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Capita reports losses over £500 million
Outsourcing company Capita has reported losses of more than £500 million as the popular local authority provider outlines plans to revive its indebted business.
The company has claimed it would raise £701 million through a rights issue to fund a reorganisation of the business, following substantial deficits in the last few years. Approximately half of company’s £4.2 billion income last year was accounted for by work in the public sector, including operating the London congestion charge and running an electronic tagging service for the Ministry of Justice.
Quick to distance the situation from the problem that befell Carillion, new chief executive Jonathan Lewis stressed that Capita has ‘£1 billion in liquidity, strong cash flow and a new strategy with investor support’.
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