Capita PLC (LON:CPI) saw its shares jump higher today as market rumours suggested that the under-pressure outsourcing group is in advanced talks about the sale of its recruitment division.
Sky News reported late yesterday that the FTSE 250-listed firm is in exclusive negotiations to sell the division – which handles recruitment activity in areas such as social care, IT, education and energy – to specialist turnaround investor, Endless.
READ: Capita plans asset sales as it cuts its profit forecast once again
Talks are understood to value Capita Specialist Recruitment at roughly £25mln, Sky News said, according to people close to the sale process.
In reaction to the rumour, Capita shares on the FTSE 100 index were ahead 3.4%, or 19p at 586p at lunchtime.
The disposal chatter follows other restructuring moves at the group, which delivered a series of profit warnings last year, with Capita revealing in December that it was seeking a buyer for its asset services division, which could fetch up to £600mln.
READ: Capita boss quits as outsourcer is demoted from FTSE 100 and reports drop in full year profits
In March, Capita reported a 33% drop in 2016 pre-tax profit to £74.8mln, impacted by weak revenues in both its recruitment and IT services businesses, plus a £50mln write-down of assets.
The group also announced that its chief executive Andy Parker was to step down, and lost its blue chip status in March as well.
Although Parker is due to remain in the post until this autumn, no replacement chief executive has yet been announced.
Capita is one of the largest private sector employers in UK, and has a global workforce of about 73,000.