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MARKET REPORT - CAPITA TEMPERS STRATEGY OF AGGRESSION

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Capita is backing down from its aggressive strategy of acquisitions aimed at strengthening its presence in certain ...
Capita is backing down from its aggressive strategy of acquisitions aimed at strengthening its presence in certain markets.

A statement from the firm said: 'While Capita will continue with its policy of making small, selective acquisitions, it is likely that our acquisition activity will be lower than the last three years.'

A spokeswoman for the firm said the announcement marks a change of direction and the statement was to 'let people know what to expect'.

Shareholders could be in for a windfall as the firm announced it would buy back 10% of its shares.

The statement said: '[We] will shortly be seeking shareholder consent to authorise a share buyback of up to 10%

of the issued share capital, 'with the group placing an increased focus on organic growth from its extensive client base.'

The latest comments contrast with previous statements from the

firm as it sought to gain a substantial share of the public sector outsourcing market.

Executive chair Rod Aldridge said: 'Our business remains in great shape with excellent forward visibility and strong free cash flow. We remain comfortable with analysts' consensus forecasts for 2002-03.'

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