Shares in support services firm Capita have risen after it defended its "robust" book-keeping practices and sought to distance itself from a wave of accounting scandals that have alarmed investors.

Capita has been hit by rumours of questionable accounting as investors have stepped up their scrutiny of corporate standards in the wake of scandals at US giants WorldCom and Enron.

Capita said it would maintain its "cautious and prudent" approach.

The firm said it would show it was meeting, and even exceeding, book-keeping best practice when publishes its half-year financial results on 25 July.

"Capita will demonstrate that it has consistently adopted more conservative accounting policies than those required by the relevant accounting standards," the firm said.

Wobbly stocks

The briefing helped revive the price of shares in the support services sector, which has come under particular pressure during this summer's stock market slide. Sector peers Amey and Serco also saw their shares rise.

The firms had ranked among the better performers on London's stock market, recovering strongly from the falls after the 11 September attacks.

With their focus on public sector contracts, the support services firms had been seen as a safe haven in times of global economic downturn.

But, as attention has focused on accounting standards, concerns have been raised in particular about how support services firms treat the large costs run up bidding for public private partnership contracts, such as hospital construction projects.

Amey, a partner in the consortium selected to upgrade the London Underground, said in March it would include the costs when they occurred, rather than deferring them until it was named preferred bidder.

And on Thursday Carillion, which rebuilt the GCHQ intelligence centre in Cheltenham, said its revision to the treatment of bidding costs would lower operating profits by �6m.

City reaction

Capita added in Friday's statement that underlying profits for the whole of 2002 would grow by at least the 30% predicted by analysts.

"The board confirms that it has a high degree of confidence that its track record of meeting or exceeding market forecasts will continue," the document said.

Capita shares stood 3.9% higher in afternoon trade, with Amey stock up 7.4% and Serco shares 3.3% higher.

Carillion shares were 2p lower at 140p,