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CAPITA SHARES RISE ON NEWS OF GOVERNMENT CONTRACTS

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Shares in Capita, the support services group, rose 17% yesterday in response to an upbeat trading statement and its...
Shares in Capita, the support services group, rose 17% yesterday in response to an upbeat trading statement and its appointment as preferred supplier for two new government contracts worth£60m, reports The Financial Times (p24).

The terms of the contracts with the Department for Education and Employment and the Benefits Agency are currently being negotiated but are together expected to generate£1m of profits a year for five years.

The education contract would strengthen Capita's dominant market position in education support services, which already accounts for about 17% of the£327m turnover.

Rod Aldridge, executive chairman, said he was 'very positive' about the group's performance. 'The high forward visibility of our earnings and the opportunities that are emerging give considerable confidence that we will continue our growth into the future,' he said.
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