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The next Carillion? Shares in outsourcing firm Capita plunge 30% after profit warning

London, City

  • Shares in outsourcing firm Capita plunge 30% on Wednesday morning.
  • Fall comes after the FTSE 250-listed firm issued a profit warning, announced plans for a rights issue, and suspended its dividend in a single announcement.
  • “Today, Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility,” the firm’s CEO Jonathan Lewis said in a surprisingly frank statement.
  • Capita, like Carillion, which collapsed earlier in January, has numerous government contracts.

LONDON — Capita, an outsourcing firm with a substantial involvement in government contracts, has seen its shares plunge almost 30% on Wednesday morning after the FTSE 250-listed read more >>>

Source:: BusinessInsider.Com