Capita Group PLC (LON:CPI) has appointed former Amec Foster Wheeler PLC (LON:AMFW) boss Jon Lewis as its chief executive to lead the turnaround of the struggling outsourcer.
Lewis has served as chief executive of Amec for the past year and has left following the completion of the UK oil services company's takeover by John Wood Group PLC (LON:WG), which was announced yesterday. He also spent 20 years at oilfield services firm Halliburton, including heading the Landmark software business.
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Lewis will join Capita on December 1, allowing Nick Greatorex to resume his position as finance director.
Greatorex, who stepped in following the departure of Andy Parker in March, will continue to serve as interim chief executive until November 30.
Parker left the company in the middle of its restructuring as it reported a sharp decline in annual profit that was well below the group’s expectations despite two profit warnings.
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Lewis determined to turn around business
“There is work to do to complete the transformation of Capita and I am determined to make the business and its value propositions stronger for our employees, customers and shareholders, and return this great company to growth,” Lewis said.
Capita chairman Ian Powell said Lewis has a strong track record of growing high value, technology-enabled services businesses through securing and developing major client relationships in both the private and public sectors.
“Jon is a proven, successful business leader with the ideal blend of experience to lead the transformation of Capita,” Powell said.
Shares in Capita rose 3.47% to 581.50p in morning trading.
Lewis a positive addition to Capita, says UBS
UBS said while the CEO sucession has taken a long time, it is a positive that Lewis will start in December. The bank believes his experience with turnarounds and long-term customer contracts will be helpful to Capita.
"That said, after a long career in oil & gas the move to Capita's BPO (business process outsourcing) markets across many customer segments will be a new step," UBS said.
"However Ian Powell, Capita's chairman, has highlighted the 10 years Lewis spent in and running the 'Landmark' software business, where clearly there is more overlap with Capita's activities."
UBS added that market conditions remain challenging, and while a restructuring is underway it expects the new CEO to come back with a reinvigorated strategy.
"It remains to be seen if a strategic review can be completed by the fiscal year 2017 results in March 2018, but previous guidance has been for a return to growth from fiscal year 2018."