Capita seeks £1bn funding as it unveils turnaround strategy

Outsourcer Capita plans to raise at least £1bn as part of a new strategy to turn the business around after it announced a loss of £513m in 2017.

The rights issue, in which investors will be offered new shares at 70p (a 34% discount), which had been expected to begin on Thursday [26 April], was brought forward to today.

The company said it also plans to raise more than £300m by selling non-core parts of its international business.

CEO Jonathan Lewis, who was brought on board in December, said the aim was simplify and integrate an unwieldy structure, which has more than 250 separate business units.

The company said in a statement: “Capita believes that under its new strategy, through introducing greater rigour in how it operates, together with re-focusing the business on its areas of strength, it will deliver enhanced performance through increased simplification, efficiency, standardisation and focus.

“We are open for business. It’s the end of a difficult chapter but there is a well-defined plan and it’s about executing on that plan,” added Lewis.

During the year, Capita disposed of all its recruitment division business – Capita Specialist Recruitment – consisting of Monarch Education, CER, Quality Teachers, 4FRONT, Team24 and Medicare First.

Capita’s recent history has been turbulent, with defence secretary Gavin Williamson describing it performance in managing the Army’s recruitment as “unacceptable”.

Meanwhile, according to the Telegraph, Capita is looking to roll out Capita Retain International, a recruitment and talent management programme used by professional services firms in the UK and Europe, into the US.

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