Capita furloughs some workers; withdraws financial guidance

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Business process outsourcing company Capita withdrew and financial guidance and said it was embarking on cost saving measure as Covid-19 threatens to hurt demand.

Capita said it had more than £450m of liquidity as at 25 March and was taking 'all necessary measures to protect its financial position'.

The salaries of senior executives and board members had been cut, while some employees who could not work from home had been furloughed.

The company was currently exploring more than 100 situations to support the UK government's Covid-19 response with additional services.

This includeed contributing resource to healthcare call centres as well as being part of an initiative to set up health testing centres.

However, it said other parts of its business were expected to be more adversely impacted by Covid-19, including in face-to-face training, resourcing, contact centres for retail and leisure clients, consulting and its corporate travel agency.

'Our priority in these unprecedented and challenging times is to protect the well-being of all colleagues, while continuing to provide services to our clients and customers, and the communities in which we operate,' chief executive Jon Lewis said.

'We serve millions of people every day at Capita, for our private sector clients and through our work in partnership with the government which has intensified in recent days as we support efforts to combat the coronavirus outbreak.'

'We are committed to making sure we run our business as seamlessly as we can during this very difficult period.'

'We are taking some tough, but prudent, cost-cutting decisions to protect our financial position and ensure we remain resilient as a business for the long term.'

At 1:36pm: (LON:CPI) Capita PLC share price was -4.31p at 33.19p


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