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Capita PLC Sees Strong Sales Performance

The share price of Capita (LSE: CPI), the international business process outsourcing and professional services company, is currently up just under 0.5% so far this morning, following the publication of a positive interim management statement for the year to date.  

The company reports “strong sales performance”, with 15 new major contract wins to a total of £2.9bn, from clients that include the Ministry of Justice, the Cabinet Office, Carphone Warehouse and Telefónica UK (O2). It also reports that its bid pipeline stands at £4.2bn, comprising 30 bids spread across the procurement process, 93% of which are new business and 7% renewals.

The company also says that there are no material contracts (those with forecast annual revenue in excess of 1% of 2012 revenue) due for rebid over the next five years.

In a separate news release the company announced that Paul Pindar is to leave Capita at the end of February 2014, after 26 years with the company, 14 of which were as chief executive. He will be succeeded by Andy Parker, the Group’s current Deputy Chief Executive and Joint COO.

Commenting on his departure, Pindar said:

After 26 years with the Company and approaching my 50th results presentation, I believe that now is the right time to hand the reins over to Andy. I will be leaving Capita with a strong management team and in excellent financial and operational shape for further success in 2014 and beyond. Andy will bring a wealth of experience to his new role as Chief Executive and I wish him and the whole Capita team all the very best in taking the Company forward.

 At its current 980p, Capita’s share price is up 28.5% so far in 2013 and 36% on this time last year.

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> Jon doesn't own shares in Capita.