Less than a week on from our Capita (CPI) sell tip, the company has revealed another batch of nasties that have been lurking on its balance sheet.
IC TIP:
Sell
at
544p
The company is having to impair £50m of contract assets and is writing down £40m of accrued income (income previously reported but unlikely to be collected). These will be included as "non-underlying" items in full-year results due out on 2 March.
This is only likely to increase concern about what else is hidden on Capita's balance sheet, as well as raising questions about past revenue recognition. The fresh disappointment could also give potential buyers for the group's asset services business pause for thought.
