Capita upbeat about new business

Pindar: Long-term contracts mean Capita is well positioned for 2010

Outsourcing firm Capita has posted positive full-year results, driven by several contract wins and lower finance costs.

Sales for the year ending 31 December 2009 were up 10 per cent, reaching £2.7bn, with profit before tax of £325.1m, an increase of 17 per cent.

Despite the recession, the public sector outsourcer won a number of contracts and renewals which brought in about £1bn during 2009, compared with £1.24bn in 2008.

According to Capita, less than 10 per cent of its revenue is generated by businesses that could be vulnerable to a weaker economy – such as its consultancy, resourcing and share registration businesses – adding that the majority of these areas met expectations nevertheless.

Chief executive Paul Pindar said that despite reduced client spending during 2009, cost cutting and expansion of the company’s offshore operation meant it continued to increase margins.

“Our pipeline of sales prospects, strong forward visibility of revenues from our long-term contracts and consistent operational performance position us well for further progress in 2010 and thereafter," he added.

Yesterday, Logica's chief executive Andy Green was quoted as saying that the upcoming elections could mean a slowdown in public sector work.