Capita increases 2014 interim dividend by 10.3%

DividendMax Ltd.

Capita increases 2014 interim dividend by 10.3%

Delivering profitable growth

£1.3bn of major contract wins secured in H1 2014 including:

- £400m strategic partnership contract with the Defence Infrastructure
Organisation (DIO)

- £325m framework contract for Scottish Wide Area Network (SWAN)

- £145m congestion charging and traffic enforcement schemes contract for
Transport for London (TfL)

- £93.5m online customer management contract with John Lewis

Major contract win rate above 2 in 3

Organic revenue growth of 11% (H1 2013: 3%); full year organic
revenue growth expectation of at least 8%, net of attrition

Bid pipeline replenished to a record £5.7bn (Feb 2014: £5.5bn); strong
platform for 2015/16 growth

Highest ever level of prospects behind bid pipeline, with opportunities
across our diverse markets

Active acquisition pipeline; £240m invested to date on 10
businesses, expanding capabilities and market reach to fuel future organic

Good financial performance

Revenue up 13.9% to £2.1bn (H1 2013: £1.8bn)

Underlying profit before tax up 16.0% to £238.0m (H1 2013: £205.2m)

Underlying operating margin of 12.6% (H1 2013: 12.5%)

Operating cash flow up 21.6% to £291m (H1 2013: £239m); 112% cash
conversion (H1 2013: 105%)

Gearing at 2.3 times net debt to EBITDA (H1 2013: 2.2 times)

Andy Parker, Chief Executive of Capita plc, commented: 
"I am pleased to report good financial results for the first 6
months of the year, demonstrating the strength of Capita's sales offering and
operational delivery and the health of the UK customer and business process
management market. Our breadth of capability across a diversified and growing
market base enables us to move flexibly across sectors and to maintain a high
level of selectivity regarding the opportunities that we pursue. We have had
an excellent sales period securing £1.3bn of contracts and we are continuing
to see a high level of activity across our markets, particularly in the
private sector, providing a strong future platform for growth.

As a consequence of our sales and acquisition performance in 2013
and to date in 2014, we have a high level of revenue visibility for 2014.
This, together with the strength of our bid and acquisition pipelines, gives
us confidence in our full year performance and provides a good platform for
growth in 2015 and beyond."

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