February 21, 2017 / 7:19 AM / in 9 months

Capita writes down value of historic contracts, says trading in line

LONDON, Feb 21 (Reuters) - 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 but was otherwise trading in line with the guidance it gave in December.

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.

The assets date back to 2009, with the majority relating to the period between 2012 and 2014.

“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.

$1 = 0.8031 pounds Reporting by Kate Holton; Editing by Mark Potter

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