Capita signals outsourcing rebound as sales pick up

Capita flagged up a change in the outsourcing sector's fortunes yesterday, reporting a "busy sales period" only months after spooking investors with a warning on the impact of the Government's public-spending cuts.

The company – which runs TV licensing for the BBC and provides a criminal records service to the Home Office – said it had performed "solidly" over the first four months of the year as it drew steam from an uptick in the "appetite for outsourcing, particularly across the life and pensions and local government markets".

The decidedly upbeat announcement marked a step-change from the company's warning last November that pressures on public spending were hitting growth. But that was then. Yesterday, it said that "in the public sector, the number of new tenders across our areas of expertise is now at the levels enjoyed prior to May 2010 elections and the public sector spending freeze".

"The most active public sector markets are local government and the defence market," it added, noting that opportunities were also "beginning to emerge" in the central government market.

The business has signed seven new contracts since the beginning of the year, including a mandate to provide IT outsourcing for English Heritage and to administer revenues for the London Borough of Brent. Capita is also on shortlist for several contracts, including one to administer army recruitment for the Ministry of Defence.

The company was careful not to overstate the pick-up, however, saying only that it was "well placed to achieve steady revenue growth" this year. As highlighted in the past, it added that turnover growth would be modest in the first half of this year "due to quiet sales activity in 2010 and the continued impact of public-spending cuts on a small number of our trading activities", with better progress expected over the final six months of the year.

Analysts welcome the update, with Numis repeating its positive stance and saying it augured well for a "return to good organic growth in 2012".

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Business Development Executive / Sales - OTE £40,000

£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...

Guru Careers: Research Associate / Asset Management Research Analyst

£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...

Ashdown Group: Finance Accountant - Financial Services - Central London

£30000 - £35000 per annum + benefits : Ashdown Group: Finance Accountant - Fin...

Ashdown Group: Chief Technology Officer (CTO) - Glasgow

£90000 - £98000 per annum + benefits : Ashdown Group: A truly exciting opportu...

Day In a Page

Solved after 200 years: the mysterious deaths of 3,000 soldiers from Napoleon's army

Solved after 200 years

The mysterious deaths of 3,000 soldiers from Napoleon's army
Every regional power has betrayed the Kurds so Turkish bombing is no surprise

Robert Fisk on the Turkey conflict

Every regional power has betrayed the Kurds so Turkish bombing is no surprise
Investigation into wreck of unidentified submarine found off the coast of Sweden

Sunken sub

Investigation underway into wreck of an unidentified submarine found off the coast of Sweden
Instagram and Facebook have 'totally changed' the way people buy clothes

Age of the selfie

Instagram and Facebook have 'totally changed' the way people buy clothes
Not so square: How BBC's Bloomsbury saga is sexing up the period drama

Not so square

How Virginia Woolf saga is sexing up the BBC period drama
Rio Olympics 2016: The seven teenagers still carrying a torch for our Games hopes

Still carrying the torch

The seven teenagers given our Olympic hopes
The West likes to think that 'civilisation' will defeat Isis, but history suggests otherwise

The West likes to think that 'civilisation' will defeat Isis...

...but history suggests otherwise
The bald truth: How one author's thinning hair made him a Wayne Rooney sympathiser

The bald truth

How thinning hair made me a Wayne Rooney sympathiser
Froome wins second Tour de France after triumphant ride into Paris with Team Sky

Tour de France 2015

Froome rides into Paris to win historic second Tour
Fifteen years ago, Concorde crashed, and a dream died. Today, the desire to travel faster than the speed of sound is growing once again

A new beginning for supersonic flight?

Concorde's successors are in the works 15 years on from the Paris crash
I would never quit Labour, says Liz Kendall

I would never quit party, says Liz Kendall

Latest on the Labour leadership contest
Froome seals second Tour de France victory

Never mind Pinot, it’s bubbly for Froome

Second Tour de France victory all but sealed
Oh really? How the 'lowest form of wit' makes people brighter and more creative

The uses of sarcasm

'Lowest form of wit' actually makes people brighter and more creative
A magazine editor with no vanity, and lots of flair

No vanity, but lots of flair

A tribute to the magazine editor Ingrid Sischy
Foraging: How the British rediscovered their taste for chasing after wild food

In praise of foraging

How the British rediscovered their taste for wild food