Will Capita follow carillion Down The pan?

[brassnecked]

Capita look to be in trouble, wonder where this will go, especially in view of the Capita/Equita/Ross 'n Robbers stitch up at many infested councils.

 

 

https://www.theguardian.com/business/2018/jan/31/shares-in-uk-government-contractor-capita-plunge-40-after-profit-warning

[dx100uk]

hope so!!

[brassnecked]

hope so!!

 

Yes definitely, they deserve to go down the pan, many will be happy if they do, they are corrosive to the public good with too many fingers in too many pies.

[ploddertom]

Couldn't happen to a better lot but would imagine there could be intervention this time,

[unclebulgaria67]

Couldn't happen to a better lot but would imagine there could be intervention this time,

 

Agree.

 

Outsourcing = passing on service delivery to a company that bids at an unprofitable level hoping to efficiency savings that never materialise. Government won't often re-open contracts to offer more money, unless they have no choice.

 

All of these issues are playing into the hands of Corbyn/labour who want to renationalise.

[brassnecked]

Agree.

 

Outsourcing = passing on service delivery to a company that bids at an unprofitable level hoping to efficiency savings that never materialise. Government won't often re-open contracts to offer more money, unless they have no choice.

 

All of these issues are playing into the hands of Corbyn/labour who want to renationalise.

Ohh Yes Corbyn will be salivating at the prospect, only issue for Corbyn is we have to be completely out of the EU for him to nationalise everything.

 

Even councils and that are not infested, along with RSLs are tied in to Capita for their Housing management software, I would think that possibly bits might be sold off, such as the Software division.

 

Too big to fail like the banks will be the argument but how they would justify rescuing Crapita whilst letting Carrillion fail will need much skulduggery and shenanigans.

 

TV Licensing might be hived off for example, but TV Licensing Blogspot are reporting on it here

 

http://tv-licensing.blogspot.co.uk/

[brassnecked]

They are too thinly spread

 

"Jonathan Lewis, who started as the company's chief executive two months ago, said "significant change" was required for the business.

"We are now too widely spread across multiple markets and services, making it more challenging to maintain a competitive advantage in every business and to deliver world class services to our clients every time," he said.

 

In the words of JC Denton the hero of Deus Ex " What a shame" (NOT)

[Bailiff Advice]

Yes definitely, they deserve to go down the pan.......

 

I am not so sure that I would agree.

 

The media are reporting that there are 70,000 staff whose jobs would be on the line. Furthermore, Capita appears to be one of a long list of large companies who have a staggering pension deficit (to the tune of over £380m).

[Bailiff Advice]

 

Even councils and that are not infested, along with RSLs are tied in to Capita for their Housing management software....

 

TV Licensing might be hived off for example,]

 

It is truly staggering the number of government contracts that Capita have been awarded The following are just a small proportion:

 

 

Runs government helplines for:

 

• The state pension

 

• Jobseeker's Allowance

 

• National Insurance number allocation

 

• Winter fuel allowance

 

 

Transport:

 

• Operates London congestion charge

 

• Manages wifi services for Transport for London, including free public access on London Underground

 

• Provides IT infrastructure services for UK air traffic control

 

• Planning for 10km of cycling routes in Salford

 

 

NHS/health:

 

• Provider of blood transfusion systems to some hospitals

 

• Manages communications between the NHS and its suppliers, vetting firms on data security standards

 

• Provides online payment systems to some NHS trusts

 

 

Pensions:

 

• Runs the teachers’ pensions scheme

 

• Works on behalf of the pensions regulator on the automatic enrolment of staff into company pension schemes

 

 

Other:

 

• Army recruitment

 

• Electronic tagging of offenders in England and Wales

 

• Operates the Gas Safe register for the Health and Safety Executive

 

• Carries out disability workplace assessments

 

• Operates the BBC licence fee

[brassnecked]

That is the conundrum BA, they have many good employees doing their best with probably minimal support. How do you protect their jobs when their management have messed up? They are over stretched and obviously under resourced, too many contracts at too low a price catches up with them.

 

They may well be split up, Parking Eye is likely to be sold, but Capita might be too big to be allowed to fail fail so will probably be bailed out like a delinquent bank, they might be snapped up by some American conglomerate, or the Legatum Institute backers or some other "Disaster capitalists" asset stripping Hedge Fund might "rescue" them

[MaxxPower]

Whilst Capita have issued a profit warning, unlike Carillion they're still actually making a profit.

It's just that instead of making £400million profit they've 'only' made £300million profit

 

Capita aren't in danger of going under anytime soon and aren't in any need of a bail out. They will however use this as an excuse to engage in cost cutting exercises.

[Bailiff Advice]

Parking Eye is likely to be sold......

 

Sir Greg Knight's Private Members Bill (entitled: Parking (Code of Practice) Bill), received its 2nd reading yesterday in the House of Commons. The support that he received was incredible and the Bill now passes to the Committee stage.

 

Parking Eye and all other private parking companies have cause to be very worried. The following is well worth reading:

 

https://www.theyworkforyou.com/debates/?id=2018-02-02a.1149.0&s=bailiff#g1160.0

[brassnecked]

Thanks for that BA hopefully the PPCs will be worried, think Parking Eye are probably the most litigious of the PPCs. As to Capita, this year's Profit Warning can turn into next year's loss. The implications are horrendous for councils.

[unclebulgaria67]

Thanks for that BA hopefully the PPCs will be worried, think Parking Eye are probably the most litigious of the PPCs. As to Capita, this year's Profit Warning can turn into next year's loss. The implications are horrendous for councils.

 

It is not the reduced profit that is so much the issue, but the level of borrowing they might have.

 

I bet Government have been carefully looking at Capitas accounts to see just how much they owe to creditors and the terms of any borrowing. If creditors start recalling loans because of Capitas financial situation they can go the same way as Carillion.

[Peterbard]

Brilliant informative thread BN and excellent onfo BA.

[unclebulgaria67]

https://www.theguardian.com/business/2018/feb/01/uk-officials-capita-discuss-financial-problems

 

Debts of over £1 billion and over £300 million pension shortfall.

 

Investors in these companies take a really good look at accounts and if they feel the risk is too much, they jump ship. Has this already started to happen ?

 

Are these big outsourcing companies too much of a risk to Government ? If you put too many eggs in one basket, then if there is a crash, you are left with a hell of a mess to sort out.

[Surfer01]

Why do the ministers referred to it as a ticket when it is an invoice for debt?

[brassnecked]

Why do the ministers referred to it as a ticket when it is an invoice for debt?

To hide the realities probably. The problem is that now the share price is falling as a result of the profit warning, Capita is in greater danger of being overstretched due to it's complexity that there is increasing probability iit will fail.

[brassnecked]

https://www.theguardian.com/business/2018/feb/01/uk-officials-capita-discuss-financial-problems

 

Debts of over £1 billion and over £300 million pension shortfall.

 

Investors in these companies take a really good look at accounts and if they feel the risk is too much, they jump ship. Has this already started to happen ?

 

Are these big outsourcing companies too much of a risk to Government ? If you put too many eggs in one basket, then if there is a crash, you are left with a hell of a mess to sort out.

Greater danger than is admitted imho UB. The pensions deficit is more of a problem than will be admitted.

[brassnecked]

Brilliant informative thread BN and excellent onfo BA.

Well we need to keep an eye on this one DB for multiple reasons due to what Capita owns or is responsible for.

[Ford]

It is truly staggering the number of government contracts that Capita have been awarded The following are just a small proportion:

 

 

[

NHS/health:

 

• Provider of blood transfusion systems to some hospitals

 

• Manages communications between the NHS and its suppliers, vetting firms on data security standards

 

• Provides online payment systems to some NHS trusts

 

 

and,

'In September 2015, Capita commenced the seven-year contract to provide primary care support services, including the management of GP pay and pensions, medical records, patient registration, and maintenance of its of new GPs'

https://www.theregister.co.uk/2018/02/02/nao_probes_capita_contract_clinical_correspondence_backlog/

https://www.theregister.co.uk/2017/12/22/nao_probing_capitas_sickly_700m_gp_support_gig/