Year in review

2015 in review

Split of revenue % : 47% - Public Sector, 53% - Private Sector

January

Retain

Value

£18.8m

March

Updata Infrastructure UK (Limited)

Value

£80m

May

AMT-SYBEX Group Limited

Value

£82m

May

Crown Mortgage Management

Value

£7.5m

August

Southwestern Business Process Services Limited

Value

£28m

September

Eclipse (Hardware) Limited

Value

£11.5m

December

Solid State Solutions Ltd (S3)

Value

£13m

January

Transport for London

Value

£145m

February

NHS Scotland

Value

£325m

May

BAE Systems

Value

£60m

March

Defence Infrastructure Organisation

Value

£400m

March

John Lewis

Value

£93m

November

Co-operative Bank

Value

£325m


Financial highlights 2015

2015 Underlying revenue

£4,674m

(2014: £4,372m)

2015 underlying profit before tax

£585.5m

(2014: £535.7m)

2015 underlying earnings per share

70.7p

(2014: 65.2p)

2015 total dividend per share

31.7p

(2014: 29.2p)

2015 in review

Capita is a financially focused business. We monitor performance against our clear financial aims and KPIs, with strong financial controls and effective governance. We focus particularly on KPIs in the following areas:

Key performance indicator Aim Context Progress in 2015
Operating margin1 Consistently maintain underlying operating margins We constantly monitor operating margins and manage operating costs to keep the business efficient and cost effective 13.7%
2014: 13.2%
Profit before tax1 Achieve long-term, consistent growth in profits Excludes non-underlying items

£585.5m
2014: £535.7m

Reported profit before tax  Achieve long-term, consistent growth in profits  Includes non-underlying items  £112.1m
2014: £292.4m 
Earnings per share (EPS)1 Achieve long term, consistent growth in EPS Long term growth in EPS is a fundamental driver of shareholder value. Board Directors’ incentive schemes have EPS targets to align their interests with those of our shareholders 70.73p
2014: 65.15p
Free cash flow1 Maintain an operating cash conversion ratio of at least 100% and high level of free cash flow We focus on securing timely payment terms and cash conversion underpinned by providing valued services and maintaining an efficient finance operation £348m
2014: £368m
Capital expenditure as % of revenue Invest capital expenditure (capex) to generate good returns for our shareholders We focus investment on opportunities that generate the best return for shareholders and avoid tying up too much capital in long-term projects 4.2%
(2014: 3.3%)
Return on capital employed (ROCE)1 Deliver ROCE which is well in excess of our cost of capital ROCE reflects how productively we deploy capital. It is incorporated in senior managements' long term incentive schemes, which are 25% based upon performance against ROCE targets. 14.3%
(2014: 14.8%)
Gearing - interest cover Maintain an efficient capital structure, with an appropriate level of gearing It is important for our clients that we are a low risk, stable partner, particularly where we are delivering large scale operations on their behalf 13.7x
(2013: 16.3x)
Economic profit1 Deliver value for shareholders through positive and steadily growing economic profit Group economic profit allows us to assess the value created in excess of the required return of the company's investors (equity shareholders and debt holders) £255m
(2014: £240m)
1 Excludes non-underlying items detailed in note 2 to the accounts. 2015 numbers exclude businesses exited and held for sale as detailed in note 4 business exits. 2014 numbers exclude the sale of the Occupational Health business also detailed in note 4 of the 2015 results statement.

2015 in review

We have identified the main impact areas that reflect our stakeholders’ interests. Focusing on these impacts helps us to add value and means that we can consistently meet the needs of all our stakeholders: shareholders, clients, employees, suppliers and the wider community.

Key performance indicator  Aim Context Progress in 2015
Shareholder value
Steadily grow ordinary dividends in line with profits (annual growth of total dividends) Demonstrates the financial health of the business and commitment to creating shareholder value 9%
2014: 10%
Client resources
Continue to develop our infrastructure of delivery centres to meet the needs of our business Reflects the scale and breadth of our offering for clients 94 multi- service delivery centres
2013: 80 centres
Create successful supplier relationships
Annually audit all strategic suppliers against Capita's standards of business A proactive approach to procurement helps us secure best value goods and services, which can improve our performance and that of our clients 100%
2014: 100%
Employee resources – leadership
Maintain high retention rate for managers (Executive Directors and senior management teams) We need to have the right leadership and skills to deliver the Group's long term growth strategy 98%
2014: 97%
Employee resources – skills & flexibility
Maintain overall employee retention at or above industry average1  Our people are vital to our success in delivering high quality, efficient services to our clients 81%
2014: 78%
Controlling our environmental impacts
Continue to measure and assess our carbon footprint2 and minimise wherever possible Although we are a low impact organisation, our aim is to manage and reduce our environmental impacts and use our resources efficiently 124,329
2014: 139,672
(tonnes CO2eq)
Supporting our communities
Continue to grow and measure our community investment annually, using London Benchmarking Group methodology Our business places us at the heart of the communities that we operate in and positive relationships are therefore vital to the long term health of the business £2.3m
(2014: £2.2m)

1 CIPD 2014 (86.4%)
2 Based on latest available greenhouse emission factors from the Department for Environment, Food & Rural Affairs 

Annual Report

Annual Report

Full Report 2015

(pdf, 4.6MB)
Annual Report

Strategic Report 2015

(pdf, 3.4MB)
Annual Report

Governance 2015

(pdf, 1.4MB)
Annual Report

Accounts 2015

(pdf, 1.1MB)