Outsourcing firm Capita’s shares have fallen by a third following a profit warning and announcement of a major shake-up.
The group’s new chief executive, Jonathan Lewis, said in a statement that the firm had become “too complex” and “too widely spread across multiple markets and services”.
He added that the company had been “driven by a short-term focus” and needed to change its approach.
Capita issued several profit warnings last year and has cut its profit forecast and outlined plans to raise £700m through issuing new shares.
Lewis added that he had appointed a new chief transformation officer and formed a new executive committee to drive changes to the company.
The initial priority is to “strengthen the balance sheet” and a wide-ranging overhaul has been outlined, including a cost-cutting plan and a programme to sell off unprofitable businesses.
The company is expecting full-year profits of between £270-300m, which falls short of analyst expectations of £400m. It will not pay a dividend to shareholders this year.
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