Capita on track, but problem areas still need addressing

Having commented on the half time numbers (see Capita - matching the words with the music), we have now pored over the detail and heard from management on Capita's performance and prospects.

CE Paul Pindar talked about ‘real momentum’ having returned to the UK BPS market following 2011, which he admitted was one of the most challenging years in Capita’s history. Top line revenue steamed ahead—up 15% in the first half, thanks to the recent spate of acquisitions. And Pindar is confident that Capita will deliver 3% organic growth in the full year, accelerating from its flat performance in the first half.

But we think problems in key areas like general insurance, property consultancy, life and pensions and IT services are holding the UK BPS market leader back, and putting pressure on margins. Subscribers to TechMarketView's BusinessProcessViews service can read the analysis and implications here.