This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Capita profit warning sees concern grow for top government contractors

01 February 2018

Following the profit warning issued by Capita yesterday, questions continue to be asked about the government's largest service providers and its procurement methods.

With the Capita story featured across the national media, continuing reference was made to the recent failure of Carillion.

According to This Is Money, Capita won nearly 200 public sector contracts worth £194m since it posted its previous profit warning in September 2016.

It is also featured on the government's preferred supplier list since January 2015 and therefore able to bid for contracts within a framework with an estimated value of £4.2bn.

Falling from a high of just over £13 in July 2015, Capita's share price was recorded at £2.60 following its recent profit warning.

Analysis of other large government service providers, such as Serco and Interserve, showed that these companies had also suffered significant drops in their share price.

While Serco had seen its share price fall from £6.27 in mid 2014 to 92p this week, Interserve had experienced similar misfortune with a drop of over £6 over the last four years, falling to £1.08 most recently.

Further commentary has discussed the companies that may gain new contracts due to the issues being experienced after the Carillion collapse.

Mitie was the favourite in the FM contract sector, while Balfour Beatty and Costain were thought to be set to gain new contracts in construction.

With further details continuing to emerge on the Carillion demise, an investigation has been announced to study why auditor KPMG did not raise concerns over the company's financial position and its lack of investment in employee pensions at a much earlier date.


Print this page | E-mail this page

MPU
PFM


MOST VIEWED...

View more articles
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

New company now running Interserve business

Following its entering into administration at the end of last week, the Interserve business has now been transferred to a new company owned by its lenders....
Article image

YLOTY2018 winner comments on his success on the night

This year's PFM Awards Young Leader of the Year winner, Kristian Trend, gives his reaction winning the award after receiving his trophy on 7 November at Th...
Article image

Conference programme confirmed by The Facilities Event

Speakers at The Facilities Event will include idea-generators, thinkers and FM experts, including three PFM Awards judges and the Overall Winner of the PFM...
Article image

Is ‘HOTELISATION’ the key to customer experience in property?

MIPIM is over for another year, and it was a whirlwind of innovation and new developments within the industry....
Article image

HS2 looks to contribute to district heating systems

Engineers working on the HS2 "super-hub" at Old Oak Common in north west London have stated that they can recover the heat from high-speed trains...