Capita puts Constructionline up for sale

Grant Prior 7 years ago
Share

Outsourcing giant Capita has put Constructionline up for sale.

Constructionline hosts popular Meet the Buyer events
Constructionline hosts popular Meet the Buyer events

In a trading update to the City this morning Capita confirmed it was undergoing a “transformation programme” in the wake of Carillion’s collapse.

Moves include a disposal of non-core assets, a £700m rights issue, cost cutting and a suspension of the dividend to shareholders as net debts hit £1.15bn and the company issued a profit warning for this year.

Chief Executive Officer Jonathan Lewis said: “Capita has underinvested in the business and there has been too much emphasis on acquisitions to drive growth.

“Today, Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility.”

“Capita needs to change its approach.

“An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity.

“We have identified a small number of quality businesses that do not fit with our core skills for which there will be better owners and a process to maximise value will commence shortly.”

Constructionline has been confirmed as one of the businesses to be off-loaded.

It provides procurement and supply chain management services to the industry.

Constructionline puts buyers in touch with suppliers and makes life easier for contractors with its standardised PQQ system.

It also hosts regular Meet the Buyer and Supplier Engagement events across the country.

Capita bought Constructionline from the government in 2015 for £35m.

Capita’s share price fell by more than 35% in early trading this morning.

Latest news

Nearly 40 solid wall insulation firms suspended

Botched work scandal rocks Government home insulation programme
7 hours ago

Manchester 18-storey top-heavy tower approved

Office scheme oversails 19th-century buildings at street level
8 hours ago

Travis Perkins fined £2m after timber falls from lorry killing driver

Father-of-three Jack Stevens, 28, died when plank went through his windscreen
8 hours ago

Plan approved for Oxford homes and life sciences quarter

Major enbling work package to start at Oxpens site
8 hours ago

Slow spending by Network Rail hits Renew profits

Infrastructure giant reports slow start to £45bn CP7 spending round
8 hours ago

Cartel watchdog drops probe into cement admixtures

Probe closed as no longer an 'administrative priority'
1 day ago

Bid race begins for £1bn concrete road replacement deal

National Highways invites bids for Legacy Concrete Roads Reconstruction framework
1 day ago

Groundworks specialist Kaybridge faces liquidation

£30m turnover contractor has been in business since 1972
1 day ago

“Cynical” legal bids to block infrastructure neutered

Government backs "builders over blockers" to speed up construction
1 day ago

Watkin Jones returns to trading profit

Strong ongoing demand for student room supports work pipeline
1 day ago

Social housing firm Fortem targets £300m turnover

Three-year plan to raise revenue by 50%
1 day ago

£150m Bristol student scheme approved

B&K tipped for 530-bed Temple Quarter scheme
1 day ago

Falco electric digger trial could lead to £6m fleet-swap

Utility contractor using new Takeuchi machines on UK Power Networks sites
1 day ago

Council pulls £274m road scheme over bats row

Ferrovial stood down after £56m spent on Norwich Western Link
2 days ago

£500m house building framework opens for bids

17 firms face fight to retain places on north west housing consortium list
2 days ago

Government faces £49bn estate maintenance backlog

Spending watchdog calls for urgent action to save crumbling public estate
2 days ago

Sellafield awards £95m industrial services framework

Kaeffer seals new access, asbestos and insulation deal
2 days ago

HG Construction names new MD

Greg Purkiss appointment completes corporate restructure
2 days ago

Plasterer in court for Covid loan fraud

Fraudster spent £50,000 Bounce Back loan on gambling, groceries and fantasy football
2 days ago

Industry’s best construction managers revealed

Full shortlist for CIOB Construction Manager of the Year award
3 days ago

Steeplejack dies after 60 metre church fall

Specialist contractor, which has ceased trading since accident, fined £60,000
2 days ago

Government to signal backing for London airports expansion

Chancellor growth plan speech to give nod to Heathrow, Gatwick and Luton plans
3 days ago

Hospital building plan extended by a decade – full list

All planned projects retained with fresh start dates for industry certainty
3 days ago

Kier launches £20m share buyback as debt cut

Steady first-half trading shrinks average month end debt to £38m from £137m
3 days ago

Plans unveiled for £365m Heathrow data centre

Distribution centre developer moves into data centre market
3 days ago

Plan for 6.5m sq ft Greater Manchester industrial zone

Russell LDP and Harworth to submit ambitious Northern Gateway plan this Spring
3 days ago

Building boss sold diggers still on HP

Court hears how building director sold rented machines to fund sports car and gambling habit
4 days ago

Wates names new hard FM chief

Jack Prady joins from Thermic Technical FM
4 days ago

Council steps-in at sites where developer failed

First Endeavour LLP went under while building new homes across Fife
4 days ago

Mace confirmed for £93m weather centre HQ

Work to start on weather scientist hub at University of Reading
4 days ago

Contractor services