28 March 2006
Results 2005 - Chairman's Statement
Capita has enjoyed a highly successful year in 2005. We have continued to build upon our position as the UK’s market leader in providing business process outsourcing (BPO) services to the public and private sectors and our successes during 2005 have positioned us strongly for 2006.
Capita now prepares accounts in accordance with International Financial Reporting Standards (IFRS). Consequently, in the results below, the comparatives have been restated to reflect this change.
In the year ended 31 December 2005, turnover increased by 12% to £1,436m (2004: £1,282m, excluding discontinued operations). Operating profits before the share based payment charge and before amortisation of separately identifiable intangible assets (‘intangibles’) and impairment rose by 19% to £190.7m (2004: £160.5m) and profits before taxation, share based payment charge, intangible amortisation and impairment increased by 19% to £177.2m (2004: £148.6m). Earnings per share before share based payment charge, intangible amortisation and impairment grew by 21% to 19.44p (2004: 16.08p excluding discontinued operations).
Operating cash flow was particularly strong, rising by 16% to £232m (2004: £200m). We have increased dividends by 31% and returned a further £50m to shareholders through purchasing our own shares. In total, including the proposed final dividend, we will be returning £96m to shareholders in respect of the 2005 financial year.
We are excited by the continued development of the Group and are committed to building long term, sustainable value for our stakeholders, primarily our shareholders, customers and our employees.