Aim: keep capital expenditure at or below 4% of revenue. This helps us focus investment on the opportunities that generate greatest shareholder value and avoid tying up too much capital in long term projects.

In 2006, we met this objective with net capital expenditure being 3.6% of annual revenue. This was achieved after significant investment in Capita’s advanced IT platforms supporting, in particular, our life & pensions business.

We believe capex at or below 4% is sustainable for the foreseeable future. There are currently no indications of significant capex requirements in our business forecasts or bid pipeline. But we would not rule out the possibility of exceeding 4% if we saw an exceptional opportunity to use Capita’s financial strength as a competitive advantage.