Capita unbowed by ILA scandal

Capita has reported strong results for 2001 and said it has not been damaged by the government's botched scheme - run by the IT services group - to provide individual learning accounts (ILAs) in the UK.

For the year ending 31 December 2001 Capita's pre-tax profits rose from £40m to £53m on revenues that more than doubled to £691.

The company has won a number of big contracts and is the leading contender to provide systems for proposed congestion charging on London roads. However, its reputation was blemished when it emerged an IT security shortcoming was behind the scrapping of the ILA initiative.

The FT today quotes Capita executive chairman Rod Aldridge as saying the ILA controversy has "categorically" not damaged his company.

The police and National Audit Office have been examining the government scheme, which provided millions of pounds in grants to anyone wanting to take courses, often in IT. Some fraudsters, it emerged, had been charging for places that went unfilled.