Under-pressure outsourcing group Capita Group PLC (LON:CPI) will lose around £40mln of income after writing-down the value of a number of historic contracts although it said that aside from that trading is in line with the guidance it gave in December.
The FTSE 100-listed firm, which downgraded its profit forecasts twice in three months at the end of 2016, said assets of around £50mln will be written off as a non-underlying charge.
It added that accrued income of around £40mln will also be written down as a charge.
The group said the date back to 2009, with the majority relating to the period between 2012 and 2014.
In a statement, Capita said: “These impairments will have no adverse impact on cash or future trading.”
It added: “Excluding the impact of accrued income written down, our guidance regarding trading performance for 2016 remains as last stated on 8 December 2016.”
But Shore Capital analyst Robin Speakman said: “We remain concerned over further write downs pertaining to the c£2.2bn of goodwill from acquisitions on Capita’s balance sheet and over implications for the group’s shareholder return strategy.”
He repeated a ‘sell’ rating on Capita.
In opening deals, Capita shares shed over 3%, or 16.9p at 497.1p.