- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 03 Jan 2021
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.
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'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.
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.”
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
And CIOB's response.
Presidential update from CIAT's Eddie Weir PCIAT.
Rates freeze, NI cuts, full expensing; early election?
Could this be a remedy for condensation, damp or mould?
Unlocking a Healthier Tomorrow
Call for ministerial group and National Retrofit Delivery Plan.
The Great Transformation 1860–1920. Book review.
Including the devolved governments, CIOB, ECA, APM and IHBC.
AT awards small to medium size project category winner.
Formal and informal adaptive re-use or new use of buildings.
Temperatures hit new highs, yet world fails to cut emissions (again).
No longer enforcing certain waste transfer documentation.
Winners reactions during the event at the Park Plaza Hotel.
An exciting opportunity for stakeholders to collaborate.
Report from the BSRIA Briefing 2023, Cleaner Air, Better Tomorrow.