Capita rallies amid talk of interest in education business
Capita shares rallied on Wednesday, with traders pointing to speculation that there has been some interest in the outsourcer’s education software solutions business.
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According to This is Money, a number of companies have been eyeing the business. Capita announced in June that it was planning to dispose of the division, which is used by around 21,00 schools to manage administration.
At 1110 BST, the shares were up 10% at 31.58p, having fallen sharply on Tuesday after the release of the group's first-half results.
Capita swung to a reported pre-tax loss of £28.5m from a profit of £31.2m in the first half of last year, with revenue down 9% to £1.65bn, mainly due to 2019 contract losses and the impact of the Covid-19 crisis.
The company also said that based on expectations of a slow economic recovery throughout the next six months, revenue in the second half is expected to be flat to slightly down on the first.