Extracts from an article by Jack Torrance and Rhiannon Curry, business reporters for The Telegraph.
“The Cabinet Office was unable to confirm whether it had contingency plans in place for the failure of public sector contractor Capita after the company issued a shock profit warning, scrapped its dividend and announced plans to raise £700m in order to avoid collapse.
The company, which provides a variety of services to the public sector including running call centres for Jobseekers Allowance, administering teachers’ pensions and providing an electronic monitoring service for the Ministry of Justice, is estimated to have net debt of £1.1bn, and a pension deficit of around £380m.” […]
“According to public sector data provider Tussell, Capita is the biggest supplier of local government services in the country.”
Read the full article on The Telegraph Website.