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

[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.

[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)

[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

[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.

[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.