Pre tax profits rose from £3.45 million to £4.41m on sales up 34% at £33.1m.
Chairman and chief executive Rod Aldridge said: 'We are currently looking at a significant volume of new business opportunities. The organic opportunities are enormous'.
Mr Aldridge said the most significant growth would come from council outsourcing, with less than 10% of contracts currently contracted out. Sales in Capita's outsourcing division expanded by 59% to £17.8m in last year.