(RTTNews) - Business process outsourcing and services company Capita Group Plc (CPI.L: News ) Wednesday said that it performed well in the second half of 2009, with robust trading across the group. The company also said that it is confident to deliver 2009 underlying profit growth in line with market expectations.

"We are encouraged by prospects across the Group, providing us with a strong platform for further growth in 2010 and beyond," Capita noted.

According to Capita, it is making progress in meeting its key financial targets for the year. Financial strength and stability continues to be an important differentiator with clients seeking sustainable long term partnerships, the company noted.

Capita also said that it has secured 15 major contracts worth a total of GBP 1 billion so far this year, and is seeing a good level of bidding activity across a broad cross section of its target markets spanning both the private and public sectors.

Further, the company said that less than 10% of its group revenues are generated by businesses that are potentially vulnerable to a weaker economy. This risk was factored into the company's 2009 business planning.

Capita also stated that its property consultancy, resourcing and share registration businesses are performing in line with expectations. Meanwhile, the company's collectives and investment trust administration business Capita Financial Managers, or CFM, continues to be adversely affected by the increased costs of IT and the sharply increasing obligations of regulatory compliance. CFM administers nearly 600 funds and has annual revenues of about GBP 50 million.
In the half-year statement, the company had referred to the work undergoing to resolve the suspension of 2 OEIC investment funds for which CFM is the authorized corporate director. These 2 funds were affected by high redemptions due to market illiquidity after the collapse of Lehman Brothers. The company said that CFM suspended dealing in the 2 funds on March 13 in conjunction with the delegated investment manager Arch Financial Products LLP, and with the agreement of the depositaries.

According to the company, CFM is working constructively with the Financial Services Authority, or FSA, Arch, the depositaries to the funds and other interested parties to resolve the suspension of the funds and to provide shareholders with further information regarding the current value of the funds and their future prospects.

Since announcing the half year results in July, the company has secured a further 5 contracts to deliver outsourced services. The company expects to finalize the contract with NHS Business Services Authority at the end of 2009 and is expected to be valued in excess of GBP 100 million over 7 years.

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