OUTSOURCING specialist Capita, which employs more than 1,000 people in the region, has returned record results for the 17th consecutive year.

Darlington's biggest employer said turnover had increased by 12 per cent to £1.44bn and pre-tax profits rose by 19 per cent to £177.2m for the year ending December 31.

The group, which provides Business Process Outsourcing (BPO) services from offices across the UK and Ireland, made 11 acquisitions last year and took on an extra 2,000 staff.

During the year, it secured 14 new and extended contracts with a value of £1.14bn.

Rod Aldridge, Capita Group executive, expects the firm to continue to grow at the same rate this year.

"Capita enters 2006 with confidence. Our operations are performing consistently well, our chosen markets are active and our sales prospects are exciting," he said.

"Moreover, the ingredients for a successful year are already in place. We believe our shareholders will be pleased by the results for 2006."

Last year the group spent £88m on acquisitions, which included BMI Health Services in July and BDML Connect Limited, in September, which delivers insurance services on behalf of Norwich Union, Admiral Insurance and RAC.

Capita works across eight markets, which include local and central government, education, transport, health, life and pensions, insurance and other private sector organisations, including financial services.

Mr Aldridge said UK's BPO market, which is valued at more than £94.8bn, continues to generate a wide range of opportunities to fuel Capita's future growth.

"Capita is very much a leader with a 26 per cent share of the market," he said.

"We are in good shape and in a good position. The results are good news for the company and for the staff. We are well funded and financially stable and therefore we are well placed to grow."

Capita employs more than 400 people at Lingfield Point, Darlington, working on behalf of Government winter fuel payments, NAAFI, the Charity Commission and the Connexions Card.

In nearby Mowden Hall, hundreds more staff handle teachers' pensions. The group has a further 300 staff working at sites across the North-East, including Newton Aycliffe, County Durham.