Capita puts Constructionline up for sale

Grant Prior 10 months ago
Share

Outsourcing giant Capita has put Constructionline up for sale.

Constructionline hosts popular Meet the Buyer events

In a trading update to the City this morning Capita confirmed it was undergoing a “transformation programme” in the wake of Carillion’s collapse.

Moves include a disposal of non-core assets, a £700m rights issue, cost cutting and a suspension of the dividend to shareholders as net debts hit £1.15bn and the company issued a profit warning for this year.

Chief Executive Officer Jonathan Lewis said: “Capita has underinvested in the business and there has been too much emphasis on acquisitions to drive growth.

“Today, Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility.”

“Capita needs to change its approach.

“An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity.

“We have identified a small number of quality businesses that do not fit with our core skills for which there will be better owners and a process to maximise value will commence shortly.”

Constructionline has been confirmed as one of the businesses to be off-loaded.

It provides procurement and supply chain management services to the industry.

Constructionline puts buyers in touch with suppliers and makes life easier for contractors with its standardised PQQ system.

It also hosts regular Meet the Buyer and Supplier Engagement events across the country.

Capita bought Constructionline from the government in 2015 for £35m.

Capita’s share price fell by more than 35% in early trading this morning.

Latest news

Wates rejigs construction senior management

Mark Tant promoted to new managing director role at construction division
7 hours ago

Alun Giffiths signs £70m final phase Worcester link road

Contractor to start work in March on A4440 Worcester Southern Link Road
6 hours ago

Interserve fights to quell stock market jitters

Share price rallies after plunging to all time low yesterday as group denies crisis
18 hours ago

Crossrail contractors facing overtime clawback

Bills questioned in race to get the job completed
10 hours ago

Heathrow names airport expansion delivery boss

KPMG's Emma-Jane Houghton joins in February and is in charge of procurement, contracts and costs
10 hours ago

British Land aims to start £385m London project duo

Developer looks to start major Shoreditch scheme and Paddington hotel within 12 months
10 hours ago

Sisk tipped for Sheffield Park Hill estate student scheme

Work to start early next year on plan to convert former housing block to student rooms
10 hours ago

East London raid saves modern slavery victims

Man arrested and six potential victims safeguarded
11 hours ago

Contractor closes down concrete products business

Mounting losses force Concrete Products (Kirkcaldy) to cease trading
1 day ago

Payroll company ceases trading blaming VAT changes

Sprite shuts down as tax change looms which could have huge impact on construction
1 day ago

HS2 unveils Crewe Link £1.6bn civils bid plan

HS2 Phase 2a to be split into two civils packages worth over £750m
1 day ago

Landsec grows London pipeline of work to £2bn

Developer confident about property market in the capital
1 day ago

Plan for Sheffield’s tallest building approved

32-storey private rental flats scheme gains outline planning
1 day ago

McCarthy & Stone plans more competitive tendering regime

Retirement homes specialist advances building cost reduction plan
1 day ago

£384m North London community scheme approved

Britannia Leisure scheme will be built next to Shoreditch Park in Hackney
1 day ago

Forrest sites closed as contractor tries to refinance business

Company denies administration rumours as talks with banks continue
2 days ago

Pre-construction work starts on £1bn Silvertown Tunnel

Specialist ITM Monitoring lands deal under pioneering Tfl framework
2 days ago

Wates appoints former Willmott Dixon finance chief

Philip Wainwright joins as new Chief Financial Officer
2 days ago

Spurs strike deal to use Wembley for whole season

Club agrees contingency plan if new stadium still not ready in the New Year
3 days ago

Galliford Try appoints new highways ops director

Three former Carillion directors now senior directors at highways business
2 days ago

Plan for £410m London Camden Lock estate rebuilds

Estate rebuilds and linked Barratt scheme will deliver 1,300 homes at Camden Goods Yard site
2 days ago

McAvoy wins Northumbria offsite hospital wing job

£15m order for new wing at Northumbria Specialist Emergency Care Hospital in Cramlington.
2 days ago

Strabag confirmed for potash mine tunnel fit-out

Yorkshire potash mine developer signs off final construction contract
2 days ago

Gravity probe could spell an end to hole digging on sites

Scientists get funding for new generation of sensors which could revolutionise ground investigation work
5 days ago

Amey wins £50m North West roads design

Amey Consulting secures Area 10 design deal adding to its maintenance contract
5 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
7 months ago

Construction new work output grows 2.8% in third quarter

Activity rebound driven by new private housing
5 days ago

McLaren gets green light to start Tottenham Hale revamp

Landlord Grainger acquires first phase of redevelopment scheme for £41m
5 days ago

Building boss fined after roof collapse on resi conversion

Lucky escape for three tilers after roof cave-in
5 days ago

Go-ahead for £100m Cardiff Interchange

22-storey flats, offices and bus station plan approved
5 days ago

Contractor services