2013 was an excellent year for Capita, the UK’s leading provider of customer and business process management (BPM). We secured major sales wins of £3.3bn, comprising 81% new business and 19% contract extensions, demonstrating the strength of both our service offering and the buoyant market for outsourcing in the UK and Ireland. We are seeing particularly high levels of activity in the private sector, across utilities, telecoms and financial services, and also in central government and the justice market.
In the full year 2013, underlying revenue on an ongoing basis, increased by 15% to £3,851m1 (2012: £3,352m). Underlying operating profit2 rose by 11% to £516.9m1 (2012: £466.7m) and underlying profit before taxation2 increased by 14% to £475m1 (2012: £417.0m). Underlying earnings per share2 grew by 14% to 59.4p1 (2012: 52.1p). We have increased our total dividend for the full year 2013 by 13% to 26.5p per share (2012: 23.5p).
The majority of our divisions traded well in 2013, with particularly good performance across our Customer Management & International, Workplace Services and Professional Services divisions. Our Property & Infrastructure and IT Services divisions are improving their performance with new management in place and market conditions becoming more favourable. Our Insurance & Benefits division has borne higher expenditure than anticipated on legacy IT systems. Additionally, as announced in November 2013, we completed the disposal of some of our Insurance Distribution operations and announced the planned closure of our SIP (Self Invested Pensions) administration business based in Salisbury.
During the year, we added further skills and strengthened our position in key target markets through the acquisition of several small to medium sized businesses. Throughout Capita’s history, this acquisition approach has enhanced our major sales propositions and fuelled future organic growth in new and existing sectors. During 2013, we acquired 13 companies for a total cost of £271m3, in areas including IT and software, debt management, analytics, gamification, change management and learning and development.
1 On an ongoing basis, 2013 numbers excluding the partial sale of our Insurance Distribution and planned SIP business closure, see note 2 of the preliminary statement. 2012 numbers have not been restated on this basis.
2 Adjusted for new pension standard IAS19 (R). Excludes non-underlying items detailed in note 3 administrative expenses, in the notes to the preliminary statement.
3 As previously announced and excludes investment in Axelos, Entrust and Fire Service College (public sector subsidiary partnerships).