Capita plc - Revision history

Designing Buildings at 11:33, 3 January 2021

2021-01-03T11:33:10Z

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Editor at 14:47, 31 January 2018

2018-01-31T14:47:34Z

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−	On 31 January 2018, the Capita plc suffered a 45% drop in their share price after it issued a surprise profit warning. The group’s net worth fell to £1.3 billion, only slightly more than their estimated debt of £1.15bn.	+	On 31 January 2018, the Capita plc suffered a 40% drop in their share price after it issued a surprise profit warning. The group’s net worth fell to £1.3 billion, only slightly more than their estimated debt of £1.15bn.

	Coming just a fortnight after the liquidation of Carillion, the latest shock down-turn in the fortunes of a major outsourcing company was accompanied by confirmation from Capita that it was undergoing a ‘transformation programme’ to try to avoid a similar fate.		Coming just a fortnight after the liquidation of Carillion, the latest shock down-turn in the fortunes of a major outsourcing company was accompanied by confirmation from Capita that it was undergoing a ‘transformation programme’ to try to avoid a similar fate.
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Designing Buildings at 11:32, 31 January 2018

2018-01-31T11:32:11Z

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−	On 31 January 2018, the ~~government contractor~~ Capita plc suffered a 45% drop in their share price ~~value~~ after it issued a surprise ~~profits~~ warning. The group’s net worth fell to £1.3 billion, only slightly more than their estimated debt of £1.15bn.	+	On 31 January 2018, the Capita plc suffered a 45% drop in their share price after it issued a surprise profit warning. The group’s net worth fell to £1.3 billion, only slightly more than their estimated debt of £1.15bn.

−	~~With it being~~ just a fortnight ~~since~~ the ~~collapse~~ of Carillion, the latest shock down-turn in the fortunes of a major outsourcing company accompanied confirmation from Capita that it was undergoing a ‘transformation programme’ to try ~~and prevent the company from going the same way~~.	+	Coming just a fortnight after the liquidation of Carillion, the latest shock down-turn in the fortunes of a major outsourcing company was accompanied by confirmation from Capita that it was undergoing a ‘transformation programme’ to try to avoid a similar fate.

−	With shares falling to just 190p each, ~~the~~ lowest level since January 2003, the group warned that underlying profits in 2018 were likely to be £270-300m; a long way from the £406m predicted by City analysts.	+	With shares falling to just 190p each, their lowest level since January 2003, the group warned that underlying profits in 2018 were likely to be £270-300m; a long way from the £406m predicted by City analysts.

−	Capita ~~is a major government contractor whose~~ contracts include ~~the~~ running of London’s congestion charge scheme, operating and promoting the Gas Safe scheme, ~~various~~ helplines and auto-enrolment of staff into workplace pension schemes. Capita employs around 70,000 people in the UK.	+	Capita's public sector contracts include; running London’s congestion charge scheme, operating and promoting the Gas Safe scheme, running a number of government helplines and the auto-enrolment of staff into workplace pension schemes. Capita employs around 70,000 people in the UK.

	CEO Jonathan Lewis unveiled a radical overhaul of Capita’s finances, saying that the group’s operations had become ‘too complex’ and had placed ‘too much emphasis on acquisitions to drive growth’.		CEO Jonathan Lewis unveiled a radical overhaul of Capita’s finances, saying that the group’s operations had become ‘too complex’ and had placed ‘too much emphasis on acquisitions to drive growth’.

−	~~In addition to~~ the suspension of shareholder dividend payments, ~~the overhaul includes~~ the disposal of non-core assets, cost-cutting and the sale of Constructionline, a provider of procurement and supply chain management services to the construction industry, which ~~was bought~~ from the government in 2015 for £35m.	+	The overhaul includes; a £700m rights issue, the suspension of shareholder dividend payments, the disposal of non-core assets, cost-cutting and the sale of Constructionline, a provider of procurement and supply chain management services to the construction industry, which Capita purchased from the government in 2015 for £35m.

	Capita Chief Executive Officer Jonathan Lewis said; “An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity. We have identified a small number of quality businesses that do not fit with our core skills for which there will be better owners and a process to maximise value will commence shortly.”		Capita Chief Executive Officer Jonathan Lewis said; “An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity. We have identified a small number of quality businesses that do not fit with our core skills for which there will be better owners and a process to maximise value will commence shortly.”

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2018-01-31T10:43:30Z

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[[File:Capita.jpg]]

On 31 January 2018, the government contractor Capita plc suffered a 45% drop in their share price value after it issued a surprise profits warning. The group’s net worth fell to £1.3 billion, only slightly more than their estimated debt of £1.15bn.

With it being just a fortnight since the collapse of Carillion, the latest shock down-turn in the fortunes of a major outsourcing company accompanied confirmation from Capita that it was undergoing a ‘transformation programme’ to try and prevent the company from going the same way.

With shares falling to just 190p each, the lowest level since January 2003, the group warned that underlying profits in 2018 were likely to be £270-300m; a long way from the £406m predicted by City analysts.

Capita is a major government contractor whose contracts include the running of London’s congestion charge scheme, operating and promoting the Gas Safe scheme, various helplines and auto-enrolment of staff into workplace pension schemes. Capita employs around 70,000 people in the UK.

CEO Jonathan Lewis unveiled a radical overhaul of Capita’s finances, saying that the group’s operations had become ‘too complex’ and had placed ‘too much emphasis on acquisitions to drive growth’.

In addition to the suspension of shareholder dividend payments, the overhaul includes the disposal of non-core assets, cost-cutting and the sale of Constructionline, a provider of procurement and supply chain management services to the construction industry, which was bought from the government in 2015 for £35m.

Capita Chief Executive Officer Jonathan Lewis said; “An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity. We have identified a small number of quality businesses that do not fit with our core skills for which there will be better owners and a process to maximise value will commence shortly.”

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Carillion.
* Constructionline.
* Insolvency.
* Liquidation.
* PFI.
* Project bank accounts.
* Supply chain.

[[Category:Organisations]] [[Category:News]]