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Capita Group PLC (CPI)

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Monday 03 December, 2007

Capita Group PLC

Trading Statement

Capita Group PLC
03 December 2007

                                                                 3 December 2007



                              The Capita Group Plc



                                 Trading Update



The Capita Group Plc ('Capita') is issuing a trading update ahead of its
preliminary results announcement for the period ending 31 December 2007, due to
be released on 29 February 2008.



The strong first half revenue growth has accelerated in the second half, with
our businesses performing well.  Since our interim results in July 2007, we have
signed two significant contracts to deliver outsourced services on behalf of:



  • Co-operative Insurance - to administer 4.5 million policies across their
    life and pensions and unit trust operations.  The contract is worth £270
    million over 10 years (previously announced as £250m at preferred supplier
    stage).



  • Prudential UK - to administer 7 million mature life and pensions policies
    including group and individual pensions, investment bonds and life and
    endowment policies.  The contract is worth £722 million over 15 years.



To date in 2007, Capita has therefore won major contracts worth £1.89bn (FY
2006: £1.37bn), further strengthening our position as the UK's market leader in
business process outsourcing services to the public and private sectors.



A key element of our growth strategy is the acquisition of small to medium sized
companies which extend our presence in existing markets or provide a footprint
in a new market.  To date in 2007, we have completed twelve acquisitions for an
aggregate initial purchase consideration of £115m.  These acquisitions will make
a positive contribution towards our planned revenue growth for 2008.



From an operational perspective, Capita continues to perform strongly.  Our
operations in India are an increasingly important part of Capita's strategy
going forward.  Accordingly, our announcement last week that we will be
acquiring a significant proportion of the Prudential's Indian operations, taking
our head-count in India to some 2,300, is of considerable importance.  This
gives us increased scale, increased expertise and the opportunity to build our
offshore capabilities rapidly.



The Group continues to place the utmost importance on its core financial
disciplines.  This includes ensuring we sign contracts that enable us to create
value for our clients, balance performance and risk sensibly and generate
acceptable margins for Capita.  We have therefore built up a contract base which
delivers service excellence and continues to generate strong operating cash
flow.  With regard to the latter, we anticipate reporting a positive working
capital movement in 2007, notwithstanding the significant level of incremental
new revenue that the Group has secured.



Our bid pipeline has been replenished strongly after our record wins this year
and our two most active markets remain local government and life and pensions.
We also believe that our clients' likely emphasis in 2008 upon increasing cost
efficiency whilst materially improving service quality will generate an enhanced
level of opportunities.



With the excellent revenue visibility that we enjoy, we are confident we will
deliver a strong performance in 2007 and 2008 and we have a good pipeline of
opportunities to fuel growth beyond this.


Paul Pindar, Chief Executive, will host a conference call for investors and analysts at 9.00am today.

Details of the conference call are: dial-in number: +44 (0)1452 569 393, call reference: 25987067#.

A replay of the call will be available until 9 December: dial-in no: +44 (0)1452
550 000, call reference: 25987067#


                                    - Ends -


For further information:

The Capita Group Plc                                               020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director

Financial Dynamics                                                 020 7269 7121
Andrew Lorenz / Susanne Yule



Note to editors


The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions.  The Group's service capabilities encompass business
process outsourcing, (BPO), customer services, administration and support, human
resources, ICT, property consultancy, finance & treasury and consultancy
delivered to both public sector and private organisations.  With 28,500
employees at more than 250 offices across the UK, Channel Islands, Ireland and
India, Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE100 with revenues for 2006 of £1,739 million.  Further
information on The Capita Group Plc can be found at:  www.capita.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange