Capita optimistic despite hung parliament

11th May 2010 07:12

Capita will continue to focus on providing services to central government despite the uncertain make-up of the next UK government, the outsourcing group said as it reported strong trading so far this year.Capita, whose activities include administering the payment of TV licenses and managing teachers' pensions, said all its key metrics remain on track this year, with a strong bid pipeline.'The market for significant outsourcing opportunities is buoyant,' it said.Capita, which saw its share price fall on Friday after the general election resulted in a hung parliament, appeared optimistic about the prospects for outsourcing in the UK.'Although the future shape of the government is still unclear, there remains an imperative to address the fiscal deficit in the UK,' it said.'Therefore we continue to increase our focus on the central government market. We believe that outsourcing will play a key role in helping the Government to introduce efficiencies and deliver quality public services and we are well placed to help in this.'However, Capita warned that turnover growth for the year will be 'modest' due to quieter sales activity in the second half of 2009.Capita also announced that Sheffield City Council has asked the company to deliver its customer services operations in a deal expected to be worth £67m and said that it is in the final stages of negotiations of a deal to provide support for Virgin Money's home and vehicle insurance activities.