Capita profits rise, divi up 17%

25th Feb 2010 07:23

Outsourcing giant Capita announced a strong improvement in pre-tax profits, but the rise still came in below market forecasts.Pre-tax profit for the year ended 31 December rose to £258.1m, up from £226.6m in 2008 but below broker forecasts of £321m. However, underlying pre-tax profits increased to £325.1m from £277.2m last time.Revenue came to £2.69bn compared with £2.44bn last time, in line with expectations.The group also reported a 17% dividend increase to 16.8p per share from 14.4p last time.'Capita is well placed to continue its growth and is enjoying a healthy flow of new business opportunities,' said chief executive Paul Pindar.'Our pipeline of sales prospects, strong forward visibility of revenues from our long term contracts and consistent operational performance position us well for further progress in 2010 and thereafter.'