A winning streak nets Capita £72m

THE Capita Group claimed it is winning half of the outsourcing contracts it bids for, compared with an industry average of one fifth.

Executive chairman Rod Aldridge said that the biggest contract so far was February's deal to take over management of the BBC's TV licensing business from Consignia.

This is worth about £500m to Capita over the next 10 years, and performance-related add-ons could bring in more if Capita gets it right. Pre-tax profits for the year to 31 December rose 41% to £72.1m on turnover 52% ahead at £691m and margins trimmed by 0.8% to 11.2%. Earnings per share are up 39% at 7.80p while the total dividend is 36% better at 2.25p.

The shares put on 3 3/4p to 444 3/4p, as Capita's Aldridge said there was plenty to go for, estimating the outsourcing market to stand at morte than £50bn with growth in prospect.

The £744m of contracts won last year means strong organic growth this year, Aldridge said. 'Back to basics' is the theme for new chief executive Graeme McCallum as he plans recovery at housebuilder Wilson Connolly.

Timber frame construction will be halved, the land bank is to be increased and its Scottish office has been closed in addition to a series of other amalgamations that will save £4.5m.

McCallum promises operating margins of at least 15% by 2004 and a 20% compound earnings growth over the next three years. He recognises that attempts by his predecessor, John Tutte, to introduce modern techniques that included prefabricated construction, have failed.

In the year to last December, pre-tax profits slumped to £47.1m from the previous years £66.8 million. The total dividend is cut to 6.5p from 8p.