Today Capita issued its interim management statement, covering trading and financial progress to date in 2012:
Overview
Capita has achieved a strong sales performance to date in 2012 with record major contract wins totalling £1.7bn. We are experiencing high levels of sales activity in the UK business process management and customer services marketplace as evidenced by both our bid pipeline, which has been swiftly replenished and currently stands at £4.0bn (July 2012: £4.1bn), and the buoyant prospects list sitting behind this. We are expecting a number of decisions regarding bids in the pipeline towards the end of Q4 and in Q1 2013. We remain well placed to achieve renewed organic growth in line with expectations in 2012 and anticipate further strong progress in 2013.
Performance across our key financial metrics is in line with expectations. At the beginning of this year, we set ourselves three key objectives for 2012:
- achieve continued strong profit performance
- secure organic growth of 3% for the full year
- deliver improved conversion of operating profit to operating cash compared to 2011.
We believe we are on track to achieve all of these.
Securing organic growth
In 2012 to date, we have won 33 major sales contracts with an aggregate value of £1.7bn (November 2011 IMS: 16 new contracts totalling £1.3bn) of which 76%
relates to new contract wins and 24% to renewals.
