Capita reports first half results boosted by HHH contract win

Capita reported a 17% increase in turnover for half-year results, boosted by the Hill House Hammond run-off account.

Turnover increased from £532m to £620m for the half year.

Pre-tax profit before goodwill amortisation and exceptional items grew 25% from £51m in the first half of 2003, to £63.6m in the first half of 2004.

During the first half of the year Capita won the run-off contract for Hill House Hammond, worth £10m over the next two years.

The company also said it had won significant new business across its London market operations, and legal and medical helplines.

“We are continuing the refocusing of our volume loss adjusting services into higher value added propositions utilising our newly implemented SAP technology,” said the company.

“We remain at the forefront of the major loss sector of the market and have recently strengthened this position by our appointment to a major insurer's loss adjusting panel”.

Capita said it had won a total of £1.13bn in new contracts during the first seven months of 2004, 58% of which were from the private sector, and 42% of which were from the public sector.

Capita Group executive chairman Rod Aldridge said: “Capita operates a simple, sustainable business model in buoyant and expanding markets. The business is trading strongly, generating healthy profits and cash flow.

“We are confident in our ability to generate long term value for shareholders, based on a platform of high visibility of future revenues and good prospects for further growth.”