Capita, who depend on the government for much of their turnover, lifted revenues and profits in the year to 31 December despite the coalition government’s austerity measures.

Pre-tax profits climbed to £364.2m from £325.1m on revenues that rose to £2.74bn from £2.69bn.

Capita, whose activities include collecting the TV license, said it is strongly positioned despite having faced a slowdown in decision making on major outsourcing contracts.

Paul Pindar, Chief Executive of Capita Group Plc, commented: "Capita delivered a good performance in 2010, with the majority of businesses across the Group producing robust results against a challenging background. A focus on optimising our operational infrastructure and on growing our offshore operation ensured that we continued to increase margins.

"In 2010, we faced a slowdown in decisions on major outsourcing contracts, lower additional spend by existing clients and reduced activity in some of our transactional trading operations due to constraints on public spending. Notwithstanding these challenges, Capita is positioned strongly for securing new business in 2011."