Capita Group PLC
14 December 2006
The Capita Group Plc - Trading Update
The Capita Group Plc ('Capita') is issuing a trading update ahead of its
preliminary results announcement for the period ending 31 December 2006, due to
be released on 22 February 2007.
The strong first half revenue growth has continued in the second half, with our
businesses performing well. Since our interim results in July 2006, we have been
selected to deliver significant outsourced services on behalf of:
•Prudential UK - to deliver a range of life and pension sales and
administration services. The contract is projected to generate revenues of
approximately £40m over a 3 year term, after which Prudential have an option
to renew on a rolling basis.
•Transport for London - to deliver the Congestion Charging scheme from the
end of the initial contract in February 2008 until November 2009, a contract
extension worth £90m over 21.5 months. In addition, we will administer the
Low Emissions Zone Supplemental Agreement (LSA), valued at £14m over 3
years.
•Swindon Borough Council - selected as preferred bidder to develop a
ten-year incremental strategic partnership worth approximately £140m over 10
years. Final negotiations are currently in progress with the contract
expected to commence in early 2007.
•Co-operative Insurance - to deliver business processing activities.
Subject to final scope of services, the contract is expected to be worth in
excess of £250m over a 10 year period, with commencement later in 2007.
Capita today announces that its health solutions business has signed an
agreement with BT to extend its contract to provide outsourced occupational
health services, worth in the region of £13.5m over nine years until 2015. We
have also been selected to deliver property consultancy services for
Cambridgeshire County Council worth approximately £15m over the next 7 to 10
years, subject to contract.
To date in 2006, Capita has therefore won or extended major contracts worth
£1.37bn (FY 2005: £1.14bn), strengthening our position as the UK's market leader
in business process outsourcing services to the public and private sectors.
Across the Group, we have been successful in securing contracts with both new
and existing customers as well as increasing the scope of existing contracts. In
addition, we are continuing to achieve operating efficiencies through economies
of scale and by accelerating the offshoring of business processes to our
facility in India.
Our markets remain buoyant in both the public and private sectors, driven by our
customers' desire to improve service quality and reduce costs. This, together
with the excellent revenue visibility we enjoy, gives us confidence that we will
deliver a strong performance in 2006 and 2007.
A conference call for investors and analysts will take place today at 8.30am. To
obtain dial-in details please call Elaine Ryman at Financial Dynamics on +44
(0)207 269 7121.
For further information:
The Capita Group Plc Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Capita Press Office Tel: 0870 2400 488
Financial Dynamics Tel: 020 7269 7121
Andrew Lorenz / Susanne Walker
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.