Outsourcer Capita issues profit warning

Following the collapse of Carillion another large outsourcing company, Capita, has signalled it needs to reorganise its finances after issuing a profits warning and announcing plans to sell off non-core business and raise up to £700m in a rights issue, after which its share price fell 30%.

In an update to the stock exchange about its transformation, capital structure, funding and trading, turnaround specialist Jonathan Lewis, who joined as chief executive last December, said: ‘Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility.

‘We are now too widely spread across multiple markets and services, making it more challenging to maintain a competitive advantage in every business and to deliver world class services to our clients every time.