Outsourcing giant Capita is not doing that well and reported a £513.1 million loss for its full-year 2017.
To make matters worse, it has warned of further struggles as its restructuring drags on.
For the year ending 31 December 2017, Capita saw its revenue decline three percent year on year to £4.2 billion, while losses widened substantially from the £16.1 million deficit reported in 2016.
The outsourcer also announced a restructure of the business and a new round of fundraising.
Chief executive Jon Lewis said: “We have a fundamentally strong business with talented people, a blue-chip client base, some high technology and the ability to deliver value-adding services.
“However, the business needs to evolve. We need to simplify Capita by focusing on growth markets and to improve our cost competitiveness.
“We need to strengthen Capita and plan to invest up to £500m in our infrastructure, technology and people over the next three years. There is a lot to do, but I am confident that the plan is clear and prudent. Capita will become more predictable, have stronger operational discipline and consistently delight its clients.”
Underlying revenue in the outsourcer’s IT services unit increased by five percent, including a full-year contribution from Trustmarque, but Capita said that “good organic growth” in networking solutions and managed print services was offset by struggles in technology solutions and managed IT services.
Capita also warned of a profit decline in IT services this year, blaming “contract and volume attrition”.
Alongside the results, Capita announced a “transformation update” to “simplify and strengthen the business”, which will see it raise £701 million through a rights issue.
