Capita seals sextet of deals in first quarter

Outsourcing group Capita has secured six new major deals worth a total of 660m pounds since the start of the year.

Outsourcing group Capita has secured six new major deals worth a total of 660m pounds since the start of the year.

The FTSE 100 group, on the day of its annual general meeting, said it had made good financial progress in the first 19 weeks of the year and that it was "well placed" to grow in line with expectations over the full year.

Since the beginning of 2013 Capita has acquired seven companies for a total consideration of £165m, including IT outsourcer Northgate Managed Services, debt collector iQor, training outsourcers Knowledgepool and G2G3.

The group won new contracts with Carphone Warehouse and the University of Strathclyde and extended an existing training deal with the Cabinet Office to form a joint venture with the government department, as was announced in April.

Capita has taken on Carphone Warehouse's non-store customer services duties for the next ten years in a deal worth around £160m in total, while the Cabinet Office agreement is expected to generate revenue of £40m initially and anticipated to triple by the tenth year of the joint venture.

The contract win to provide computer technology for the University of Strathclyde is a first in the higher education sector, which the company described as having "exciting potential".

No new update was given on the major-bid pipeline since the company's annual results statement in February, when the figure stood at £5.2bn.

OH

Recommended

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Investing in drugmakers: uncommon profits from curing rare diseases
Share tips

Investing in drugmakers: uncommon profits from curing rare diseases

Treatments for medical conditions with only a small number of sufferers can still be very attractive for pharmaceutical companies and investors becaus…
20 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022
Delivering profits: should you buy Royal Mail shares?
Share tips

Delivering profits: should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022

Most Popular

Barry Norris: we’re already in the 1970s. Here’s how to invest
Investment strategy

Barry Norris: we’re already in the 1970s. Here’s how to invest

Merryn talks to Barry Norris of Argonaut capital about the parallels between now and the 1970s; the transition to “green” energy; and the one sector w…
19 May 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022