Capita

Ticker CPI

Today's data summary

Market open
% change
+2.95%
Price Pence
142.90
Change
+4.10
As of 16:26 21 Aug 2018
Market cap. Pound sterling
2,384.13 million
As of 16:26 21 Aug 2018

Latest updates

Big government deal for Capita in limbo

Ministry of Defence
PA

Shares in Capita are down more than 2%.

There was bad news for outsourcing firm when the Ministry of Defence suspended a contract for the provision of fire fighting services on military sites.

Capita appeared to have won that contract in June, beating rival Serco.

But Serco has taken legal action and the MoD is suspending the contract until the legal challenge is sorted out.

"Capita remains fully committed to the future delivery of the Defence Fire and Rescue Project and will continue to support the MoD on this matter," Capita said in a statement.

The fire contract was the first big deal to be awarded by the government since the collapse of Carillion, which was an important supplier to the state and was also involved in building roads and hospitals.

Right move?

Investors seem more than content with Capita's rights issue and restructuring announced this morning. The shares are up 11.3%. The firm's two biggest shareholders - Woodford with a 10% stake and Invesco with 9% - are reportedly backing the cash call.

Wrong call

Hedge funds are big losers from this morning's Capita rights issue and restructuring.

The Times report's that the outsourcing company is among the top 20 most shorted stocks on the London share market, with some big funds adding to their positions against Capita in recent days.

Shorting is a bet that a share price will fall. Capita's shares are currently up 10%.