Public sector recruiter Capita says it expects “strong growth” for 2012 and beyond as it records increased profits in its half-year report for the six months to 30 June.

The report reveals:

Highlights                              Half year   Half year     Change

                                              2011         2010          

Turnover                                  £1,400m      £1,361m       + 3%

Underlying operating profit*              £193.0m      £178.4m       + 8%

Underlying profit before tax*             £174.0m      £163.1m       + 7%

* excludes intangible amortisation and acquisition costs of £33.8m (H1 2010: £18.2m), the non-cash impact of mark to market movement on financial instruments of £1.2m credit (H1 2010: £12.5m charge).

The group says: “Against a backdrop of trading conditions which have continued to be challenging, the business has progressed in 2011 and we are now experiencing strong major contract sales performance and high levels of acquisition activity.

“We have secured contracts and renewals totalling £1.1bn in the first half of the year, more than double the value achieved in the first half of 2010. This reflects the increasingly strong demand for outsourcing across the public and private sectors after a two-year period of subdued sales activity.

“Following our recent contract wins, our bid pipeline has been rapidly replenished to its previous record level of £4.7bn of opportunities, with buoyant activity in the local government and life and pensions markets and growing activity across central government. After strong sales outcomes in the first half, we expect decisions on a number of bids in the bid pipeline in Q3 and Q4 this year.

“Our pipeline of sales prospects, visibility of revenue from long term contracts and acquisition activity position us well for steady progress in 2011 and underpin strong growth prospects for 2012 and beyond.”