Capita set for record major contract wins in 2011
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Saturday 19 November 2011
The outsourcing specialist Capita expects to shrug off the economic headwinds hitting its clients and cuts in the public sector to secure a record year for major contracts.
Yet the group, which runs the BBC licence fee and the Criminal Records Bureau, revealed underlying revenues would be 7 per cent lower for the year. The results statement spooked investors, sending the stock tumbling 4 per cent.
Capita announced yesterday it had secured 16 new and extended contracts in the 10 months to the end of October, worth a total of £1.6bn, as companies look to outsource operations to slash their costs.
A series of bid decisions are set to come up at the end of the year and if it sustains the historic success rate "we expect to deliver more than double the level of major wins secured in 2010 and indeed to have our best ever year in terms of major contract wins". This would beat the previous £1.8bn high point in 2007.
Major 2011 contract wins include the administration of the Teachers' Pension Scheme for seven more years, administration of vehicle tax and insurance evasion for the Driver and Vehicle Licensing Agency and a significant contract with the Pension Regulator.
Capita "is having a successful year in respect of new major contracts and renewals, reflecting the operational track record of the group and the demand for outsourcing across our tight markets," it said in its interim management statement.
The good news was tempered as Capita said prevailing pressure on spending "continues to affect adversely a small number of our trading activities and is also constraining discretionary additional revenue from existing clients". It has carried out a series of deals in the past two years, which will add 14 per cent to overall revenues, with the group expecting a "reasonable" 7 per cent growth in the full year.
Robert Morton, at Investec, said it had been a "reasonable year for contract wins," but added: "The expected pick-up in the second half is clearly not coming through at the levels hoped for earlier in the year."
David Cameron stung by jellyfish: PM hurt after ignoring advice of locals while on holiday
South Korea ferry: Vice principal rescued from sinking ship found hanged
Oscar Pistorius trial: The case against Oscar Pistorius – and why the prosecution claims his story doesn't add up
Peaches Geldof funeral: Private ceremony to be held at same place as her mother Paula Yates on Easter Monday
Shropshire criminals ‘using unmanned drones and infrared cameras to find illegal cannabis farms’ – and then steal from the growers
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 Are you turning into your dad? The top ten signs you've embraced dad-ism revealed as survey says 38 is age men turn into their father
- 2 Overheard in Waitrose: documenting the chatter in 'Britain's poshest supermarket'
- 3 Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Grace Dent on TV: Game of Thrones has jumped the shark
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...