Capita's shares were leading the FTSE 100 risers this morning, after the outsourcing company revealed it had made a "solid start to 2016" and was making "steady progress" to securing contracts in a trading statement ahead of its AGM.
Capita revealed that it had secured £458m aggregate major contracts – including five district council shared services contract worth £139m over a nine-year period – acquired four companies for a total consideration of £23m and disposed of two businesses.
Meanwhile, Capita described its bid pipeline as "active", while being valued at £4.7bn back in February.
As a result of the strong start, the company said that it was confident it would achieve its target of at least four per cent organic growth for the year.
"With divisional growth building on the success of last year, our steady progress in securing major new and extended contracts, further anticipated conversion of our bid pipeline and a good pipeline of potential small to medium sized acquisitions, we are on track to meet consensus expectations in 2016," the trading statement read. "We will continue to manage the business to deliver strong earning per share growth, cash flow and return on capital and remain confident about the significant structural growth opportunities in our markets going forward."
At time of writing, shares were trading up 5.3 per cent at 1,078p.
10 May 2016 @ 10:00amCapita (CPI)
Capita will be hosting its AGM in London this morning, where shareholders have been asked to vote on 19 resolutions, including the directors' remuneration report and the final dividend declaration of 21.2 pence per share.
Chief executive Andy Parker's total pay packet for 2015 was £2.7m, up only slightly on the prior year's £2.6m.
Back in February, Capita announced that chairman Martin Bolland would be stepping down after seven years in the role. Bolland's pay for the year ended December 2015 was £200,000, the same as in 2014.