Public sector demand underpins Capita's confidence

Outsourcing giant Capita is confident it will deliver three per cent organic growth for the year and an improved cash conversion rate for 2012 as compared to 2011.

In terms of sales performance, 2012 has been a record year for major contract wins, with 33 contract wins set to bring in £1.7bn; at the same stage last year the group had won 16 major contracts in 2011 worth £1.3bn.

The group said it has swiftly replenished the bid pipeline after securing those big contracts so that it now stands at £4.0bn, slightly below the £4.1bn it stood at on July 31st. The bid pipeline comprises 26 bids, 98% relating to new contracts and 2% renewals. By value, 68% of the bids in the pipeline are public sector, mainly in central government, local government, education and defence and 32% are in the private sector, from the financial services, retail, utilities and telecoms sectors.

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The group is expecting a number of decisions regarding bids in the pipeline towards the end of this year and the first quarter of 2013.

"Behind our bid pipeline, there is a strong prospect list of opportunities at various stages of the bid process, including a number which are close to shortlist stage," the company said.

JH