Extracts from an article by Joel Hills, Business Editor of ITV News.
“An unexpected profits warning, and a slump in the share price at another big outsourcing company.
Capita is doing a passable impression of Carillion - but while Capita is in trouble, it’s not dead yet.
Capita’s new chief executive, Jonathan Lewis, has suspended the dividend and is tapping (long-suffering) shareholders for £700m to pay alarmingly high levels of debt.
Part of the “significant change” that is promised to turn Capita around will include cost cuts and out-sourcing.” […]
“According to Tussell, which collects data on public tenders and government contracts, Capita has won more business from HM Government since 2015 than any other private sector supplier. £238m of those contacts are set to expire in 2018.”
Read the full article on the ITV News website.