Capita plc
Half year results for the 6 months to 30 June 2012
Strong H1 performance and a positive outlook
Financial Highlights
| Half year 2012 | Half year 2011 | Change | |
| Revenue | £1,607m | £1,400m | + 15% |
| Underlying operating profit | £216.6m | £193.0m | + 12% |
| Underlying profit before tax | £190.7m | £174.0m | + 10% |
| Underlying earnings per share | 24.19p | 21.95p | + 10% |
| Interim dividend per share | 7.9p | 7.2p | + 10% |
Excludes non-underlying items being:
- intangible amortisation and acquisition expenses of £47.4m (H1 2011: £33.8m),
- the non-cash impact of mark to market movement on financial instruments of £0.5m credit (H1 2011: £1.2m credit).
After these non-underlying items:
- reported operating profit is £169.2m (H1 2011 £159.2m),
- reported profit before tax is £143.8m (H1 2011: £141.4m)
- reported earnings per share is 18.70p (H1 2011: 18.01p).
Key points
Creating profitable growth
- A record £1.3bn of major contract wins secured in H1 2012 (H1 2011: £1.1bn)
- Improving organic growth rate; clear visibility of meeting full year 2012 expectations
- Maintaining win rate of 1 in 2 reflecting our strong client propositions and operational capability
- High level of sales momentum; bid pipeline replenished well after recent wins to £4.1bn (February 2012: £4.6bn)
- Enhancing our offering through acquisitions; £642m spent in the 2 years to December 2011 and a further £129m invested in 10 acquisitions to date in 2012
- £271m raised in equity placing to fund stronger pipeline of potential acquisition opportunities
Delivering results
- Revenue up 15%, with 2011 & H1 2012 acquisitions contributing 15% and flat organic growth after attrition on 4 contracts of 5%, most of which related to activities that ended in H1 2011
- Underlying profit before tax increased by 10% to £190.7m (H1 2011: £174.0m)
- Underlying operating margin of 13.5% (H1 2011: 13.8%)
- Operating cash flow of £201m (H1 2011: £180m) and cash conversion improved to 93% from 85% at the full year 2011 (H1 2011: 93%)
Paul Pindar, Chief Executive of Capita plc, commented:
"With organic growth returning as expected, cash conversion improving and a good pipeline of potential acquisitions, Capita is positioned well for further growth. As a result of stronger major contract sales performance over the past 18 months, together with the contribution from recent acquisitions, we have clear visibility of revenue growth in 2012. These factors, coupled with the current buoyant sales environment, underpin our confidence in full year performance and provide a strong platform for further progression in 2013."
