LONDON Feb 21 Outsourcing group Capita,
under pressure from a slowdown in demand from customers, said it
had written off the value of a number of historic contracts,
sending its shares down over 4 percent.
Capita, which downgraded profit forecasts twice in three
months at the end of 2016, said on Tuesday assets amounting to
around 50 million pounds ($62 million) would be written off as a
non-underlying charge. Accrued income of around 40 million
pounds will also be written down as a charge.
Shares in the group, which said it was otherwise trading in
line with the guidance it gave in December, were down 21 pence
at 491 pence at 0806 GMT.
The stock has fallen 63 percent since July 2015.
"Excluding the impact of accrued income written down, our
guidance regarding trading performance for 2016 remains as last
stated on 8 December 2016," it said.
The assets, which were reviewed as part of the year-end
close process, date back to 2009, with the majority relating to
the period between 2012 and 2014.
Capita, which provides IT-enabled business services to banks
and investors, the national health service, retailers and
utilities, has been forced to cut costs and dispose of assets to
make its debt more manageable as earnings come under pressure.
The group has been hit by lower than expected revenues
coming through from its major contracts while Britain's vote to
leave the European Union has also resulted in a slowdown in new
orders coming through.
($1 = 0.8031 pounds)
(Reporting by Kate Holton; Editing by Mark Potter and James