Capita costly to SMEs

Extracts from an article by the Sunday Express.

“More than 24,000 small to medium sized enterprises (SMEs) are exposed to Capita, the troubled outsourcing giant that last week drew comparisons with Carillion when it issued a profit warning.

According to its website, the firm spends £1.8 billion a year with 34,500 suppliers, of which 70 per cent are SMEs. Its shares lost nearly half of their value after the profit warning, which included plans to scrap its dividend and raise £700 million to bolster its balance sheet.

According to data from Tussell, which monitors public procurement, Capita has won tenders from 292 public sector organisations since January 2015, giving it a bigger customer base than any other outsourcing group, nearly double second-place Mitie, which has 151. KPMG is in third place with 130.”

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