new-recommended-broker-banner new-recommended-broker-banner

Here’s Why Capita Share Price Crashed Over 20% on Tuesday

Updated: 18 Aug 2020

Shares of Capita PLC (LON: CPI) tumbled more than 20% on Tuesday after the firm said it recorded a £28.5 million loss for the first half of this year.

The UK-based company suffered “a significant hit” from the pandemic which is likely to deal a crushing blow to its finances in the next two years.

“This crisis has come in a pivotal year for Capita when we had expectations of beginning to generate revenue growth and sustainable cash flow,” Chief Executive Jon Lewis said.

“Instead, we have had to focus on managing our way through the crisis.”

Capita’s pre-tax loss this year comes after the outsourcer recorded a profit of £31.2 million in the same period a year ago. Adjusted revenue for the first half of the year plunged 9% to £1.65 billion, with projections for the second half of the year pointing towards similar levels.

Capita stock price crashes on plunging profit August 2020

Capita share price crashed more than 20% to hit a new 4-month low at 27.49.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .