Capita Plc is on track to have one of its most profitable years to date. The outsourcing giant has had its revenues rise sharply as the company continues its expansion drive.
In 2015, Capita has acquired 16 companies - the biggest of which being the buyout of German call centre group Avocis in February for €210m.
2015 has also been a good year for the company in terms of contract wins. Capita’s new contracts and contract renewals are valued at £1.77bn for this financial year, a considerable step-up from last year’s £1.63bn.
The company expects to hit “low double digit underlying revenue growth” this financial year, which puts it on course to achieve its cash conversion target of 100 per cent.
Andy Parker, Capita’s CEO, is confident the company’s performance will continue improving in 2016, “We anticipate the acceleration of organic growth in 2016. The bid pipeline remains strong, standing at a total of £5.1bn… with results in financial services, telecoms and local government to be announced in the first quarter.”
The good news come just after reports that Capita has failed to acquire Xchanging, having been outbidden by US-based CSC.
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Related: CSC set to acquire UK’s Xchanging