Capita shares hit 15-year low after shock profits warning

Extracts from an article by Nick Fletcher, Columnist at The Guardian.

"Just two weeks after the collapse of Carillion, outsourcer Capita has shocked the market with a hefty profit warning, a £700m cash call on shareholders and the axing of its dividend.

The kitchen sink move by new chief executive Jonathan Lewis saw Capita’s shares collapse by 47.5%, wiping around £1.1bn off the company’s stock market value. Capita dominates the UK outsourcing market, and since January 2015 it has won contracts from 292 distinct public sector buyers." [...]

"Here’s further confirmation of Capita’s grip on the outsourcing market from Tussell:

Tussell tweet

Read the full article on The Guardian website.

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