Issuing fines can be a profitable business

The firm announced pre-tax profits of �98.2m in 2002, a 36% rise over the previous year.

It is also benefiting from increased speculation that a smooth start in London will prompt a wave of similar schemes around the UK.

Capita's share price has been rising steadily since the charge was introduced on Monday and has added 13% since the close of business on Friday, 14 February.

Big business

The firm's executive chairman Rod Aldridge said its congestion charging technology was easily adaptable to other areas.

"We expect the whole area of transport management will be very big business for Capita," he added.

Capita said more than 35 major cities in the UK have expressed interest in the London scheme, and forecast that its revenues from the transport sector would double in 2003.

Mr Aldridge said transport management was a �4-5bn market opportunity for his firm.

The company has already secured almost all its projected revenues for the year ahead.

Capita operates call centres and checks number plates captured on camera in central London to ensure motorists have paid to enter the city.

In addition, Capita runs television license collection for the BBC and works for the Criminal Records Bureau.