Capita chief's fate in balance as outsourcer exits FTSE 100
The fate of the boss of one of Britain's biggest outsourcing groups was in the balance on Wednesday night after a string of profit warnings led to its ejection from London's blue-chip share index.
Sky News has learnt that directors of Capita (LSE: CPI.L - news) , the company which manages the collection of the television licence fee and electric monitoring for the Ministry of Justice, were meeting with the future of Andy Parker, its chief executive, on the agenda.
Sources said that Mr Parker's departure could be announced as soon as Thursday morning, when Capita reports its annual results, although a person close to the company said he could yet be reprieved.
A number of big City shareholders in Capita have been demanding Mr Parker's scalp for several months, and have told the company's respected new chairman, Sir Ian Powell, that they want to see a change in leadership.
Capita's shares have sunk by more than 40% over the last 12 months, with fellow outsourcer including Mitie and Serco also experiencing tough trading conditions and the legacy of poor corporate decision-making.
A slowdown in spending by some public sector clients has also affected investor sentiment towards the sector.
Last week, Capita said it would take a £50m charge on a range of contracts but insisted it would have "no adverse impact on cash or future trading".
Mr Parker has run the company since 2014, having been on the board since 2011.
He said last autumn that he would put one of its most profitable divisions, Capita Asset Services, up for sale, and has hired Goldman Sachs (NYSE: GS-PB - news) to run the process.
The company was heavily criticised earlier this week over its behaviour when carrying out its TV Licensing contract, with Lord Hall, the BBC director-general, demanding urgent answers from Capita.
Capita declined to comment on Wednesday night.