Capita boss takes the rap
Exec steps down as profits fall 33%
THE boss of bungling outsourcing giants Capita has quit as the firm revealed another plunge in profits.
Chief executive Andy Parker is stepping down in the wake of a wave of criticism.
Capita, who run services for other firms and the Government, have been slammed over delays to a new congestion charge IT system for Transport for London.
They are also under fire for the way they collect the TV licence fee amid claims staff have used heavy-handed tactics and targeted vulnerable people who have not paid.
And there have been allegations linked to Capita’s Government contract to electronically tag prisoners.
Confirmation of Parker’s departure came as Capita are expected to be dumped from the FTSE 100 list of Britain’s biggest firms after a slump in their share price.
The firm’s stock, which has halved since last September, crashed another nine per cent yesterday, wiping £300million off their value.
Full-year profits for 2016 fell by a third to £74.8million on revenues that grew by just one per cent to £4.9billion.
Capita said that Parker, who pocketed nearly £2.7million in pay and perks in 2015, will leave later this year to “pursue the next phase of his career”.
He has been chief for three years and with the firm for 16.
The company have been stung by lower-than-expected sales from major contracts and a slowdown in new orders.
Chairman Sir Ian Powell insisted Parker had “made a significant contribution throughout his career at Capita”.
He added: “Andy will actively support the board in the process to identify a successor.”
Capita gave a September profit warning that Brexit was partly to blame for a trading slowdown, amid “delays in client decision making”.
Capita employ about 75,000 people in the UK, Europe, India and South Africa.