Capita reports buoyant half-year results

Pindar: "Our successes position us well for a successful year"

Outsourcer Capita has reported “good progress” for the first half of 2009 and a substantial expansion in India driven by new contract wins.

Net profit at the company jumped to £98.7m, up from £84.2m in the same period last year. Sales also increased from £1.2bn last year to £1.3bn over the first half of 2008.

The firm claims the majority of its businesses have performed well, with new major contracts totalling £814m.

"Our successes in 2008 and progress in the first half of 2009 position us well for a successful year," said Capita’s chief executive, Paul Pindar.

The new deals include agreements with financial services firm Axa Sun Life, the Learning and Skills Council, the Office for National Statistics and the Department for Children, Schools and Families.

The AXA contract is worth £523m over 15 years and started in June, with 1,150 UK staff transferring to Capita.

In addition, 550 people will move from Axa in India to Capita – this follows the firm’s partial acquisition of the Axa business which provides services to Axa Sun Life from India.

Also in September, Capita will start operations from an additional site in Bangalore, which will support the Axa contract. According to the IT services firm, some 3,700 full-time employees will be working across its Indian operation by year end.

“This will add further scale to our offshore operations and provide us with a compelling offer for the benefit of our clients as they seek further cost savings and efficiencies,” the firm said in a statement.