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Business & education services

Capita shares jump as Volkswagen extends customer services contract

The announcement comes in the wake of Capita unveiling a profit warning and plans for a £700mln rights issue in a January trading update.

Capita PLC (LON:CPI) shares leapt after saying Volkswagen Group UK has extended an 11-year customer service contract with the outsourcer by two years.

Volkswagen will continue to use Capita’s customer service support centre for its UK brands including Volkswagen, Audi, ŠKODA and SEAT.

The support centre offers customer care and technical services over the phone, on social media and online.

“The extension of our partnership demonstrates the continued success of our work with Volkswagen Group over many years,” said Mike Barnard, Capita’s executive director of the private sector.

“We look forward to continuing our successful relationship and delivering a consistent and comprehensive service to customers.”

Shares in Capita rose 5.2% to 139p in afternoon trading.

Capita and Volkswagen have been working together since 2006.

The announcement comes in the wake of Capita unveiling a profit warning and plans for a £700mln rights issue in a January trading update.

READ: Capita shares plunge as it warns on profits and announces £700mln rights issue

New chief executive Jonathan Lewis admitted that Capita was too widely spread across multiple markets and “significant change” was needed for the business.

The group is simplifying the business by selling off divisions, including the car park management arm ParkingEye and contractor registry Constructionline.

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