Capita - Boring as ever!

Capita issued an upbeat IMS this morning - See - Capita encouraged by revenue growth - from Reuters. “Businesses across the group are trading well and the market for significant outsourcing opportunities remains buoyant”. In the first 4 months of 2008, Capita secured outsourcing contracts worth c£384m with a particularly strong performance from life and pensions, local government and insurance.

Bid pipeline stood at £2.5b on 29 February 2008. Capita faces no material rebids (greater than 1% of the previous year's revenue) until 2010.

As I've said before, Capita is one of those companies that could (indeed, I think, will) do even better in the current economic environment. As Capita told me, the way they could boost profits and therefore EPS would be to stop selling - they have their current revenue stream contracted for many years hence. What a fantastic position to be in - I'm sure it makes many readers green with envy!

Capita was up 3.5% at 687p on Tuesday on the news making them one of the better performers in Holway's Tech Portfolio in 2008 to date. Which actually translates into the fact that Capita is now back to where it started 2008 whereas most of the others are still suffering losses.