Capita’s turnaround struggle is reportedly increasing in intensity as the business is alleged to be in ‘crisis talks’ with PwC about how to overhaul its operations.
PwC is believed to be one of a number of advisers that Capita has been in discussions with, although none have officially been appointed according to This is Money.
The outsourcing specialist attempted a move to high-value technology and consulting services which has fallen flat, increasing its debt pile.
Most recently, it sold its Education Software Solutions business in a deal worth £400m (less than had been expected) and it has put a pause on the disposal of its property and events business due to the pandemic.
Analysts have warned that Capita’s disposals plan will not be enough – it has to invest in its own business and outpace the competition according to an analyst from Shore Capital markets.
The Capita share price is currently trading at 38p – significantly down from the 164p at the same point last year.