Capita shares lifted by over 4% as long-negoiated government contracts finally pop up on the balance sheet.

Capita increased revenues 7% to £2.93bn last year, while pre-tax profits fell £309.8m to £302.9m following £82.3m of write-downs pertaining to acquisitions made during the period.

Capita Chief Executive Paul Pindar, chief executive of Capita, said: "We overestimated the speed with which the government would act. In its first year the Coalition spent time on the low-hanging fruit, and met its savings targets very effectively with strong headcount control, but now it is looking more to outsourcing."

Capita has inked five new deals so far this year, including a major contract to train the Civil Service signed earlier this week. The company is currently shortlisted for £4.6bn of further work; a third of these contracts are tendered by UK government.