The market is beginning to be won around by Capita, though it is taking some time. The shares fell sharply in February when the outsourcing specialist admitted that its pipeline of potential work was down sharply and that the average length of contracts was falling too. Capita’s investment case is based on continuing organic revenue growth that is added to by small acquisitions, and there were concerns that it was in a trough year, with new work not coming in the door fast enough and a lower rate of deals after last year’s £157 million purchase of Avocis on the Continent.
The company said at the annual meeting yesterday that contract wins so far this year totalled £458 million, as against £1.2 billion for