Year in review

2016 in review - split in revenue %

Split of revenue %

Private and public sector - split of revenue

2016

Eight acquisitions

Value

£86.5m

2016

46% new business and 54% extensions and renewals

Value

£1.34bn


Financial highlights 2016

2016 underlying revenue

£4,898m

(2015: £4,674m)

2016 underlying profit before tax

£475.3m

(2015: £585.5m)

2016 underlying earnings per share

56.67p

(2015: 70.73p)

2016 total dividend per share

31.7p

(2015: 31.7p)

2016 in review

We consider that the following financial key performance indicators are important in measuring the delivery of our strategic goals.

Key performance indicator Aim Progress in 2016
Underlying profit before tax1 Achieve long-term, consistent growth in profits

£475.3m
2015: £585.5m

Underlying operating margin1 Consistently maintain underlying operating margins 11.1%
2015: 13.7% 
Underlying earnings per share (EPS)1 Achieve long term, consistent growth in EPS 56.67p
2015: 70.73p
Reported profit before tax  Achieve long-term, consistent growth in profits   £74.9m
2015: £112.1m  
Underlying free cash flow1 Maintain an operating cash conversion ratio of at, or around, 100% and high level of free cash flow

£472m
2015: £347m

139%
2015: 108

Capital expenditure Invest capital expenditure to generate good returns for our shareholders £154m
2015: £198m
Return on capital employed (ROCE)1 Deliver ROCE which is well in excess of our cost of capital 12.7%
2015: 15.0%
Gearing - interest cover Maintain an efficient capital structure, with an appropriate level of gearing 8.8x
2015: 13.2x
Dividend Maintain the dividend in 2017, rebuild the dividend cover in the medium term and return to steady dividend growth more reflective of the organic growth of the Company thereafter

31.7p
2015: 31.7p

1. Further details on our underlying performance are contained in the Consolidated Income Statement and notes 4, 5 and 9 in the 2016 results statement.

The calculation of underlying figures and our KPIs are contained in our Alternative Performance Measures.  

2016 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 Progress in 2016
Client resources
Continue to develop our infrastructure of delivery centres to meet the needs of our business 98 multi-service delivery centres
2015: 94 centres
Create successful supplier relationships
Annually audit all material1 suppliers against Capita's standards of business 51%
2015: 31%2 
Employee resources – leadership
Maintain high retention rate for senior managers (Executive Directors and senior management teams) 96%
2015: 98%
Employee resources – skills & flexibility
Maintain high employee retention 78%
2015: 81%
Controlling our environmental impacts
Continue to measure and assess our carbon footprint3 and minimise wherever possible 108,613
2015: 111,173
(tonnes CO2eq)4
Supporting our communities
Continue to grow and measure our community investment annually, using London Benchmarking Group methodology £2.3m
(2015: £2.2m)

1 Material supplier refers to our top 250 (approximately) suppliers, prioritised each year by spend and relevance
2 2015 figure restated based on new definition of material supplier
3 Calculated using UK Government GHG conversion factors 2016
4 Figure restated based on updated data

Annual Report

Annual Report

Full Report 2016

(pdf, 7.8MB)
Annual Report

Strategic Report 2016

(pdf, 3.8MB)
Annual Report

Governance 2016

(pdf, 1.4MB)
Annual Report

Accounts 2016

(pdf, 760KB)