Skip to content

Here’s Why Capita Shares Are Trading at 24-Year Lows

Updated 28 Oct 2020
Capita logo

Shares of Capita PLC (LON: CPI) today plunged 7% as the company shares trade at prices last seen in September 1996 as the business outsourcing company grapples with lower revenues and mounting losses.

new-recommended-broker-banner

Recent news reports indicate that the group is looking to offload several of its subsidiaries in efforts to raise £200 million to plug the revenue gap and stay afloat.

The company recently sold its sold Eclipse, its legal software business, for £56.5 million and has put its education software subsidiary ESS on the market and has asked potential buyers to submit their bids.

Capita is also seeking buyers for GL Hearn, a property developer that it acquired in 2015 for £30 million. The property company has seen many top executives depart since last year, which many usually see as a sign of major troubles at the company.

The group reported an annual loss of £62 million last year following numerous profit warnings, which has seen its share price drop from an all-time high of 1200p in March 2000, to its current price of 23p.

Capita’s revenues fell 10% in H1 2020 due to the impact of the coronavirus pandemic and its shares are down 85.55% this year.

Capita share price

Tradingview chart of Capita share price 28102020

Capita shares today fell 7% to trade at 22.27p having dropped from yesterday’s closing price of 23.97p.

People who read this also read: