Capita Group PLC
12 April 2002
12th April 2002
THE CAPITA GROUP PLC
Capita enhances its Financial Services and Share Plan administration capability
Acquisition of City Financial Group Limited
The Capita Group Plc, ('Capita') has acquired the entire share capital of City
Financial Group Limited for an initial payment of £3.6m. A further £1m may be
payable under certain circumstances. The consideration will be satisfied by
£2,050,000 in cash and £1,550,00 in ordinary shares in the Capita Group Plc.
The vendors, who will continue to work for Capita, may not sell these shares for
at least two years.
City Financial Group Limited's pre tax profit for the year to 31st Dec 2001 was
£314,000 on revenues of £5,314,000. The Group trades through two operating
companies, City Financial Administrators Limited and City Financial Managers
Limited. Both companies are authorised by the FSA.
The acquisition offers significant synergies with existing Capita businesses and
is expected to be earnings enhancing in 2002.
City Financial Administrators is the largest independent collective fund
administrator in the UK providing third party administration services to a range
of unit trust management groups. City Financial Managers offers investors
collective schemes covering Unit Trusts and Open Ended Investment Companies
(OEICs). These can be linked to Individual Savings Accounts (ISAs) or through
transfer of an existing Personal Equity Plan (PEP).
Rod Aldridge, Executive Chairman of the Capita Group Plc, commented,
'This acquisition complements our existing administration, trust and share plan
activities and enables us to create a more efficient integrated structure for
our regulated activities. Through Capita IRG we act as registrar for a large
number of Investment Trusts Groups who also manage unit trusts. We now have the
capability to also offer these clients third party administration services. Our
Investment Trust Saving Scheme and Employee Share Plan clients will benefit from
our enhanced collective and personal investment schemes'.
The companies will be renamed Capita Financial Group Limited, Capita Financial
Managers Limited and Capita Financial Administrators Limited.
Application has been made to the UK Listing Authority and the London Stock
Exchange for the 367,822 ordinary shares of 2 pence each to be issued as a
result of the acquisition to be admitted to the Official List. These shares
will rank pari passu with the existing issued ordinary shares of the Company.
It is expected that admission will take place and dealings will commence in
these shares on 17th April 2002.
- Ends -
For further information:
The Capita Group Plc 020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Capita Press Office 020 7544 3141
Issued by Finsbury 020 7251 3801
Notes to Editors
The Capita Group Plc is a leading provider of integrated professional support
service solutions. The Group's service capabilities encompass customer services,
insurance services, human resource services, software services, systems and
strategic support and property services delivered to both public sector and
private organisations. With over 13,000 people at over 160 UK sites, Capita is
quoted on the London Stock Exchange and is a FTSE 100 company with revenues in
2001 of £691m.
Recent contract wins include: a contract worth c.£500m over 10 years,
representing the largest ever contract for Capita to date, to deliver the TV
Licensing service on behalf of the BBC; a £230m 5 year contract with Transport
for London to administer the London Congestion Charging Scheme; the creation and
administration of the new Criminal Records Bureau certification service for the
Home Office and the administration and infrastructure transformation of Abbey
National's general insurance operations.
This information is provided by RNS
The company news service from the London Stock Exchange