Capita reports solid sales and profits growth for the year
The outsourcer also sees momentum for 2016
Capita’s underlying revenues were up 7 percent to £4.67 billion for the year, with operating profits up 11 percent to £639 million (increasing margins to 13.7 percent against 13.2 percent last time).
On a like-for-like basis – excluding businesses exited and held for sale – sales were actually up 11.8 percent.
Andy Parker, chief executive of Capita, said: “We delivered good financial results in 2015, including 4 percent organic revenue growth, an improvement in our operating margin and a high level of cash generation.
“Our largest ever acquisition, avocis, has provided a strong growth platform in Europe. We have re-positioned the business away from certain non-core lower growth businesses and enter the current year in a strong strategic and financial position.”
As a result, the company has raised its margin target range to between 13 percent and 14 percent. In 2016, it is targeting organic revenue growth of “at least 4 percent”.
The outsourcer spent £402 million over the past year acquiring 17 businesses. Earlier this week, the company announced a new financial services framework with Wandsworth and Richmond councils in London, which is open to other London councils.
@AntonySavvas