Capita to sell Asset Services

Outsourcing giant Capita has announced plans to sell off its Capita Asset Services business as it looks to streamline its operations.

The firm announced plans to sell the majority of the assets business in its pre-close trading statement for 2016, as well as “a small number of other businesses which no longer fit Capita's core business strategy”.

It said it is focusing on its three core objectives of developing market-leading proprietary solutions; continued focus on the UK market and gradual expansion in selected growth markets; and growing earnings per share.

"I am confident that the markets Capita addresses offer long-term structural growth,” said chief executive Andy Parker. We are however currently facing some near-term headwinds, which continue to make 2016 a challenging year and will affect trading performance in the first half of 2017.”

He added that selling Capital Asset Services would help create a “leaner Capita, focused on its core strengths and with a much stronger balance sheet”.