Outsourcing giant’s profits increased by 16% to £238m in the first half of 2014
Capita says that its underlying operating margin increased to 12.6% in the first half of 2014 compared with 12.5% in H1 2013.
The outsourcing giant said the increase was due to the improvement in its property and infrastructure and IT services businesses, as well as the disposal of underperforming insurance businesses in the second half of 2013.
The results were partly offset by start-up costs of new contracts and the ending of its disclosure and barring contract in March 2014.
Capita’s profits also increased by 16% to £238m in H1 2014 (H1 2013: £205.2m), while revenue went up by 13% to £2.1bn (H1 2013: £1.8bn).
Last November Capita sold its broking businesses – BDML, Sureterm, Lancaster and Delta – to Markerstudy and closed its self-invested pensions administration business.
At the time, Capita said the sale “followed a detailed review that concluded that the route to recovery for these businesses would take a long time and we therefore acted swiftly to resolve this”.
Capita said it remained confident that underlying full year group operating margins would be maintained between 12.5% and 13.5% for the forseeable future.
The company’s insurance activities now consist of outsourced business process services and investment in start-up MGAs.