Thursday 29 September 2016

*NEW RESEARCH* Investors rattled as Capita issues profit warning

lUnsurprisingly, we've had a lot of interest in Capita's first-ever profits warning (see Capita dives on first-ever profit warning). It's a real shock for the UK SITS market leader to not hit the numbers, and something that might put their long-held Holway Boring award at risk. 

Capita is facing a perfect storm of problem contracts (TfL and Co-Op Bank), underperforming businesses (reselling and recruitment), along with contract slippage and fierce competition. Oh, and of course, Brexit. This is all making for a really testing time for the UK SITS market leader. Indeed, Capita's shares are now off over a quarter from where they were before the announcement - an unprecedented one-day drop.

Following the management and investor call, we now have a good view on what are the real issues at play. Subscribers to TechMarketView's research services can read the full analysis in UKHotViewsExtra here.

Posted by John O'Brien at '15:28' - Tagged: warning   bps