Capita Group PLC
27 November 2002
27th November 2002
The Capita Group Plc
The Capita Group Plc ('Capita'), one of the UK's leading professional support
services organisations, is today holding a business briefing in London for
institutional investors and analysts.
Capita will give a review of current trading which continues to show strong
performance. The Group has won major contracts worth £1.1bn during the year
(2001: £744m) and is currently working on bids worth in excess of £1bn.
In addition to the major contract wins, there has been a strong focus during the
year on creating incremental growth through account development of Capita's
existing clients. This has resulted in new, forward contracted revenues of some
£155m. This is analysed as follows:
* the development of our long-term local government contracts with Norfolk, Cumbria and Blackburn with Darwen has
generated further revenues of £105m over the life of the contracts, equating to annualised revenues of £13m.
* Capita Insurance Services has recently extended contracts to the value of £32m with clients including Zurich
Financial Services, Northern Rock and XL Wire Group.
* Capita IT Services has generated a further £18m through account development across its portfolio of public and
private sector clients.
Sales to new customers across our businesses also remain buoyant. We continue
to be highly selective regarding the business development opportunities and
extensions we pursue.
The Group also confirms that it remains comfortable with analysts' consensus
forecasts for 2002 and 2003. The strong cash flow from operations, the focus on
organic growth coupled with the reduction in capital expenditure that will occur
because of the nature of the bids that the Group is currently pursuing will mean
that the free cash flow for the year ending 31st December 2003 is anticipated to
be approximately £60m.
The nine markets in the UK in which the Group operates are all active giving the
Group considerable options about where it bids across both the public and
private sectors. Capita is not reliant on any one market and its infrastructure
of business centres is both flexible and scaleable.
The briefing will cover four other areas:
1. A report on the progress of the BBC TV Licence contract that
started on 1st July 2002. The contract, worth £500m to the Group over 10 years,
has started well with operating performance ahead of previous levels on all
2. An update on the Insurance, Life and Pensions market, where
the Group is positioned to take advantage of an increasing number of
opportunities. Further information will be given about the Lincoln Life
contract which started on 1st August 2002. This service is already meeting all
of its 31 contracted service levels and is trading ahead of expectations.
3. A presentation on the development of the local government
market and the strong business drivers to partner with the private sector.
4. An update on the progress of Capita's contract with TFL
regarding the congestion charging scheme. All required milestones have been met
during the implementation. This will include a demonstration of the
technologies used in the service and, more generally, the future opportunities
in the Transport Management sector.
For further information:
The Capita Group Plc: 020 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Communications Director
Press Office: 020 7544 3141
Finsbury: 020 7251 3801
The Capita Group Plc is the UK's 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 the public
and private sector. With more than 17,000 employees at over 200 UK sites, Capita
is quoted on the London Stock Exchange (CPI.L) and is a FTSE 100 company with
estimated revenues for 2002 of £895 million. For further information, visit
This information is provided by RNS
The company news service from the London Stock Exchange