 announced his departure on Thursday, after profits fell over 30 percent in the course of 2016.){kind=link}
The boss of outsourcing giant Capita (LON:CPI) announced his departure on Thursday, after profits fell over 30 percent in the course of 2016.
CEO Andy Parker called the performance “disappointing”, with contract delays and failure to win new contracts pushing both net profit and operating profit downwards.
Net profit in 2016 fell to £36.9 million, down from £52.7 million the previous year. Revenue increased by 1 percent to £4.91 billion, but reported profit fell 33 percent to £74.8 million.
Parker announced his resignation in conjunction with the group’s full year results on Thursday, after three years at the helm. His departure comes after the BBC announced an investigation into the methods in which Capita collects TV license fees, after it was reported that the company targeted the vulnerable.
In a statement, Parker called 2016 “a challenging year”, but added that he expected “target markets continue to offer long-term structural growth”.
“We expect 2017 to be a transitional year for the business, as we complete our disposals, bed down the structural changes inside the business, and re-position Capita for a return to growth in 2018.”
Capita also announced a 30 percent drop in earnings per share to 56.67p, just days after the company fell out of the FTSE 100.