Strong sales, operational and financial performance
Year on year change
|Profit before tax||£475.0m*||+14%||£215.0m|
|Earnings per share||59.4p*||+14%||27.05p|
|Total dividend per share||26.5p||+13%||26.5p|
*On an ongoing basis, 2013 numbers excluding the partial sale of our Insurance Distribution and planned SIP business closure. Disposal and closure costs, including goodwill, total £146.7m, see note 2 of the preliminary statement. 2012 numbers have not been restated on this basis.
**Adjusted for new pension standard IAS19(R). Excludes non-underlying items detailed in note 3 administrative expenses, in the notes to the preliminary statement.
Delivering sustainable growth
- £3.3bn contract wins (2012: £4.0bn), 81% new/19% extensions
- Secured largest ever contract win by annual value with Telefónica UK (O2), £1.2bn over 10 years
- Highest ever contract win rate of 2 in 3 (by value)
- Achieved organic growth of 8% (2012: 3%)
- £5.5bn bid pipeline (November 2013: £4.2bn), well diversified across our target markets
- £271m spent on 13 acquisitions broadening our operational capability and market reach
- Swift resolution of 2 underperforming areas within our Insurance & Benefits division
Strong financial performance
- Revenue* growth of 15%
- Underlying operating margin* of 13.4%
- Underlying earnings per share* up 14% to 59.4p
- Total dividend up 13% to 26.5p
- Underlying operating cash conversion rate* of 106% (2012:110%)
- Underlying free cash flow* of £312m (2012: £307m)
Strong start to 2014
- £588m new contract wins to date including:
- £145m contract with Transport for London to deliver the congestion charging and traffic enforcement schemes
- £325m framework contract for Scottish Wide Area Network
Paul Pindar, Chief Executive of Capita plc, commented:
"2013 was a year of strong sales, operational and financial performance. We accelerated our organic growth, sustained good cash generation and are reporting record underlying profits for the 25th successive year. This provides a strong platform for further growth in 2014 under the leadership of Andy Parker and the wider team."
Andy Parker, Deputy Chief Executive of Capita plc, commented:
"As a consequence of the sales successes in 2013 and to date in 2014, along with the acquisitions completed over the previous 12 months, we have excellent revenue visibility and the ingredients in place to deliver continued strong growth in 2014. The UK market for customer and business process management remains very encouraging with major opportunities broadly spread across both our private and public sector markets, as evidenced by our current bid pipeline. Together this underpins our confidence in the Group’s long term growth prospects."