Interim Results

Capita Group PLC 25 July 2002 25th July 2002 THE CAPITA GROUP PLC Interim results for the six months ended 30th June 2002 RECORD RESULTS AND NEW CONTRACT WINS Financial highlights: Six months ended Six months ended Change 30th June 2002 30th June 2001 Turnover £391m £323m + 21% Operating Profit* £44.3m £31.3m + 42% Profit before tax* £40.2m £29.1m + 38% Earnings per share* 4.3p 3.15p** + 37% Interim dividend per share 1p 0.75p + 33% * before amortising goodwill ** after restatement for FRS 19 (deferred tax) Operating highlights: • Strong rise in operating margins to 11.3% (2001: 9.7%), reflecting increasing quality of contracts and economies of scale; • Record level of new contract wins - £1.1bn of new contracts in the first seven months of 2002, exceeding the full year total of £744m for 2001; • £160m ten year contract announced today with Lincoln Financial Group to provide Life and Pensions administration services in the UK. This contract also provides a base for Capita to grow a new business area in Life and Pensions; • In February 2002 Capita signed its largest ever contract to date, a partnership with the BBC to administer TV Licensing, worth £500m over ten years; • High visibility of forward revenues due to recent contract wins and lengthening contract terms (average now 7-10 years) - 98% visibility on 2002 turnover of £895m, continued high visibility on 2003 turnover; • Pipeline of bid opportunities worth in excess of £1bn and addressable market size increased from £50bn p.a. to an estimated £65bn p.a. Capita uniquely positioned to capitalise on growth opportunities across the Private Sector, Central and Local Government; • Financial strength through strong operating profit to cash conversion and a prudently funded balance sheet; • Accounting consistently more conservative than required by the relevant accounting standards, a simple corporate structure, no special purpose financing vehicles, no associated companies and no long term PFI contracts. Rod Aldridge, Executive Chairman of The Capita Group Plc, commented: 'I am delighted to be able to announce such strong results today. Once again, the Group's earnings are growing strongly whilst continuing to be highly predictable and robust. The long-term nature of our contracts and the increasing demand for the provision of essential services across the nine markets which we now operate in create a framework for Capita to deliver continued growth. The size of our addressable market for outsourcing services continues to grow and now represents an estimated £65bn per annum. Capita is the largest player in this market and yet our current revenues represent only 1.4% of the total market potential. The breadth of our offering and our established reputation with customers means that we are uniquely positioned to capitalise on the opportunities within these markets. We are therefore very confident of the Group's prospects for the year as a whole and for our continued future growth.' For further information: The Capita Group Plc Tel: 020 7799 1525 Rod Aldridge OBE, Executive Chairman Press Office: 020 7544 3141 Paul Pindar, Chief Executive Shona Nichols, Group Marketing Director Finsbury Tel: 020 7251 3801 Morgan Bone Mark Harris Chairman's Statement Results The Group has enjoyed strong growth in the six months to 30 June 2002. Once again, we have achieved record results. Group turnover increased by 21% to £391m (half year to 30 June 2001: £323m), operating profits before goodwill amortisation rose by 42% to £44.3m (2001: £31.3m) and net profits before taxation and goodwill amortisation increased by 38% to £40.2m (2001: £29.1m). Earnings per share before amortising goodwill grew by 37% to 4.3p (2001: 3.15p re-stated due to FRS19). During the period, our operating margins have increased from 9.7% to 11.3%. This reflects the increasing quality of work won by the Group, the economies of scale we now have and our decision to be highly selective about what opportunities we pursue and operate. Other financial measures also demonstrate the underlying strength of Capita's business. We continue to enjoy excellent cashflow with £41m generated by our operations in the period. Our pre-tax return on average capital employed (including debt) will also show a significant increase for the year as a whole. Capital expenditure for the period has been high due to two projects, the Criminal Records Bureau and Transport for London's (TfL) congestion charging scheme. Both of these projects will enjoy attractive financial returns and the latter has the potential to create a very substantial pipeline of new business. For the year as a whole, capital expenditure is estimated to be approximately 7% of annual revenue compared to our historic levels over the past five years of 4% to 5%. The nature of the opportunities we are currently bidding for indicates that capital expenditure in 2003 will be significantly lower, representing less than 4% of revenue. Dividend The Board has declared an interim dividend of 1p net per ordinary share (2001: 0.75p), a 33% increase. The dividend will be payable on 11 October 2002 to shareholders on the register at the close of business on 13 September 2002. The dividend is covered 4.3 times by earnings per share before amortising goodwill. Accounting policies The Board has noted recent comment regarding accounting policies adopted by companies in the support services sector, particularly with regard to accounting for contract costs. The relevant accounting standards in this area are SSAP9, FRS15 and UITF34. Capita has consistently exceeded the requirements of these accounting standards. The Board believes that Capita's policies are robust, appropriate and consistently more conservative than those required by the relevant accounting standards. The Board has always adopted this approach and is fully committed to continuing to follow this prudent policy in the future. We have a simple corporate structure, with no special purpose funding vehicles, no associated companies and we are not involved in long term PFI projects. Creating growth We have three complementary approaches to securing growth. First, we seek to secure major contracts to deliver complex projects that use our skills across the Group and which generate high quality recurring revenues. Second, each of our individual businesses is structured to generate incremental growth through the development of existing accounts and new business wins. Third, we continue to make strategic acquisitions to strengthen the Group's presence within a specific market and to broaden its service capability. We have made strong progress with respect to each of these three approaches. Major contracts In our full year results announcement in February 2002, we reported on £744m of major contract wins secured during 2001. In the first seven months of 2002, we have already surpassed the total for the previous year, having achieved £1.1bn of major contract wins against an internal target of £500m. We continue to win one out of every two contracts bid for, compared with the industry average of one in five. This performance will underpin strong growth for the full year and we also have high visibility of our revenues for 2003. Our pipeline of new bid opportunities spanning both the public and private sectors is worth in excess of £1bn and we expect to make further announcements in the second six months. We will continue to be highly selective, bidding only for projects where we can add significant value for both customers and shareholders. Of the long-term contracts won this year, four are of major significance to the Group's positioning going forward. In February, we signed the Group's largest ever contract, a ten year partnership with the BBC to administer TV Licensing. This contract, worth £500m over a ten year term, went live on 1 July 2002 and will hold us in good stead to bid for other opportunities involving large scale revenue collection. In March, Capita signed a contract with Transport for London (TfL) to administer the proposed congestion charging scheme in London. This contract is estimated to be worth £280m over the first five years of operation. We are now implementing this project, which we believe represents the beginning of a major new business area for the Group. I am delighted to announce today that, subject to contract and pending FSA approval, we have entered into a significant partnership with Lincoln Financial Group ('Lincoln'), a major company in the Life and Pensions market in the UK. Under the terms of the agreement, Capita will acquire the processing and administration services and the associated assets of Lincoln for a consideration of £5m payable in cash between 2004 and 2006 plus further performance related sums payable up to 2007. At the same time, Capita and Lincoln will enter into a ten year contract worth £160m for Capita to provide third party administration services to Lincoln. The contract commences in August 2002. As a result of the agreement, Capita will have a state of the art processing centre in Gloucester, which will become the base for establishing a new business area for Capita to undertake legacy and non-legacy life and pensions administration outsourcing work. In 1999, through our investment in Eastgate, Capita initiated its presence in general insurance outsourcing, a £4bn market. Three years later, we are the clearly established market leader in back office processing for the general insurance industry. The Life and Pensions market, which is worth c.£5bn per annum, offers similar potential. We believe this partnership will be the stepping-stone to replicating our success in the general insurance market place. I am also delighted to announce today that, subject to contract, Capita has formed a unique partnership with four local authorities in South Wales to support transport infrastructure initiatives and deliver professional support services across the region. Capita has formed a new company with four local authorities, Monmouthshire, Torfaen, Blaenau Gwent and Caerphilly. The four authorities are contracting with the new company for ten years to provide services worth an estimated £83m. Capita will own 51% of the new venture and is investing £1m in consideration for acquiring its shareholding. The new venture will be jointly owned by Capita and the four authorities and assumes the business and assets of the Gwent Consultancy, a transport infrastructure consultancy business, presently owned by five unitary authorities (the four new joint owners and Newport). Our strategy will be to build upon Gwent Consultancy's success to create a substantial infrastructure consultancy and professional support services centre from a new base in South Wales. The team has considerable experience of transport management, an area of business that offers considerable potential for the Group. Incremental new business Our second important means of growth is generated by our individual business units securing work from existing and new clients. Capita now has many thousands of clients and our exceptional levels of customer satisfaction result not only in high client retention and renewal rates, but also in our ability to extend the breadth of services. In our insurance business, Capita has renewed its contract with Norwich Union for the management of motor third party liability desk top handling and we have extended the scope of our contract with Abbey National Plc, increasing the contract value by £10m. Zurich Financial Services has not only extended its loss adjusting contract for a further two years with us, but has also recently signed a three year contract to receive our new contractor repair network service for property claims. We have also extended for a further year our contract with the Department for Work and Pensions for the administration of Winter Fuels and the contract we have with Westminster City Council for debt management services for Council Tax and Business Rates for four years, with an option of a further year. These extensions generate revenues of £10m in total for the Group. Academy, our software business, has completed a very successful first half year, highlighted by attaining preferred bidder status on contracts worth £2m in the last month alone. In revenues and benefits, we have won five out of the last six opportunities we have bid for. Equita, our debt management company, has secured eight new contracts for the collection of Road Traffic debt on behalf of local authorities. We have been successful in securing contracts with every local authority in the North and North West that has adopted Decriminalised Parking Enforcement. The company has also had numerous contract extensions with existing Council Tax and Non Domestic Rate clients, including Birmingham City Council where there has been a 14% increase in monies collected in 2001/2002. Our consultancy business has continued to thrive, securing contract extensions with Bolton MBC, Centrex (formerly National Police Training), and the Office of the Deputy Prime Minister and a new contract with the Department for Work and Pensions to support the pension credit implementation programme. Capita Strategic Education Services (Capita SES) has won praise for its role as a partner of Leeds City Council providing strategic education and management support for Education Leeds. A report issued on 11 July by Ofsted, the schools inspectorate, has indicated that significant progress has already been made in improving services. Capita SES has also won new contracts with the Department for Education and Skills, Gloucestershire LEA and local Learning and Skills Councils. Capita IRG continues to expand its client base and service offering. We now administer shareholder communications to six million shareholders on behalf of 1,700 corporate clients and have secured contracts to administer Share Incentive Plans (SIPs) for Logica, BACS, Kelloggs, BMW and Royal Bank of Canada. We now administer SIPs for 75 corporate clients, positioning us as market leaders with 25% of the market. Cross selling revenues have also increased by 50% on last year and the number of additional services our share registration clients take from us has grown by 40% since the start of the year. Our property consultancy, one of the top ten consultancies in the UK, has made strong progress. It is providing full multi-disciplinary services to a range of organisations, especially in the area of office building, with the fit-out of new HQ buildings for The Royal Bank of Scotland in six UK locations and a major project for Lloyds TSB. We are benefiting from increased investment by the Government and other agencies in transportation and are now well positioned to carry out work in the airport, highways, rail and underground markets. Acquisitions During the period, we have continued our policy of making small acquisitions to develop our position in specific markets. In the first six months, four acquisitions were completed for an aggregate initial consideration of £43m. All have been integrated into the appropriate business division. The two largest transactions were the purchase of four human resources businesses from PricewaterhouseCoopers ('PwC') for an initial consideration of £14m and the acquisition of Wynchgate Holdings, an absence management services business, for an initial consideration of £18.6m. The businesses acquired from PwC, which generate proforma revenues of £15m per annum, strengthen Capita's skills in payroll administration, employee benefits administration, interim management and executive search and selection (trading as Veredus). The businesses have many prestigious clients, including the Department of Health, DfES, the Office for Public Sector Reform and Morgan Stanley. The majority of Local Authorities in the UK have also been clients within the last three years. Capita has now built an unparalleled position in the HR outsourcing market. Whilst there are many niche, specialist providers, there are few significant players able to provide integrated solutions. One third of all FTSE 250 companies expect to outsource in excess of 20% of their HR work and the market potential in the UK is now valued at £10bn (source: NelsonHall). Capita's skills, which encompass payroll, employee benefits, personnel administration, HR information technology, workforce recruitment and management, workforce development and organisational development are ideally placed to address this market. This position was strengthened further in June through the acquisition of three businesses from the Wynchgate Group, with proforma revenues of £17m per annum. These businesses specialise in providing absence and related cost management services for the education sector and, increasingly, the health sector. The principal business is the UK's leading provider of staff absence services to the education sector, typically through three year contracts. The client base includes 42 Local Education Authorities (LEAs) and over 2,000 schools and a growing number of 'not for profit' organisations. The business uses an innovative IT solution to assist with monitoring staff in order to increase attendance and to reduce the overall cost of absenteeism. Joining forces with Capita will provide the business with immediate access to the software relationships that we have with approaching 23,000 schools and 155 LEAs. We would like to welcome all the employees of our newly acquired businesses into Capita along with those that have joined us through contract wins and direct recruitment. More than 1,750 have joined the Group in the period. Operational performance Through the services that the Group administers, we now interact with 33 million individuals in the UK. Our record of service delivery continues to be excellent. We are able to present our potential clients with numerous case studies setting out Capita's track record in improving services. Many of our current initiatives are at the leading edge of modernising the way organisations deliver services. Several have a higher profile than we have previously experienced, which means we will be more in the public eye during the implementation phase. However, when established, the long term success of these complex projects will reinforce Capita's unique position in the market and will raise further the barriers to entry for new competitors. At the Criminal Records Bureau (CRB), which was formally opened by the Home Secretary, the live service for standard and enhanced disclosures was launched on 11 March 2002. We have so far issued over 100,000 disclosures, providing greater protection to children and vulnerable adults. The implementation of such a complex, crucial system has been challenging. The CRB has always anticipated that there will be an initial period where published service standards would be under pressure due to the combination of new staff operating new systems and customers adapting to new procedures. It is pleasing to report that the output of the agency is accelerating strongly and we anticipate that published service standards will be met by the end of the Summer. The experience gained with this project and the relationship developed with the Home Office will stand Capita in good stead as future opportunities are identified. Our contract to administer the TV Licensing service on behalf of the BBC went live on 1 July 2002. Approximately 1,400 staff from Consignia joined Capita on this date. A new contact centre was formally opened in Darwen on 12 July 2002, building on the strategic relationship that Capita has with Blackburn with Darwen Borough Council, and providing the BBC with a state of the art centre. Capita's task is to issue and collect payment for over 23.5 million TV licences per annum, with a particular focus on increasing 'take up' and reducing evasion. We are delighted by the manner in which this project has been managed, both during the implementation period and since the 'go live' date. We have developed a strong partnership with the BBC, which augurs well for the future. We continue to work with the Department for Education and Skills on the run down of the Individual Learning Accounts scheme and on the business model for a successor scheme. Our contract with Abbey National Plc to manage its general insurance back office processes is progressing well. Following the successful release of Phase 1 of the Consumer Direct System (which enables Abbey National customers to purchase household insurance over the internet), Phase 2 will be launched within the next month. This will extend the internet service to include motor insurance and allow direct access to the Consumer Direct system for Abbey National's Telesales units. Our contract with Transport for London (TfL) to implement London's Congestion Charging scheme is also progressing well. We will be responsible for delivering and managing the customer service infrastructure, including multi-contact customer service centres that process payment by telephone and web. In addition, the payment infrastructure will also be extended to selected shops, petrol stations, kiosks and a small number of meters. We believe that the potential for developing our business in the congestion charging market place in the UK is highly encouraging. The Transport Secretary has already indicated that he will look favourably upon similar schemes elsewhere. There are many potential opportunities to develop Capita's role including an extension to the existing inner London area and numerous other UK cities with acute traffic congestion problems. The fact that Capita has built a scaleable, modular solution to the congestion charging problem will give us a very significant 'first mover' advantage. We will have both a unique flexible system and unparalleled experience in implementing it. We are excited by transport as a potential market for further significant growth for Capita and believe that the transport management market in the UK could be worth £7bn per annum. Markets We have previously stated that the market for our services in the UK across Local Government, Education, Central Government and Financial Services is worth around £50bn per annum. With the activity that we are now seeing and the business drivers that are now in place, we believe that the value of the market has increased substantially. Reference has been made earlier in the Statement to new areas of business in Transport Management, Life and Pensions and in Human Resources. In addition to these, there are emerging opportunities for the Group in the Health Services where, for example, the Department of Health is currently preparing a Register of those interested in raising performance in the NHS. The recent announcement of the Comprehensive Spending Review by the Chancellor of the Exchequer underpins the Government's wish to modernise public services and to involve the private sector in these reforms. Indeed, significant additional monies have been allocated to Education, a market where the Group has a strong position. We therefore now believe that our addressable market in the UK is £65bn per annum, an increase of 30%. Only a small part of these services have been outsourced to date. We believe that the market will continue to develop in an orderly and structured way over the next decade. The major competition continues to be the in-house option, but the drivers for change are high in both the public and private sectors. This underpins our intention to remain in the UK to develop our business for the foreseeable future. Divisional structure As Capita develops and grows the services it provides, we intend to continue to strengthen and deepen our management structure to ensure we maintain control over the quality of our services and our financial performance. Accordingly, with effect from 1 July 2002, we have added a new division, called 'Integrated Services'. This division will assume responsibility for a number of Capita's complex, integrated projects including the Criminal Records Bureau, the BBC TV Licensing contract and TfL's congestion charging scheme, in addition to some of our existing activities. At the same time, we have added to the Executive Board, thereby increasing the Board complement to nine Executives. We will ensure shareholders are provided with transparency of financial reporting with regard to the changes that have been made. We believe that the structure going forward will continue to encourage and nurture some of the exceptional talent we have across the Capita Group. Our people As ever, the Board would like to offer its sincere thanks to all our staff who contribute to the Group's progress. We have a unique culture and a strong team spirit throughout the Group, which have been significant factors in the success we have enjoyed during the period. Our clients also appreciate Capita's open and fair style of doing business. Over Capita's 13 years as a public company, its value has increased from £8m to £1.8bn. In a survey published by Sunday Business on 14 July, Capita was named as the top performing share out of Britain's 200 largest companies over the past decade. We believe that the Group is ideally positioned to continue its strong growth over the next decade and that we have an exceptional team in place to achieve this. In 2000, we introduced a staff Share Save Scheme, giving each of our employees the opportunity to become a shareholder in Capita. We are strong believers in promoting share ownership amongst our 16,500 staff. Accordingly, we intend to introduce a Share Incentive Plan (SIP) to operate alongside our Share Save Scheme and both will be open to all employees to participate. This scheme will allow employees to buy shares from their monthly salary in a tax efficient manner, subject to a holding period of five years. Under the scheme, there will be no dilution for existing shareholders as the shares required for the SIP will be purchased on the open market each month. In addition, we will be asking shareholders to approve a long-term incentive plan aimed at retaining and motivating the most senior executives in the Group. We believe these schemes will have a strong motivational effect for our employees. Prospects The Group has a business model which is consistent, proven and sustainable over the long-term. Our approach to growth and our long-term strategy remains unchanged. The market for our services continues to expand and provides an excellent basis for continued future growth. The Group is trading strongly, generating good profits and healthy cashflow. We will experience strong revenue growth in the second half because many of our recent contract wins only become operational during that period. We anticipate revenue of £895m for the full year. We are confident that shareholders will be very pleased by Capita's performance for the year as a whole. Rodney M Aldridge OBE Executive Chairman SUMMARY INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2002 Six months Six months to 30th June to 30th June 2002 2001 (As restated) Before Goodwill Total Before Goodwill Total Goodwill amortisation Goodwill amortisation Notes £'000's £'000's £'000's £'000's £'000's £'000's Turnover 1 Continuing operations 383,778 - 383,778 323,015 - 323,015 Acquisitions 7,444 - 7,444 - - - 391,222 - 391,222 323,015 - 323,015 Operating profit 1 Continuing operations 43,339 (10,870) 32,469 31,301 (8,073) 23,228 Acquisitions 952 (331) 621 - - - Group operating profit 44,291 (11,201) 33,090 31,301 (8,073) 23,228 Net interest payable (4,047) - (4,047) (2,244) - (2,244) Profit before taxation 40,244 (11,201) 29,043 29,057 (8,073) 20,984 Taxation 11,711 - 11,711 8,418 - 8,418 Profit after taxation 28,533 (11,201) 17,332 20,639 (8,073) 12,566 Minority interest 22 - 22 24 - 24 Profit for the period 28,511 (11,201) 17,310 20,615 (8,073) 12,542 Dividends 6,656 - 6,656 4,946 - 4,946 Retained profit for the period 21,855 (11,201) 10,654 15,669 (8,073) 7,596 Earnings per share * 3 4.30p (1.69)p 2.61p 3.15p (1.24)p 1.91p Diluted earnings per 3 share * 4.11p (1.61)p 2.50p 3.05p (1.20)p 1.85p Dividend per share * 4 1.00p 0.75p * The comparatives have been adjusted for the effect of FRS 19. SUMMARY BALANCE SHEET AS AT 30TH JUNE 2002 30th June 30th June (As restated) 2002 2001 £'000's £'000's Fixed assets Intangible assets 440,383 358,105 Tangible assets 83,516 53,677 523,899 411,782 Current assets Trade investments 5,838 7,791 Debtors 200,823 165,059 Cash at bank 16,225 - 222,886 172,850 Creditors: Amounts falling due within one year 280,558 308,594 Net current liabilities (57,672) (135,744) Total assets less current liabilities 466,227 276,038 Creditors: Amounts falling due after more than one year 148,652 3,882 Provision for charges and liabilities 18,190 3,217 299,385 268,939 Shareholders' funds Called up share capital - Ordinary 13,311 13,184 Shares to be issued - 4,310 Share premium and other reserves 285,470 250,845 Minority interests 604 600 299,385 268,939 The comparatives have been adjusted for the effect of FRS 19. SUMMARY GROUP CASH FLOW FOR THE SIX MONTHS ENDED 30TH JUNE 2002 Six months Six months to 30th June to 30th June 2002 2001 £'000's £'000's Cashflow from operating activities 41,023 36,220 Returns on investment and servicing of finance (4,095) (1,075) Taxation paid (3,804) (7,800) Capital expenditure and financial investment (30,414) (15,517) Acquisitions and disposals (36,518) (45,691) Equity dividends paid (9,922) (7,214) Net cash flow before financing (43,730) (41,077) Financing 69,402 (8,539) Increase / (Decrease) in cash in the period 25,672 (49,616) GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE SIX MONTHS ENDED 30TH JUNE 2002 Six months Six months to 30th June to 30th June 2002 2001 (As restated) £'000's £'000's Profit attributable to the members of the parent undertaking 17,310 12,794 Prior period adjustment (see note 5) - (252) Profit attributable to the members of the parent undertaking, as restated 17,310 12,542 Exchange adjustment - (5) Total recognised gains and losses 17,310 12,537 NOTES TO THE FINANCIAL STATEMENTS 1. Analysis of turnover by division: Six months Six months to 30th June to 30th June 2002 2001 (As restated) £'000's £'000's Continuing Activities Business Services 130,916 117,915 Commercial Services 110,820 81,563 Integrated Services 64,039 54,147 Professional Services 78,003 69,390 Acquisitions Business Services 7,444 - 391,222 323,015 Analysis of operating profit before goodwill amortisation: Continuing Activities Business Services 16,492 11,568 Commercial Services 10,084 6,723 Integrated Services 8,315 6,406 Professional Services 8,448 6,604 Acquisitions Business Services 952 - Operating profit before goodwill amortisation 44,291 31,301 The results of the Group are reported under four divisions, which differ from those in the accounts for the year ended 31st December 2001. The effect on the comparatives for the period to 30th June 2001 is first to reduce business services turnover by £30,060,000 and operating profit before goodwill by £23,000, secondly to increase commercial services turnover by £10,175,000 and reduce operating profit before goodwill by £2,157,000, thirdly to increase integrated services turnover by £54,147,000 and operating profit before goodwill by £6,406,000, and lastly to reduce professional services turnover by £34,262,000 and operating profit before goodwill by £4,226,000. 2. The interim financial statements have been prepared on the basis of the accounting policies set out in the Group's 2001 statutory accounts except for the Group's adoption of FRS 19. The statements were approved by a duly appointed and authorised committee of the Board of Directors on 24th July 2002. The full year accounts, on which the auditors gave an unqualified report, have been filed with the Registrar of Companies. The figures for the six months to 30th June 2001 and 2002 are unaudited. 3. Earnings per share have been calculated on an average number of shares in issue during the period of 662,847,000 (30th June 2001: 655,174,000). The diluted earnings per share have been calculated on the diluted profit for the period of £28,535,000 (30th June 2001 (restated): £20,639,000) and an average diluted number of shares of 693,514,000 (30th June 2001: 677,507,000). As at 25th July 2002, there were 665,677,000 shares in issue. 4. The interim dividend of 1.00p per share will be payable on 11th October 2002 to Ordinary shareholders on the register at the close of business on 13th September 2002. 5. During the period the Group has adopted Financial Reporting Standard 19 'Deferred Tax' (FRS19). Consequently the comparatives for the period to 30th June 2001 have been restated. The impact of these changes on the profit for the period ended 30th June 2001 is to increase the taxation charge by £282,000, and reduce goodwill amortisation by £30,000. The impact of these changes on the balance sheet as at 30th June 2001 is to reduce intangible assets by £1,361,000, increase debtors by £4,218,000 and to increase shareholders' funds by £2,857,000. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Capita (CPI)
UK 100

Latest directors dealings