IT and business process outsourcing firm The Capita Group Plc continued to experience strong growth in the first half of 2004.
During the six months ended June 30, London, UK-based Capita reported a net profit of 18.8m pounds ($34.4m) up 39% on 2003, on revenue that grew 17% to 620.2m pounds ($1.13bn). At the end of the period the company had boosted its cash position to 4.8m pounds ($8.78m) from zero in the same period in 2003.
Capita says that it is now working on live bids worth 2.5bn pounds ($4.58bn).
At the same time, Capita announced that it had won four deals worth a total of 293m pounds ($536.2m), of which 260m pounds ($468m) are new deals and 33m pounds ($60.4m) are extensions to existing deals. The largest of these is a 250m pounds ($457.5m) twelve-year contract with Salford City Council to provide administrative support services across property, engineering and highways services. As part of the deal, Capita will form a new joint venture with Morrison (part of AWG Plc), and will provide property, engineering and highways design and professional maintenance services through its property consultancy business, Capita Symonds. Morrison will support both partners, providing blue collar, highway construction services.
Capita also won a new two-year 10m pounds ($18.3m) deal with House Hammond, Norwich Union’s national broker, which involves IT, policy administration, claims management and customer enquiries, which it will deliver from an administration center in Bristol. The deal means 300 staff will transfer to Capita. The two contract extensions include a six year 22m pounds ($40.3m) deal with the Driving Standards Agency (DSA), and a four and a half year 11m pounds ($20.1m) deal with Derby City Council has been extended in a new contract worth £11m over the next four and a half years.
Capita said that it continues to look to pursue small acquisitions, and during the half the company made four such deals. The largest of these was the 29.9m pounds ($54.7m) takeover of property consultancy and project management firm Symonds Group, from which it created Capita Symonds, a property division that now has 160m pounds ($292.8m) in annual revenue.