Shares in outsourcing company Capita (LSE: CPI.L - news) climb 7.1 percent, topping Britain's blue-chip index, after it upgrades its organic growth rate following one of the biggest contract wins in its history.
"The market likes Capita's revenue momentum generally and the fact that it wins contracts - it persistently re-rates the stock off the back of contract flow," Investec (LSE: INVP.L - news) analyst Gideon Adler says.
Capita said on Tuesday that it had won a 1.2 billion pound ($1.83 billion)ten year contract with Telefonica's UK O2 mobile phone business to manage O2's customer services centres.
The company now expects organic revenue growth of at least 8 percent this year, up from guidance given in February of around 6 percent.
"I think the offset to that is the associated costs with implementing this contract mean that the underlying earnings for 2013 aren't going to move," Adler adds.
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($1 = 0.6570 British pounds)
Reuters messaging rm://sarah.young.thomsonreuters.com@reuters.net
