Capita plc
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.
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’.
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.”
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Infrastructure that connect the physical and digital domains.
Harnessing robotics and AI in challenging environments
The key to nuclear decommissioning and fusion engineering.
BSRIA announces Lisa Ashworth as new CEO
Tasked with furthering BSRIA’s impressive growth ambitions.
Public buildings get half a million energy efficiency boost
£557 million to switch to cleaner heating and save on energy.
CIOB launches pre-election manifesto
Outlining potential future policies for the next government.
Grenfell Tower Inquiry announcement
Phase 2 hearings come to a close and the final report due in September.
Progress from Parts L, F and O: A whitepaper, one year on.
A replicated study to understand the opinion of practitioners.
ECA announces new president 2024
Electrical engineer and business leader Stuart Smith.
A distinct type of countryside that should be celebrated.
Should Part O be extended to existing buildings?
EAC brands heatwave adaptation a missed opportunity.
Definition of Statutory in workplace and facilities management
Established by IWFM, BESA, CIBSE and BSRIA.
Tackling the transition from traditional heating systems
59% lack the necessary information and confidence to switch.
The general election and the construction industry
As PM, Rishi Sunak announces July 4 date for an election.
Eco apprenticeships continue help grow green workforce
A year after being recognised at the King's coronation.
Permitted development rights for agricultural buildings
The changes coming into effect as of May 21, 2024.