Capita Group Plc, the growing Birmingham public sector management and systems consultancy that last July obtained a full listing on the London Stock Exchange (CI No 1,723), yesterday announced proposals to pay UKP288,000 to buy out the contingent deferred consideration from the vendors of building service consultancy practice J E Greatorex & Partners, which Capita acquired in May 1990 (CI No 1,436). At the time of acquisition, it was agreed that Capita would pay a deferred consideration, which could in total amount to anything up to UKP4m, relating to Greatorex’s financial performance in the period to May 31, 1993. Now Capita says Greatorex has performed well and the consultancy wants to widen the role of certain directors within Greatorex to include broader activities across other parts of the group. Following shareholders’ approval, there will be no liabilities for deferred consideration within Capita. Capita managed another impressive performance in 1991, pre-tax profits rising 37% to UKP3.4m on turnover up 23% at UKP25m. Still no borrowings, the group boasts – following the share placing last year, cash balances at December 31 were UKP6.7m and net assets UKP8.4m. In the hard times we’re experiencing, Capita is also benefitting from the Catch 22 situation, where a company that is already doing well and is visibly financially secure gets all the business. During the year, the group has restructured its previously five divisions into just three facilities management, consultancy services and marketing services – to sharpen Capita’s focus and to simplify external marketing. The facilities management division was the big winner, turning in UKP1.96m profits, up 248% over the previous year. Telecom Capita Ltd, the group’s computer services activity, enjoyed a successful 12 months, winning new contracts at Companies House and Oxfordshire County Council. The division has recently signed an agreement with IBM UK Ltd under which Telecom Capita will become IBM’s chosen provider of Computer Facilities Management to Local Government. Capita has high hopes that this status will influence contracts it is currently negotiating. On January 2, a third arm to the facilities management business was launched, to provide property services. This activity, which will aim to secure long-term maintenance contracts, is to be chaired by John Brameld, also chairman of Greatorex. The consultancy services division returned profits of UKP1.03m, down 28% over the previous year. And the marketing services business saw profits fall 12% to UKP461,000. Last September, the last division disposed of Causeway Communications, its Belfast-based marketing consultancy as part of (its) review of activities in Northern Ireland. Chairman Rod Aldridge is optimistic that the market for its consultancy and marketing services is starting to pick up, and notes that the current year has started encouragingly.