Capita upbeat after £800m contract bonanza so far this year

Services monolith anticipating solid 2013 growth after stellar opening period

Capita is celebrating a sales bonanza as an interim management statement (IMS) has revealed the outsourcing giant has won £823m in new contracts during 2013's opening months.

The London-listed firm today issued the markets with a statement announcing it has won four major deals worth a total of £660m, as well as another £163m in greenfield business so far in 2013. Included in this is a 10-year joint venture with the Cabinet Office in which Capita holds a 51 per cent stake. The contract is anticipated to be worth up to £40m a year to the services titan.

Another deal with the Cabinet Office covering the Civil Service Learning Agreement is pegged at £60m over the next three years, while a 10-year contract with the Carphone Warehouse is set to rake in £160m over the course of a decade. Completing the contract quartet is a £40m agreement over five years with the University of Strathclyde.

So far this year Capita has also acquired seven businesses for a total of £165m. These include Northgate Managed Services, iQor UK, KnowledgePool Group and G2G3.

The company's bid pipeline of £25m-plus deals where it is down to the last four bidders or fewer stands at £5.2bn as of February this year. This compares with £4.8bn in November 2012. The pipeline comprises 27 tenders, one of which is a renewal and the rest of which are new opportunities.

The IMS concludes with an upbeat assessment of Capita's prospects for the rest of the year, with the company forecasting both organic and acquisitive growth for the year.

"The market for customer management and BPM remains very active in the UK, with government and commercial organisations under pressure to maintain and develop efficient operational models which deliver quality services while achieving value for money," said the statement.

"This buoyant sales environment underpins our confidence in the group's long-term performance and growth prospects. We remain on track to deliver strong growth in 2013 as a result of major contract wins and acquisitions completed during 2012 and to date in 2013 and anticipate continued strong progress into 2014 and beyond."