Capita profit up as contracts roll in

Outsourcing group Capita reported a seven per cent rise in first-half underlying profit, with the period boosted by major contract wins as demand returns in the public and private sector markets, the group said.

Capita, which runs the Teachers' Pension Scheme, TV licensing for the BBC and the Criminal Records Bureau in the UK, said underlying pre-tax profit was £174M for the six months to 30 June.

This compared with £163.1M for the same period in 2010.

"Our bid pipeline has been rapidly replenished to its previous record level of £4.7bn of opportunities, with buoyant activity in the local government and life and pensions markets and growing activity across central government," chief executive Paul Pindar said in a statement.

The group, which signed an expanded £570m contract with Zurich to begin running its overseas life and pension administrations in June, said it had won work totalling £1.1bn in its first half, more than double the amount won in 2010 for the same period.

Capita, which has spent £194m on 11 small and medium sized acquisitions in 2011, said it expected to buy more businesses in the second half of the year.