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For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

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We store and use information you provide as follows:

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We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email in the first instance.

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Capita Group PLC (CPI)

  Print      Mail a friend       Annual reports

Wednesday 18 November, 2009

Capita Group PLC

Interim Management Statement

18 November 2009


The Capita Group Plc ("Capita"), the UK's leading business process outsourcing
("BPO") and professional services company, is today issuing its interim
management statement covering the 10 months to 31 October 2009 and progress to

Update on performance and financial position

Capita has performed well in the second half of 2009. Businesses across the
Group are trading robustly and the market for outsourcing remains active.

We are making excellent progress meeting our key financial targets for the
year. We have also maintained strong cash generation, contained capital
expenditure and retained an efficient capital structure with relatively low
gearing. Capita's financial strength and stability continues to be an important
differentiator with clients seeking sustainable long term partnerships.

The breadth of our resources and capability position us well in the market for
outsourcing in the UK. We have secured 15 major contracts, worth a total of £
1bn, so far this year and are seeing a good level of bidding activity across a
broad cross section of our target markets spanning both the private and public

Businesses across the Group are performing well. Less than 10% of our Group
revenues are generated by businesses that are potentially vulnerable to a
weaker economy and this risk was factored into our 2009 business planning. Of
these businesses, our property consultancy, resourcing and share registration
businesses are performing in line with expectations. Conversely, our
collectives and investment trust administration business, Capita Financial
Managers (CFM), which administers nearly 600 funds and has annual revenues of
c. £50m, continues to be adversely affected by the increased costs of IT and
the sharply increasing obligations of regulatory compliance.

In our Half Year Statement, we referred to the work we are undertaking to
resolve the suspension of 2 OEIC investment funds for which CFM is the
authorised corporate director. These 2 funds were affected by high redemptions
at a time of unprecedented market illiquidity post the collapse of Lehman
Brothers. In conjunction with the delegated investment manager, Arch Financial
Products LLP (Arch), and with the agreement of the depositaries, CFM suspended
dealing in the 2 funds on 13 March 2009. We are working constructively with the
Financial Services Authority (FSA), Arch, the depositaries to the funds and
other interested parties to resolve the suspension of the funds and to provide
shareholders with further information regarding the current value of the funds
and their future prospects.  There is the possibility of investors having
suffered detriment and we are also considering with the FSA and other parties
what action may need to be taken to remedy any such detriment.  Any material
costs incurred by Capita in resolving this matter will be disclosed separately
from the Group's underlying profit in our accounts for the year ended 31
December 2009.

Major contracts and acquisitions

Outsourcing contracts: Since announcing our half year results in July, we have
secured a further 5 contracts to deliver outsourced services. Key contract news
announced since the half year:

  * NHS Business Services Authority (NHSBSA) - in exclusive dialogue with
    Capita for the provision of dental contract support services (DCSS) and a
    managed IT service (MITI) to support the Authority, its current portfolio
    of activities and future growth. The contract will be finalised at the end
    of 2009 and is expected to be valued in excess of £100m over 7 years.
  * Becta - to manage grant administration for the Government's Home Access
    programme, which provides computers and connectivity to low-income families
    to support learning. The contract is valued at £15.7m, commenced on 16
    October 2009 and will run to June 2011.
  * BBC Audience Services - re-awarded contract, worth £45m over 9 years, to
    handle complaints, comments and enquiries via phone calls, emails, SMS and
    letters. We will also provide action lines for issue-related programming,
    audience management and ticketing, as well as daily feedback to the BBC
    from viewers and listeners about how audiences feel about BBC content.
  * Our local government services business has secured two contracts worth a
    total £25m with Hart District Council and Havant Borough Council.
We remain encouraged by the level of opportunities across our chosen markets
and we are seeing consistent interest in the benefits that outsourcing can
deliver from organisations facing increased competitive and economic pressures.

Acquisitions form an important part of our growth strategy. We look to acquire
small to medium sized businesses that will strengthen our position in our
target markets or bring complementary skills and services. This year, we have
acquired businesses in a number of our target markets, particularly in the
financial services and health markets where we are expanding our presence. We
are also focused on growing our IT Services business with the acquisition in
June of Carillion IT Services Ltd for £36m. This business has been successfully
integrated into our core IT business and our enlarged IT business is trading

To date in 2009, we have acquired 10 businesses for a total consideration of £
98m. We have a good pipeline of potential acquisitions but we are having to be
very cautious in the current climate when evaluating due diligence on these

In June, the Competition Commission concluded that Capita should divest the
Revenue and Benefits business unit of IBS OPENSystems Ltd (IBS), which formed
approximately one third of IBS. The divestment of this business unit to Civica
was announced on 31 July 2009. The Commission cleared the acquisition of the
remaining housing business unit of IBS enabling us to create an enhanced and
significantly strengthened social housing operation which brings together the
expertise and resources of both the IBS and Capita teams.

Operational delivery and performance

We continue to grow our life and pensions operations and we are now responsible
for administering 25 million policies in total. The AXA contract, worth £523m
over 15 years, commenced on 1 June with the smooth transition of 1,150
employees in the UK, with a further 550 employees at AXA's Indian-based
operation transferring on 1 September to our sites in Pune and Bangalore. We
have also established a new contact centre capability for AXA in our Craigforth
facility in Scotland. Although only early into the contract, we have achieved
step improvements in service and are hitting our critical service level

Following an interim services agreement which commenced at the end of November
2008, we signed a contract in March 2009 (effective May 2009) with the Learning
and Skills Council (LSC) to manage the administration of a range of allowances
to support learners, including the Education Maintenance Allowance (EMA) and
the Adult Learning Grant (ALG). Since assuming responsibility for the services
we have achieved all of our core objectives. As well as stabilising all of the
inherited systems supporting the service and introducing an interim system to
support application administration, enrolment and payment in relation to the
EMA and ALG schemes, we have consistently achieved our service level targets
and met the expectations of the LSC and their stakeholders.

In March, the Office for National Statistics (ONS) selected Capita to recruit
and train around 35,000 temporary ONS workers who will work as field staff for
the 2011 Census of Population and Housing in England and Wales and to
administer their pay. At its peak, we will be paying 20,000 people per week,
one of the largest weekly payrolls in the UK. Our process introduces innovative
interactive voice recognition software for lodging timesheets. The first major
milestone in the process, a census rehearsal involving 400 temporary field
staff, in Newham, Lancaster and Ynys Môn, Isle of Anglesey, alongside a small
scale test in Birmingham, successfully took place in October.

Our enlarged IT Services business has had recent successes in expanding its
presence, particularly in the health and education sectors. In July, we were
appointed by NHS Hounslow to provide a tailored ICT managed service capable of
delivering enhanced levels of service across 71 locations, including hospitals
and GP surgeries. In August, a contract commenced in partnership with Carillion
plc and Durham County Council for Capita to deliver end to end ICT
infrastructure to transform the learning environment for an initial 4 new
schools in Durham as part of the Government's Building Schools for the Future
(BSF) programme. In September, the business was appointed by Suffolk New
College, to deliver a communications infrastructure capable of meeting future
education needs and transforming campus life.


Trading across the Group remains strong and we are confident we will deliver
underlying profit growth for 2009 in line with market expectations. We are
encouraged by prospects across the Group, providing us with a strong platform
for further growth in 2010 and beyond.


Paul Pindar, Chief Executive, and Simon Pilling, Chief Operating Officer, of
The Capita Group Plc, will host a conference call for investors and analysts at
8.00am today.

Details of the conference call are: dial-in number: +44 (0) 20 8609 0581.

A replay of the call will be available until 2 December 2009: dial-in number:
+44 (0) 20 8609 0289, pin: 273229#.

For further information please contact:

Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Tel: 020 7799 1525

Media enquiries:
Caroline Mooney
Capita press office
Tel: 0207 654 2152 or 0870 2400 488 (out of hours)

Andrew Lorenz
Financial Dynamics
Tel: 020 7269 7121

The Capita Group Plc is the UK's leading provider of BPO and integrated
professional support service solutions. With 36,000 people at more than 300
sites, including 59 business centres across the UK, Ireland, the Channel
Islands and India, the Group uses its expertise, infrastructure and scale
benefits to transform its clients' services, driving down costs and adding
value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE100 with revenues for 2008 of £2,441 million.

Further information on The Capita Group Plc can be found at: http://