Record contract bid pipeline for Capita

Capita, which manages TV licensing for the BBC and provides a criminal records service for the Home Office, said it performed well in 2010 in a challenging environment that saw its customers delay major decisions about contracts amid cuts in spending.

Despite the squeeze, the group’s profit margins increased as it moved more of its work to India as part of efficiency savings.

It announced turnover increased by 2 per cent to £2.7bn and underlying operating profits lifted 10 per cent to £395.1m in 2010.

Although major contract wins and renewals reduced by 20 per cent to £795m amid the financial squeeze, the group said its markets were now becoming increasingly active.

It has a record £4.7bn of contract bids in place and has secured £244m of work in the first seven weeks of 2011.

Chief executive Paul Pindar said: “We enter 2011 with a record bid pipeline, increasing activity across the public and private sectors and some encouraging new contract wins. The need for our public sector clients to achieve substantial cost savings and for private sector clients to increase their efficiency to remain competitive offers significant opportunities for the group going forward.”

Capita is a diverse business whose expertise spans IT services for local government and the education sector, property consulting and human resources.