Proceeds from strategic sale will go towards reducing debt

Capita

Shares in support services group Capita edged up today after it announced the sale of Supplier Assessment Services to private equity group Warburg Pincus for 拢160m.

The division includes its Constructionline prequalification vetting service.

Capita said net proceeds from the sale would be used to paying down its debt, three and half years after buying the business. At the end of last year Capita鈥檚 net debt stood at 拢1.1bn.

In January this year, Capita issued a profit warning and later launched a 拢700m rights issue to help fund a strategic revamp.

In April, the group reported a loss last year of 拢513m on turnover of 拢4.2bn, but the firm denied it was heading in the same direction as failed contractor Carillion.

Capita chief executive Jon Lewis said of today鈥檚 sale: 鈥淭his transaction marks a further step in executing the strategy announced in April aimed at simplifying and strengthening the business to deliver future success and contributing to realising 拢300m from non-core disposals in 2018.鈥�

Capita鈥檚 shares were trading at 158p this morning, up 3.5%.

 

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