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
Global Asbestos Awareness Week 2025
Highlighting the continuing threat to trades persons.
The context, schemes, standards, roles and relevance of the Building Safety Act.
Retrofit 25 – What's Stopping Us?
Exhibition Opens at The Building Centre.
Types of work to existing buildings
A simple circular economy wiki breakdown with further links.
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
The smart construction dashboard, as-built data and site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure Bill
An outline of the bill with a mix of reactions on potential impacts from IHBC, CIEEM, CIC, ACE and EIC.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.