Capita has reported good financial results for the first half of 2015, underpinned by strong sales and operational performance.
Underlying revenue1 increased by 10% to £2,283m (H1 20142: £2,071m), including 3% organic growth3, net of attrition, and 7% acquisition growth. Underlying operating profit1 increased by 11% to £288.8m (H1 20142: £260.2m) and underlying profit before tax1 rose by 11% to £264.9m (H1 20142: £238.0m). Underlying earnings per share1 rose by 11% to 32.0p (H1 20142: 28.9p) and we increased our dividend for the half year by 9% to 10.5p per share (H1 2014: 9.6p).
The majority of our divisions performed well in the first half of 2015, with strong growth particularly in our Asset Services and Digital & Software Solutions divisions and a pleasing initial contribution from Capita Europe. Our Workplace Services, Customer Management and Local Government, Health & Property divisions also delivered good growth.
To date this year, we have secured 10 major contracts with an aggregate value of £1.6bn (H1 2014: £1.3bn), comprising 76% new business and 24% renewed contracts and representing a win rate of above 2 in 3 for the Group by value. These included contracts with Defra, NHS England and Central London Community Health NHS Trust (CLCH) and we were also approved by NHS England to join the Lead Provider Framework for Commissioning Support Services, all strategically significant contract wins and frameworks in the science and health sectors. The bid pipeline currently stands at £5.4bn (February 2015: £5.1bn), comprised of 30 bids with a weighted average contract length of 8 years, including 97% new business and 3% renewals and extensions.
We continued to make acquisitions in the first half of 2015 to build capability in existing markets, enter new markets and enhance our future organic growth potential. We invested a total of £279m, excluding deferred and contingent considerations, in acquiring 11 businesses in the period, including avocis, which provides a key platform for Capita Europe, and Vertex Mortgage Services, the completion of which is subject to approval by the Financial Conduct Authority.
1 Excludes non-underlying items being: intangible amortisation, acquisition expenses, net contingent consideration movements, specific non-recurring items, non-cash impact of mark-to-market finance costs and businesses exited
2 H1 2014 includes Occupational Health disposed in H2 2014
3 Excludes the Occupational Health disposal in 2014 and the organic growth within the non-core health businesses exited in 2015