Investment case

Capita is the leading provider of technology-enabled customer management and business process management services in the UK, with a growing presence in Europe. We sell into 11 target markets across the private and public sectors and are organised into 9 divisions which deliver our services on a day-to-day today basis.

Investment characteristics
Value creation
Consistent execution with low volatility

Our business is stable, with the majority of revenue supported by long term contracts, annual contracts and repetitive work. We have high, stable margins and have consistently generated strong free cash flow through the economic cycle.

Strong performance culture

Capita has a strong open people and service based culture, with clear operational and financial key performance indicators, which helps to systematically drive our performance.

Large addressable growth market growing at

Capita operates in a large addressable market which is growing at a rate of around 5% per annum (source: Ovum). Structural drivers of growth include clients’ need to commercialise and maximise the value of their assets, the transformation and modernisation of services, digitisation, regulation and competition.

Competitive advantage

Our scale, unique breadth of capabilities and track record of delivery are competitive advantages when bidding. We also benefit from scale in procurement, operations and our use of technology.

High returns from acquisitions

Capita makes acquisitions to build capability in existing markets, enter new markets and enhance our future organic growth potential, typically acquiring between 10 and 20 companies per annum. We anticipate maintaining a long term total acquisition spend of between £250m and £300m per annum and seek to achieve a 15% post tax ROCE after integration into the group.

Progressive dividend policy

over 5 years


compound annual growth

Strong EPS growth track record

over 5 years


compound annual growth

Excellent returns on capital

on a continuing basis


post tax return 2015

Consistently strong cash flow


cash conversion rate

Total shareholder return

to end 2015


Over 10 years