The Public Sector portfolio - Capita and Drax - Update 2

At the risk of being crude, a few years ago friends of mine that worked in the public sector had to deal with outsourcing specialists which included FTSE behemoth Capita.  Capita was not liked, the company was referred to as Crapita.  In that particular case, Crap..er Capita actually lost the local authority contract, but to look at the company now, you'd be forgiven for wondering whatever happened to austerity?  Capita has just announced some impressive results that are worth noting.

The "Public Sector" Portfolio

This is just an idea I want to run with.  A portfolio of FTSE350 companies that to some extent depend on Government contracts for their business.  It will be interesting to monitor performance over time to see what effect austerity and Government cuts have on the bottom line for these companies.

I've chosen 4 to follow;

Capita 

Capita is one of the UK's leading outsourcing specialists. Established in 1984, the company now counts both private and public sector businesses among its customers and is perhaps best known for its involvement in London’s congestion charging scheme.

Serco Group 

Global service company Serco manages research laboratories, local education authorities, leisure centres and prisons. Its business also includes the operation of London’s Docklands Light Railway and air traffic control towers in the Middle East and across America.

Carillion 

Provides expertise in commercial and industrial building, refurbishment, civil engineering, road and rail construction and maintenance, mechanical and electrical services, facilities management and PFI Solutions.

Qinetiq

QinetiQ is one of the world's leading defence technology and security companies, manufacturing and supplying products such as sensors for weapons, advanced robotic systems, port security products and advanced security for computer systems.

More to follow.


*Company description from DigitalLook.