Main UK Central Government recruitment partner Capita states “delays in client decision-making” as one of the reasons for a poor performance in the second half of the year that forces the group to take actions and cut costs in its underperforming operations.
The slowdown affected IT and Recruitment divisions the most.
Shares in outsourcing giant Capita have tumbled by more than 30% after it published a profit warning partly linked to the Brexit vote, although lately there has been some evidence for recovery in group’s market value.
Capita also faces one-off costs of up to £25m related to delays on new IT systems under a Transport for London congestion-charging contract.
In addition it said it was in a contractual dispute with the Co-op Bank which it said posed a "risk of litigation".
Capita employs around 75,000 people, including 58,500 in the UK.
The group said it now forecasts full-year profits of £535m to £555m compared to a previous market expectation of £614m, however, this figure could be lower after including the cost of a potential restructuring.
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