Capita boss to quit amid profit fall

Tammy Harvey
March 3, 2017

The news came as pre-tax profits at the troubled company fell 33 per cent to £475.3m in the year to the end of December, although revenues inched up by one per cent, to £4.9bn.

Capita, the outsourcing firm, has announced its Chief Executive, Andy Parker, will be leaving the firm later this year once a replacement is found.

Net profit in 2016 fell to £36.9 million, down from £52.7 million the previous year.

Capita is also under investigation over the way it collects the TV licence fee on behalf of the BBC, after allegations that its collectors targeted vulnerable people, spurred on by an aggressive incentive scheme.

In a profit warning at the end of a year ago Capita said profits for the last 12 months would be around £515m.

As well as this the company is set to drop out of the UK's FTSE 100 list due to its share price falling drastically.

The company said its board was now beginning the hunt for a new chief executive, with Mr Parker staying in the role in order to "facilitate a smooth transition". 'We expect 2017 to be a transitional year for the business, as we complete our disposals, bed down the structural changes inside the business, and reposition Capita for a return to growth in 2018'.

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