Capita has 'steady' organic growth

Outsourcing firm Capita Group has posted a 10% increase in turnover to £2.69bn (2008: £2.44bn) in its 2009 results.

Operating profit was up 11% to £357.7m (2008: £320.9m) and pre tax profits rose 17% to £325.1m £277.2m).

The company said organic growth was “steady”, with major contract wins and renewals totalling £1bn (2008: £1.24bn).

It spent £177.5m on 12 acquisitions, including personal lines broker Hero Insurance Services for £15m, which it said had now been integrated with its existing insurance distribution businesses (BDML, Lancaster Insurance and Thornside) “and is already achieving significant efficiency improvements through cost management and driving through synergy savings.”

Chief Executive Paul Pindar said: “Capita delivered a strong performance in 2009. Organic growth was steady across the year with a number of new major contracts secured in the year and with businesses across the Group delivering robust results.

“Additional spend by existing clients was lower in 2009 but a focus on optimising our operational infrastructure and the growth of our offshore operation ensured that we continued to increase margins.

“Capita is well placed to continue its growth and is enjoying a healthy flow of new business opportunities. Our pipeline of sales prospects, strong forward visibility of revenues from our long term contracts and consistent operational performance position us well for further progress in 2010 and thereafter.”