Business process outsourcing provider The Capita Group Plc broke the $2bn revenue mark in 2003 following another strong year.
London, UK-based Capita reported preliminary results for the year to December 31 that showed profit before tax up 23% to 121.2m pounds ($230.3m) on revenue that grew 20% to 1.081bn pounds ($20.5bn). Earnings grew 25% during the year to 13.04 pence per share. The company said it is currently working on live projects that have a total value of 2.7bn pounds ($5.13m) across the public and private sectors.
Capita claims to have now become the largest provider of BPO services in the UK with a 24% market share. In this space the company is particularly strong in the areas of claims processing for the insurance sector, as well as administrative services to the government and public sectors. The company expects the market for BPO services in the UK to continue to grow at between 12% and 15% annually until at least 2007.
Capita said it plans to continue making acquisitions of small to medium-sized companies over the course of 2004, adding to the 2,000 people it took on during 2003 from the purchases of BWD Securities last January, and offshore software and services firm Mastek BPO in November. Today the company employs some 19,000 people.
Since the start of the year Capita has secured a large claims processing contract worth 125m pounds ($237.5m) with the Department of Trade and Industry, to cover personal injury claims for coal miners over the next two years. The company claims this will establish Capita Insurance Services as the largest employer of claims handlers in the UK.
Capita has also recently been short-listed as one of eight potential contractors to take on a $2bn 10-year IT outsourcing contract with the British Broadcasting Corporation. Capita currently administers the BBC TV Licensing service, which incorporates multi-channel contact centers, back-office administration, IT services, and revenue collection. Were the company to win the deal, it would be by far the largest single contract signed by Capita to date.
Capita’s shares were up 2.6% in early trading yesterday, and have risen some 25% since mid-January. CEO Rod Aldridge said: The group occupies a leading position in markets which are highly active, with high barriers to entry, and which support long term growth. We already have significant visibility of revenues and profits for 2004 and prospects for further growth remain excellent.
This article is based on material originally published by ComputerWire