Shares in Capita hit a 10-year low after profits alert
Shares in Capita have plunged to a 10-year low after the outsourcing firm warned over profits and moved to shore up its balance sheet by selling assets.
The FTSE 100 company said "near-term headwinds" would drag through into the first half of 2017 and added that underlying pre-tax profits, excluding restructuring costs, would reach £515m for the full-year, compared to previous forecasts of between £535m and £555m. Annual revenues are expected to come in at £4.8bn to December 2016.
The warning came as the firm said it would trim away fringe operations, selling the majority of Capita Asset Services and a "small number of other businesses".
Shares fell by more than 9% following the update, reaching levels last seen in July 2006.
Chief executive Andy Parker said that Capita had embarked on a cost-cutting strategy to prime the company for future growth.