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Outsourcing and infrastructure firm Capita has seen its share price collapse in the wake of a profit warning just two weeks after Carillion went bust.

Capita鈥檚 share price has plunged by more than 40% today as it issued a profit warning and announced a major overhaul of the group which will see non-core businesses sold off.

Capita said that the Constructionline business it bought for 拢35m three years ago was one of the businesses up for sale.

The procurement provider was set up 20 years鈥� ago by the government before it was privatised in 2015.

The firm, which has issued a number of profit warnings in the past year, has slashed its projected 2018 profits, which are now predicted to be between 拢270m and 拢300m, in contrast to the 拢406m previously predicted by City analysts. It also unveiled its plan to raise 拢700m by issuing new shares.

The statement said: 鈥淭he divisional plans indicate that there is likely to be a significant negative impact upon profits from contract and volume attrition, the dropping out of one-off items including contract and supplier-related profits which were reported in 2017 and increases in some cost items, including depreciation and adoption of the General Data Protection Regulation.鈥�

News of Capita鈥檚 problems come a fortnight after construction and outsourcing giant Carillion was forced into compulsory liquidation after it failed to find a a way to refinance the company.

Carillion issued three profit warnings in the lead up to its collapse, the first in July last year.

Chief executive Jonathan Lewis (pictured), who took over the top job at Capita two months ago, said: 鈥淭oday, Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility.鈥�

The firm, which runs the London congestion charge, confirmed it had commenced a multi-year transformation programme, would deliver a strategic review of the company this year, a non-core disposal programme over next two years and the suspension of dividends until the company had free cash flow.

Capita鈥檚 property and infrastructure division, which mainly works in the public sector, represents about 7% of the total business, adding 拢639.6m to the company鈥檚 total underlying revenue of 拢4.898bn according to its 2016 annual report.

The division鈥檚 recent jobs include completing consultancy work for Barts Health NHS Trust and work for a residential and retail-led masterplan at Walthamstow Shopping Centre.