Council contracting giant Capita has announced a 20% rise in turnover in the six months to 30 June. Operating profits rose 18% in the first six months of the year, and the firm secured £626m in contracts. Chief executive of the Capita Group plc, Paul Pindar, said that local government had remained a strong area of growth for the firm, and had so far been insulated from a larger economic malaise. ‘The local authority market has been short of cash for the last ten years,' he said. However, this often meant councils were keen to ‘save money on back office services'. He paid tribute to the quality of management in local government, which he said had improved dramatically over the past five years and was often ‘stronger than in some parts of the financial markets'. turnover was up 20% to £1,182m operating profit rose 18% to £140.6m profits before tax hit £120.2m, up 16% £626m contracts secured in the first six months of the year 20% increase in half year dividends to 4.8p per share eight acquisitions were made, at a cost of £128.8m