Capita Capita: almost £1bn wiped off value of UK government contractor Grim state of outsourcing firm’s financial position emerges two weeks after collapse of Carillion Capita profits warning – as it happenedCapita runs London’s congestion charge scheme. Photograph: ReutersMore than £1bn was wiped off the stock market value of the government contractor Capita on Wednesday, sparking fears of job losses and forcing Downing Street to play down the threat of a collapse echoing the demise of rival Carillion. The prime minister’s spokesman insisted Capita was not in a similar position to Carillion, whose collapse earlier this month plunged thousands of workers and small businesses into uncertainty. Like Carillion, Capita counts the UK government among its major clients with contracts that include running London’s congestion charge scheme, tagging prisoners, operating a jobseeker’s allowance telephone line and administering the teachers’ pension scheme. “The Tories’ privatisation dogma risks lurching our public services from crisis to crisis, threatening jobs, taxpayers’ money and leaving people without the services they need,” said Jon Trickett, the shadow minister for the Cabinet Office.

Source: The Guardian January 31, 2018 09:23 UTC