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UPDATE 1-Capita says on track for 2008, upbeat on next year

Tue Nov 18, 2008 3:33am EST

Stocks

   

* Confident 2008 results to be in line with expectations

* Expects to perform well in 2009, beyond

(Adds details, analyst comment, shares)

LONDON, Nov 18 (Reuters) - Britain's biggest back-office outsourcing company Capita Group Plc (CPI.L) said on Tuesday it was confident full-year results would be in line with expectations and that it expects to perform well in 2009.

The company, whose contracts include collecting payments from Britain's television licence holders and providing IT services to Birmingham city council, said it won contracts worth 1.21 billion pounds ($1.82 billion) in the 10 months to Oct. 31.

"With the contracts won this year, trading prospects across our businesses looking steady and a buoyant bid pipeline, we have the ingredients in place to perform well in 2009 and beyond," said the company in a trading statement.

Analysts are expecting full-year pretax profit of 265.9 million pounds, up from 228.7 million last year, according to a survey by Reuters Estimates.

In response, Seymour Pierce said it was leaving its full-year pretax profit estimate unchanged at 267.2 million pounds.

"Any short term weakness in public sector contracts should be offset by private sector growth," the broker said in a note.

"It is also worth noting that the largest area of growth for Capita so far this year has been its Life and Pensions outsourcing division."

Shares in Capita were up 0.1 percent at 623.5 pence by 0826 GMT and broadly in line with a 0.1 percent weaker FTSE 100 .FTSE. (Reporting by Victoria Bryan)



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