Business
Half-year Report
Half-year Report.
About this update from Capita Plc
[{"type":"text","content":"\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n\nCapita plc\n\nHalf year results for the 6 months to 30 June 2016\n\n\n\nFinancial highlights\nUnderlying1 2016\nUnderlying1 2015\nYOYchange\n\nReported2016\n\n\n\nRevenue\n£2,405m\n£2,283m\n+5\n%\n\n£2,430m\n\n\n\nOperating profit\n£317.6m\n£288.8m\n+10\n%\n\n£236.3m\n\n\n\nProfit before tax\n£285.3m\n£264.9m\n+8\n%\n\n£186.1m\n\n\n\nEarnings per share\n34.2p\n32.0p\n+7\n%\n\n22.4p\n\n\n\nInterim dividend per share\n11.1p\n10.5p\n+6\n%\n\n11.1p\n\n\n\nHighlights\n\nGood financial results\n\n• Underlying revenue growth on a like for like basis1 of 8.8%, including 5.0% organic growth net of attrition\n\n• Underlying operating margin1 of 13.2% (H1 2015 on a like for like basis1: 12.9%)\n\n• Underlying profit before tax1 up 8% to £285.3m (H1 2015: £264.9m)\n\n• Underlying earnings per share1 up 7% to 34.2p (H1 2015: 32.0p)\n\n• Interim dividend up 6% to 11.1p (H1 2015: 10.5p)\n\n• Underlying cash flow1 from operations £388m (H1 2015 £300m), a cash conversion ratio of 122% (H1 2015: 104%)\n\n• Net debt to annualised EBITDA1 of 2.49, with headroom of £1.1bn, at end June 2016\n\n• Post tax ROCE1 15.0% (FY 2015: 15.0%)\n\n• Reported profit before tax £186.1m (H1 2015: £146.1m)\n\n• Reported earnings per share 22.4p (H1 2015 17.7p).\n\nSteady flow of major contract wins and acquisitions\n\n• £879m of major contract wins (H1 2015: £1.6bn) including:\n\n - Tesco Mobile customer management services, worth £140m over 5 years\n\n - Five Councils shared services platform, worth £139m over 9 years\n\n - Extension of our relationship with Department for Work and Pensions Personal Independence Payments (PIP) assessments, worth £210m (based on volume assumptions)\n\n• Major contract win rate 1 in 2\n\n• Bid pipeline £5.1bn (February 2016: £4.7bn), with a weighted average contract length of 7 years (February 2016: 6 years)\n\n• 6 acquisitions for a total consideration of £84m, including Trustmarque, a leading software reseller and provider of cloud services.\n\nAndy Parker, Chief Executive of Capita plc, commented:\n\n“In the first half of 2016, Capita achieved good profit growth driven organically by major contracts and our trading businesses, and through acquisitions made part way through 2015. We also de...