meeting, Rod Aldridge, Executive Chairman of Capita,
commented:

Results for 2004

'Capita's results for the year ended 31 December 2004 reflected the excellent
performance made across the Group in the year. We have strengthened our position
as the UK's leading BPO provider and returned record results for the 16th
consecutive year. Turnover increased by 19% to £1,285m and net profits before
exceptional items, goodwill amortisation and taxation increased by 22% to
£148.2m. Earnings per share before exceptional items and goodwill amortisation
grew by 23% to 16.05p. Operating margins increased during the period from 12.2%
to 12.5%.

The efficiency of our business model is evident in the strength of our
underlying operating cash flow which rose by 27% to £200m, representing an
operating profit to cash conversion rate of 125%. Free cash flow increased from
£83m in 2003 to £106m in 2004. Similarly the post tax return on average capital
employed (including debt) improved again from 14.6% to 16.2% exceeding our cost
of capital which is 8.5%. Over the past 10 years to 31 December 2004, the value
of the Group has increased from £89m to £2.4bn. Total shareholder return in this
period has been 22 fold, equivalent to a 36% compound annual return.

2005 Update

Across the Group, we are experiencing strong trading conditions and our track
record of service delivery continues to be excellent. 2005 has started well with
a steady number of key contract wins and contract extensions.

In January, we announced that we had signed a 3 year contract worth £14m with
eircom. In February we signed a new contract with Chester Street Insurance
Holdings Limited to administer their liability claims run-off worth £40m over 10
years. We have also extended 3 of our major existing relationships, reflecting
our high levels of operational performance and customer service. Our contract to
run a range of key office services for DWP has been extended until December
2006, with total revenues of £44m over 21 months. Our contract to manage Norwich
Union's Clubline has been extended for 3 years and is anticipated to generate
revenues of £12m. Capita has also recently been reselected by Mendip District
Council as its strategic partner to deliver a wide range of business services,
as part of its reform and modernisation programme. Our original contract
commenced in 1993 and this new contract will be worth £30m over a further 12
years.

Consequently in the first 4 months to 28 April 2005, the Group has been awarded
major contracts worth £140m. Our bid pipeline remains at a record level with a
number of new bids entering the bid process.

Prospects

The Board is pleased by current trading. The UK BPO market is buoyant across
both public and private sectors with strong drivers for continued growth. Our
ability to steadily enhance margins continues to be driven by the delivery of
increasingly sophisticated services to customers, further efficiencies in
service delivery and greater internal economies of scale.

I am confident that shareholders will be pleased by the Group's performance for
the year as a whole. The prospects for future growth remain excellent.'


                                -         Ends -



For further information:

The Capita Group Plc 020 7799 1525

Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Group Marketing Director

Capita Press Office 0870 2400 488

Financial Dynamics
Richard Mountain/David Yates 020 7269 7291


                      This information is provided by RNS
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