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The Markets
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The Markets
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Business & education services

Capita PLC shares advance as it expects growth to quicken

A now leaner business process outsourcer Capita expects organic growth to quicken next year, it said, sending shares higher...

A now leaner business process outsourcer Capita (LON:CPI) is on track to deliver double digit revenue growth in the full year and expects organic growth to quicken next year, it said, sending shares higher.

The FTSE100 group's bid pipeline stands at £5.1bn, which consists of 29 bids, on which decisions are expected within the next 12 months.

It also announced today a new contract worth £62mln to provide customer management services for Unitymedia - Germany’s second largest broadband and cable provider. It is a seven year deal and starts immediately.

Its bid plans for Xchanging were scuppered last minute two days ago when CSC Computer Sciences International made a rival bid and Capita said it would not revise its 160p per share offer.

But Capita noted today that if that offer lapses, it could approach Xchanging again.

The firm added it expects underlying operating margin to be within its target range of 12.5% to 13.5% and comfortably ahead of the first half underlying operating margin of 12.7%.

Shares added 0.76% to 1,192p.

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