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Capita Group PLC (CPI)

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Tuesday 20 December, 2005

Capita Group PLC

Trading Statement

Capita Group PLC
20 December 2005

20 December 2005



                        Pre Close Period Trading Update





The Capita Group Plc ('Capita') issues the following trading update prior to a
conference call today with stockbrokers' analysts and entering a close period in
respect of its preliminary results for the year to 31 December 2005. The
preliminary results will be announced on 23 February 2006.



Since the announcement of Capita's interim results in July 2005, trading has
been very encouraging. We have continued to strengthen our market leading
position in the growing Business Process Outsourcing and service transformation
market.



In the first half of 2005, we achieved good organic growth in turnover and
profit, augmented by a number of small acquisitions in some new market segments
which offer good growth potential.  This progress has been maintained in the
second half. We continue to leverage our scale by increasing the utilisation of
our existing infrastructure and the volume of transactions processed, as well as
maximising our purchasing power. These factors, together with a continued focus
on reengineering our own business processes, will ensure we make further
progress in widening our operating margins for the year as a whole.



So far this year, apart from securing a stream of new and repeat business across
our broad portfolio of businesses, we have announced £843 million of significant
new contracts and contract extensions.



Of particular note, in early December, we were recommended by Birmingham City
Council, the UK's largest Local Authority, as preferred partner for a long term
programme to improve service efficiency and quality. The Information and
Communications Technology (ICT) transformation element of this partnership alone
will amount to £424 million over 10 years. Further work is expected to be
commissioned through the partnership to support the business transformation
programme, which will increase the value of the relationship over the 10 year
period.



Additionally, on 15 September 2005, we announced that we had entered into
detailed discussions with Zurich concerning a potential business relationship to
deliver business processing activities to support the continuing growth of
Zurich's UK Life operations. These discussions are progressing well and we
expect to be able to make a further announcement about this relationship
shortly.



Current trading is strong and the results for 2005 will be pleasing. Moreover,
many of the ingredients are already in place for a successful 2006 and we look
forward to the New Year with considerable optimism.



                                     -Ends-


For further information please contact:

The Capita Group Plc +44 (0)20 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director


The Capita Press Office 0870 2400 488

The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 23,000 employees at more than 230
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285
million.

Capita has secured a number of awards including Best BPO Services Provider 2004.

Further information on The Capita Group Plc can be found at: www.capita.co.uk










                      This information is provided by RNS
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