Continuing to deliver shareholder value
Financial highlights Underlying* 2014 Underlying*2013 Underlying* YOY change Reported
Revenue £4,372m  £3,851m +14%  £4,378m
Operating profit £576.3m  £516.9m +11%  £388.9m
Profit before tax £535.7m  £475.0m +13%  £292.4m
Earnings per share 65.15p  59.40p +10%  35.79p
Total dividend per share 29.2p  26.5p +10%  29.2p   

*Excludes non-underlying items detailed in note 2 business disposal, note 3 administrative expenses and note 4 net finance costs, in the notes to the preliminary statement.

Highlights

Strong financial and operating performance in 2014

  • Underlying revenue growth* of 14%, including 9% organic growth
  • Underlying operating margin* 13.2% (2013: 13.4%)
  • Underlying profit before tax* up 13% to £535.7m (2013: £475.0m)
  • Underlying earnings per share* up 10% to 65.15p (2013: 59.4p)
  • Total dividend up 10% to 29.2p (2013: 26.5p)
  • Underlying operating cash* conversion rate of 112% (2013: 106%)
  • Underlying free cash flow* up 18% to £368m (2013: £312m)
  • Post-tax ROCE* 14.8% (2013: 15.5%)
  • Reported profit before tax up 36% to £292.4m (2013: £215.0m)
  • £1.7bn contract wins (2013: £3.3bn), with contract win rate of 1 in 2 (by value)
  • £310m spent on 17 acquisitions to enhance capability and facilitate future organic growth

An excellent start to 2015

  • £1.1bn contracts secured to date (2014: £588m), including Fera preferred bidder and Sheffield extension
  • Bid pipeline increased to £5.1bn (November 2014: £4.1bn), 53% private and 47% public sector
  • Agreement to acquire avocis adds significant future growth platform in Germany and Switzerland
  • Good visibility of low double digit revenue growth in the full year

Platform to drive further value creation

  • We operate in a large addressable market and have significant scope to increase penetration
  • We focus upon leveraging our competitive advantages of scale, unique breadth of capabilities and
     experience in delivering transformational partnerships
  • We continue to manage the business to deliver strong EPS growth, cash flow and return on capital.

Andy Parker, Chief Executive of Capita plc, commented:

"2014 was a year of excellent financial performance, with 9% organic revenue growth, sustained high returns and levels of cash generation, and an active year for acquisitions. We have good visibility of strong revenue growth in 2015, which will be driven by the conversion of our bid pipeline, acquisitions and the full benefit from last year's contract wins and acquisitions. We have significant scope to increase penetration of our large and growing addressable market, supported by a number of structural factors such as fiscal pressure, digitisation, regulation and demographics and our own competitive advantages. This leads us to look forward to the medium to long term with confidence."

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