Contains our shareholder, financial and trust administration and treasury services businesses.
| Financial Services |
2007
£m |
2006
£m |
| Turnover |
156.9 |
120.8 |
| Operating profit |
37.3 |
31.5 |
| Operating margin |
23.8% |
26.1% |
| Capex |
3.8 |
3.6 |
2007 developments
- Another excellent year of growth: Revenue growth was strong across all our operations – for instance Capita Registrars’ turnover grew by 22% to £61m. We processed 6,300 corporate action events with a combined value of £51bn, issued over 7m cheques and administered 130 IPOs (gaining 54% market share).
- Organic growth: Strong organic growth was driven by new products – such as NHS Membership and governance services, Tracing Solutions and SAYE administration – and the renewal of long term contracts with two of our largest share registration clients.
- Official Solicitor & Public Trustee: We successfully implemented our outsourcing contract.
- Combining Group skills: Our joined-up approach with Life & Pensions was a key differentiator in winning the Co-operative Insurance contract. Over 150 former Co-operative staff transferred to our Fund Administration operations.
- New start-up businesses: We opened operations in the Isle of Man (Registration), Guernsey (Fund Administration) and Dublin (Trustee Services).
- Acquisitions: During the year we acquired the Trust & Fiduciary operations of PwC Channel Islands and Global Fund Administration in Gibraltar.
- Offshore: As part of our continuing collaboration with offshore colleagues, we designed and implemented a new product specifically to be 100% delivered from our Indian operations.
- Growing market demand: Increasing complexity in design and delivery of products, such as the increasing use of derivatives in unit trusts, and increasing regulatory complexity – such as the Market Abuse Directive, 3rd EU Auto Money Laundering, MiFID, TCF initiatives and new Companies Act – continue to provide impetus for outsourcing in the industry.
2008 priorities
- Maintain high levels of regulatory compliance across the business and continue to develop solutions to help our customers comply with their regulatory obligations
- Develop and implement new and more advanced administration systems to reduce risk and increase efficiency via greater straight-through processing and automation
- Drive margin expansion by relocating jobs to lower-cost delivery areas in England and India and rationalising operational infrastructure
- Pursue further appropriate acquisitions, including selective investigation of some Western European jurisdictions.