Capita's bid pipeline swells to record £5.7bn as private sector strengthens

Peter Spence
Follow Peter
Capita won a £145m Transport for London congestion charging contract in the first half of 2014 (Source: Reuters)

Outsourcing company Capita has announced a total of £1.3bn of major contract wins in the first half of this year, as its major contract win rate has exceeded 66 per cent.

Chief executive Andy Parker says that the firm's financial results have been "good", describing the start to the year as "an excellent sales period" for the company.

Capita has seen a "high level of activity across our markets, particularly in the private sector, providing a strong future platform for growth", says Parker. The firm enjoyed a 16 per cent rise in profit before tax to £238m in the six months to 30 June, and a 13.9 per cent jump in revenues in the same period.

The company now expects to see revenue growth of at least eight per cent this year, as its bid pipeline has grown to a record £5.7bn, up on the £5.5bn pipeline seen in February 2014. Capita says that this bid pipeline offers the company its "highest ever level of prospects" with opportunities across diverse markets.

Killik's Paul Kavanagh tweets that Capita has been a rare example of a trouble free 25 year investment, up by more than 120 times over the period.

In the first half of this year Capita secured a £400m contract with the Defence Infrastructure Organisation, a £325m contract for the Scottish Wide Area Network, a £145m congestion charging and traffic enforcement schemes contract for Transport for London, and a £93.5m online customer management contract with John Lewis.

Update: Shares rose by nearly 2.9 per cent as markets opened.