This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-37504619

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Outsourcing firm Capita's shares slump on profit warning Outsourcing firm Capita's shares slump on profit warning
(35 minutes later)
A profit warning from Capita, the company which operates the London congestion charge amongst other things, has prompted its shares to plunge 20%. Shares have plunged in Capita, the company which operates the London congestion charge among other things.
The outsourcing firm said this year's pre-tax profit would be between £535m and £555m, down from a previous estimate of £614m. The outsourcing firm said profit would be hit by one-off costs of up to £25m after it was late to implement new IT systems for the congestion charge.
It blamed a slowdown in trading in some businesses and one-off costs from the congestion charge contract. A slowdown in other parts of its business and delays in client decision-making also contributed.
"Continued delays in client decision making" also contributed, it said. Shares in Capita were down 28% at 678.5p in early trading, its worst day in four years.
Shares in Capita were down 24% at 724p in the first hour of trade. "The [TfL systems] have now gone live, the contract is performing well operationally and these costs will not recur next year," the company said its statement.
The company said it was taking immediate steps to reduce costs in its underperforming businesses. Capita also revealed that it was embroiled in a contractual dispute with the Co-op Bank, related to mortgage processing, and that there was a risk of litigation.
Capita employs 75,000 in the UK, Europe, India and South Africa. The company now expects pre-tax profit of between £535m and £555m, down from a previous estimate of £614m.
It said it was taking immediate steps to reduce costs in its underperforming businesses, which include its technology reselling division and specialist recruitment in the Workplace Services division.
As indicated earlier this year, the Asset Service division - which provides and services financial products - saw less activity following the EU referendum.
Capita employs 75,000 people in the UK, Europe, India and South Africa.