Capita (CPI) provides Business Process Outsourcing (BPO) solutions and professional support services. Primarily based in the UK, it maintains a leading market share of 23% with a 50:50 revenue split (2010) between public and private clients. Throughout 2010, CPI made 12 acquisitions valued at GBP 301m to broaden operational capability and market reach. CPI’s bid pipeline was GBP 4.7bn (2010) which provides robust revenue visibility with an unused revolving credit facility of GBP 425m providing liquidity. In addition, CPI maintains strong Cash Flow (GBP 442m) used for acquisitions, share buy backs and dividends. CPI expects the recent UK government announcement of heavy spending cuts, in order to reduce the budget by GBP 6bn p.a. and local spending is to be cut by 7.1% p.a. to 2015, to benefit the BPO sector. This is expected to create additional outsourcing opportunities especially for companies that have high public sector exposure (Capita: 50% & Serco: 57%). There is a risk of margin pressure given the amount of budget cuts, but CPI expects to improve margins in 2011.