Capita’s Bad Day Points to Even Worse Days for May

Extracts from an article by Thomas Seal (media and telecoms reporter) and Flavia Krause-Jackson (U.K. government team leader) for Bloomberg.

“Britain’s Capita Plc—a little-known provider of services such as administering London’s traffic congestion-charge scheme and collecting the licence fee for state-broadcaster BBC—has had its worst day on the stock market in a quarter century.

The company’s woes point to even greater trouble for Prime Minister Theresa May’s shaky conservative government.” […]

“Capita was the biggest recipient of government contracts last year, according to researcher Tussell Ltd. Last summer, a consortium that included Carillion won contracts worth 1.4 billion pounds ($2 billion) to build sections of a new cross-country railway just days after the construction services company issued a profit warning. And Interserve Plc, which runs schools, roads, military bases and more, fell as much as 15 percent this month when the Financial Times reported that its balance sheet is under government scrutiny.”

Read the full article on the Bloomberg website.

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