Fresh contracts worth £1.3bn boost Capita’s first-half revenues

Suzie Neuwirth
A STREAM of major contract wins, including a £145m deal with Transport for London, helped outsourcing firm Capita’s profit to soar in the first half of the year.

The FTSE 100-listed firm said yesterday that it secured £1.3bn in new contracts over the period, including a 10-year £400m agreement to support the management of the Ministry of Defence’s estate.

Revenue rose 13.9 per cent to £2.07bn, while pre-tax profit rose 16 per cent to £238m.

Capita recently secured a prisoner tagging contract worth £400m over six years, previously held by its shamed peers G4S and Serco, which were found to be overcharging the government. It is currently running the contract on an interim basis.

The company’s current bid pipeline stands at £5.7bn, roughly split between the public and private sector. Capita said it was confident of continued growth in 2015 and beyond.

Shares closed up 4.76 per cent at 1,210p yesterday.