28 February 2003
Capita, the business services group, said it expected to double its revenue from transport projects in 2003, following the apparent success of the London congestion charging scheme.
Despite a rollercoaster year for the firm, hit by the fiasco over the Criminal Records Bureau's failure to reach its targets, it announced pre-tax profits of £98.2m for 2002, an increase of 36%.
Turnover also increased by 30%, up from £691m to £898m, with £1.1bn of new contract wins. Capita's capital expenditure hit £57m, unusually high, and gives an indication of its investment levels in the congestion charging scheme and the CRB.
Capita has refused to disclose its investment in the traffic management scheme under a £230m five-year deal with Transport for London. It has developed the computer and call centre system and now owns the intellectual property rights to these.
According to Capita's annual report, up to 35 local authorities have registered an interest in congestion charging. 'We consider transport as a potential market for further significant growth. We expect our revenues from the transport sector to double in 2003,' it said.
Capita came out unscathed from share falls experienced by other private firms with a large presence in the public sector.
This may be due to its propensity for public/private partnerships that utilise its network of business centres rather than the more risky Private Finance Initiative.
It has also largely shrugged off the political criticism surrounding the delays at the CRB and the cancellation of its contract to administer Individual Learning Accounts, with £116m worth of new contracts in 2003 already.
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