OUTSOURCING specialist Capita unveiled a 27 per cent jump in first half profits and said it was on course to drive turnover above £1bn in 2003.

The company, which runs London's jam-busting congestion charge scheme, said pre-tax profits increased to £51.1m from £40.2m a year earlier.

Reporting its results for the six months to June 30, Capita said there were "excellent" opportunities for further growth in both public and private sectors.

The firm has eight operations in the North-East, at Darlington, Newton Aycliffe and Newcastle as well as an office in York.

It employs 17,000 people nationwide.

Analysts had warned before the results that the absence of a major contract win could dent investor confidence and raise fears about growth prospects for 2004.

But Capita yesterday announced it had been chosen to supply contractor and temporary worker needs for a major aerospace organisation in a deal worth £40m over five years.

So far this year, Capita has won £286m of new contacts and has a bid pipeline of £2.8bn - the largest in its history.

Chairman Rod Aldridge said: "Capita's business model is simple, consistent, sustainable and proven. Our market place is substantial, active and capable of supporting long-term growth."