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Capita defends coronavirus response and scraps guidance issued three weeks ago

Training, resourcing, contact centres for retail and leisure clients, consulting and the corporate travel agency are likely to be hit hard

Capita PLC -
Cash available to the company currently amounts to £450mln.

Capita PLC (LON:CPI) has defended its working practices against criticism is was classifying staff as essential workers to keep them coming into its offices.

 “The only people now working at a Capita site in the UK are key workers, as defined by the UK Government, or who are within an exceptional category of people providing other essential services – and for whom it remains not possible to work from home,” it said.

“We have made arrangements for as many of our colleagues as possible to work from home and have been increasing our capacity to support remote working every day,” the statement added.

Guidance for 2020 of modest organic growth and sustainable free cash flow of at least £160mln has been withdrawn despite being issued on 5 March.

Chief executive Jon Lewis, who alongside finance director Patrick Butcher has taken a 25% pay cut for six months from April, said it expects to see a sharp drop-off in its face-to-face businesses as the coronavirus crisis bites.

Training, resourcing, contact centres for retail and leisure clients, consulting and the corporate travel agency are likely to be hit hard, said the outsourcer.

Public sector, telecoms, utilities and financial services contracts will fare better while it is talking to the government about how it can help at 100 sites dealing with the virus outbreak.

This includes healthcare call centres and health testing centres

Cash available to the company currently amounts to £450mln.

Shares fell 6% to 35.3p.

Quick facts: Capita PLC

Price: 36.9744 GBX

LSE:CPI
Market: LSE
Market Cap: £6.17 m
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