Triumphantly bucking the recession, London SW1-based Capita Group Plc consultancy and services business, has seen its eighth successive half-year period of growth in both revenue and profit. The company reports that pre-tax profits rose by 28% to UKP1.8m, while turnover was up 23.7% at UKP13.7m. Nonetheless, of the three divisions making up the public sector management and systems consultancy, it was again only facilities management that recorded an actual profit increase. This was up 81.9% at UKP1.1m. And chairman Ron Aldridge feels that the division’s projected income of UKP64m is an important measure of its strength. Likewise, the computer services subsidiary, Telecom Capita, which invested heavily in 1992, is felt to be in an excellent position to become market leader in the provision of computer services to local government over the next two years. As a result, its sales and marketing team has been strengthened to try and secure new business. Although this move was said to have brought about restrained profits over the current period, Capita testifies to signs of its success already. Several new facilities management agreements have been secured, including two big five-year contracts, one with Tynedale District Council to the value of UKP2.3m and the other with Dumfries & Galloway Regional Council worth UKP800,000. In addition, the list of prospective clients is reported to be strong. The managed services companies within the division are said to be making outstanding progress – the computerised revenue collection service of Capita Managed Services won 27 contracts this year. Capita claims to be the first UK company to manage the entire revenue function of a local authority, East Cambridgeshire District Council. The deal, worth UKP3.5m over five years, is hoped to be the first of many. Property services also saw its position consolidated via the acquisition of Estate Design & Management in April 1992 for an initial UKP1m.

National Health Service

Primarily focussed on the National Health Service, the business boasts a strong order book and is felt to fit in well with the group’s aims. However, belying Aldridge’s claims at the end of the 1991 financial year (CI No 1,867), the market for the group’s consultancy and marketing services has not yet begun to pick up. The consultancy services division saw profits fall 14.5% to UKP465,000, while the marketing services business recorded a smaller drop of 6% to UKP237,000. Within consultancy services, the management consultancy businesses performed below expectations. Nevertheless it is hoped that the proposed strengthening of the senior management team will help get them back on their feet again. The acquisition of RIPA International, a management training and consultancy company, also cost the division UKP430,000, although it is said to be trading well. J E Greatorex and Capita Corporate Finance continued to perform strongly. Despite a decline in market activity, Greatorex was ahead of budget at the half-year stage. However, in line with company policy, it aims to refocus its activities away from a lot of small assignments towards larger and more profitable commissions. Corporate finance was quoted as having further enhanced its position as market leader in advising local authorities on buy-outs. Following the successful completion of the London Buses Ltd buy-out of London Coaches, Capita feels it is an good position to help other municipal bus companies. Although the market continued to be tough for marketing services, new clients include Birmingham City Council, West Midlands police, West Midlands Development Agency and Central London Magistrates. Aldridge remains confident that the group can con-nue to turn in good results, by focussing strategy on securing large and profitable commissions, undertaken to impeccable levels of quality.