Capita profits warning

[melthebell]

http://www.bbc.co.uk/news/business-42885211

 

Capita shares have plunged over 40% after the outsourcing firm warned on profits and announced a major shake-up.

 

New chief executive Jonathan Lewis said the company had become "too complex" and "driven by a short-term focus" and needed to change its approach.

 

Capita, which issued a series of profit warnings last year, has again cut its profit forecast and revealed plans to raise £700m by issuing new shares.

[Cyclone]

Again?

 

Didn't they have a crisis about 18 months ago which caused a share price crash.

 

---------- Post added 31-01-2018 at 12:26 ----------

 

Yep, crashed from 1000p/share to 600 in Oct 16.

Been in steady decline for at least the last 6 months though, now standing at only just over 200/share. That was a 1 day drop of 150 points though, from 350.

Clearly a company in trouble.

Edited January 31, 2018 by Cyclone

[rollwithit]

If those funds hadn't been outsourced, any surplus cash (considered profit in a private organisation) could have been plowed back into local/national government services.

 

Sheffield council is very dependant on Capital for its administration, IT and payroll services.

 

So what impact will this have for us as council tax payers?

[ENG601PM]

If those funds hadn't been outsourced, any surplus cash (considered profit in a private organisation) could have been plowed back into local/national government services.

 

Sheffield council is very dependant on Capital for its administration, IT and payroll services.

 

So what impact will this have for us as council tax payers?

 

That's because Capita do it more efficiently, therefore more cheaply and still make a profit which they pay tax on to provide money for council services.

[Mister M]

New chief executive Jonathan Lewis said the company had become "too complex"

 

That'll be why the CEO gets all that money

[Cyclone]

 

Sheffield council is very dependant on Capital for its administration, IT and payroll services.

 

So what impact will this have for us as council tax payers?

 

None at all at the moment, it's a profit warning, it hasn't gone bust.

 

---------- Post added 31-01-2018 at 13:06 ----------

 

That's because Capita do it more efficiently, therefore more cheaply and still make a profit which they pay tax on to provide money for council services.

 

So efficiently that they've issued a profit warning and the share price has dropped in the last 18 months by 80%.

[Fogey]

None at all at the moment, it's a profit warning, it hasn't gone bust.

 

---------- Post added 31-01-2018 at 13:06 ----------

 

 

So efficiently that they've issued a profit warning and the share price has dropped in the last 18 months by 80%.

 

I wonder what the black hole might be in the pension scheme.

[alchresearch]

That's because Capita do it more efficiently, therefore more cheaply and still make a profit which they pay tax on to provide money for council services.

 

Except when they roll out a new seasonal release of their IT products.

 

Then the poor customers find all the bugs and have to wait for fixes and hope data isn't lost.

 

They're not called Crapita for nothing.

[Cyclone]

I wonder what the black hole might be in the pension scheme.

 

I thought that this information might be available, but I can't find it.

[ENG601PM]

So efficiently that they've issued a profit warning and the share price has dropped in the last 18 months by 80%.

 

Don't make yourself look silly so soon. Capita still produced a third of a billion pounds in pre-tax profits. It's an issue because it's below expectations, dividends have been suspended, there's a not unusual rights issue planned, and Carillion is still on everyone's mind because even though Capita have an entirely different business they do lots of business with the public sector.

 

At this moment there is no suggestion of any kind of grand failure, unless you are looking in your wikipedia crystal ball and seeing the mists clearing. Come back in a week or two.