Capita announces buoyant results

Capita's Pindar is optimistic about growth prospects for 2009

Capita Group has announced a 16 per cent profit increase and expects to benefit from increasing pressure to reduce technology spending in the public and private sectors.

Pre-tax profit at the IT services firm rose to £277.2m for the year ending 31 December 2008, compared with £238.4m reported in 2007.

The company secured and extended 17 major contracts during 2008 totalling £1.24bn – including a deal with Sheffield City Council worth more than £200m – and anticipates further growth this year as businesses look at outsourcing to lower costs and offer more service flexibility.

"Prospects for Capita are encouraging. The success in the first few weeks of 2009, a high level of sales activity and a strong demand for outsourcing in the current economic conditions underpin the outlook for continued growth in 2009 and thereafter," said Capita Group chief executive Paul Pindar.

“Current conditions present a healthy flow of opportunities for us. Our pipeline of sales prospects, strong forward visibility of revenues from our long-term contracts and consistent operational performance position us well for further strong progress,” he said.