Capita invites workers on to board after first-half dip

TROUBLED outsourcer Capita is to invite workers to apply for two seats on its board as it attempts to turn around its finances and image.

The unusual move was announced as chief executive Jon Lewis insisted he was making “good progress” despite a 60pc fall in profits in the first half of the year.

Investors were unconvinced and sent the shares tumbling 8.6pc. Capita, which collects TV licence fees for the BBC, is down nearly two thirds this year after profit warnings and a rights issue meant to repair its balance sheet.

The company’s struggles continued in the first half of the year, as underlying pre-tax profit dropped to £80.5m, from £195m in the same period of the previous year.

Mr Lewis, who took over the running of the company late last year, said higher investment in certain areas and a renegotiation of some major contracts had caused the drop.

He said: “This is a multi-year transformation and I’m not worried about what happens today or next week or next month, it’s about taking the right long-term measures.”

He reiterated that the company was on track to make £175m of cost savings by 2020, and had reduced its debt burden.

The company has struggled to get back on track after years of losses. It managed to raise £700m from investors earlier this year and is also selling parts of the business to raise cash.