Shares in Capita are volatile this morning, rising as much as 2 per cent, after the outsourcing group announced its chief executive will step down later this year.
The FTSE 100 group, which will be relegated to the FTSE 250 later this month, said Andy Parker would leave his post after three years at the helm ahead of what the company said will be a “transitional year for the business”.
Capita shares have since fallen back to rise 0.5 per cent at publication time, having briefly dipped to a 0.1 per cent decline on the day.
The group’s shares have fallen more than 40 per cent over the last 12 months to 567p, leading the company to be demoted to the FTSE 250 in the UK’s latest quarterly shake up of its equity indices.
Analysts at Shore Capital maintained their “sell” recommendation on the company, adding:
The asset and businesses sale underway remains critical to stability for the balance sheet, in our view, and for sustaining dividends.
For the present we remain cautious and note that the outlook statement is framed in this vein.