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Outsourcing firm Capita is back in the black, reporting a £272.6m pre-tax profit for last year after a £513m loss the year before.
The firm, which operates the London congestion charge and runs an electronic tagging service for the Ministry of Justice, said its rights issue last year raised £1.1bn and strengthened its balance sheet.
Chief executive Jon Lewis said the firm has "fixed the basics and is firmly on track".
"Our transformation still has some way to go. But I am very pleased with our progress," he adds.
An Army recruitment drive has faced "significant problems" - including a website that cost three times its budget and was 52 months late, a National Audit Office report has found.
Outsourcing giant Capita was awarded the £495m contract for Army recruitment in 2012 - but has failed to hit soldier recruitment targets every year since.
Capita admitted it had "underestimated the complexity" of the project.
The Army said it had "put in place a plan to address the challenges".
London shares are trading higher.
The FTSE 100 is now 38.4 points or 0.5% up to 7,076.36, led by online gambling firm GVC Holdings, which has risen 3.2% to 801.5p.
The Ladbrokes Coral owner can now avoid paying shareholders £670m, due to the deadline reducing maximum bets on fixed odds betting terminals being moved forward to April 2019.
The FTSE 250 is 69 points or 0.4% ahead to 18,726.80.
Outsourcing firm Capita has climbed 6% to 113.9p, recovering from a 9% fall yesterday after being told off by the NHS for failing to send out cervical screening letters to about 45,000 women due to a computer error.