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  • #14689
    workhouse
    UK Column Annual Membership

    In 2016 Capita issued their first ever profit warning. By 2017 the first six months showed their net profit was down by 26% to £28 million. Their recent failures in the Recruiting contract for the MOD, where applicants were unable to sign up online have started to expose there problems even more. On January 15th this year at Defence Questions Nia Griffiths asked what steps the MOD were taking to sort out the Capita problems which had all but ceased recruitment during December.
    Today Capita have suffered a huge blow with the loss of a £722 million contract with Prudential. The contract was cut five years ahead and awarded to TATA.
    As one UK Column member commented on today’s show chat box, “This is by design”
    I agree and feel we are looking at a carefully and strategically placed line of dominoes.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    1 user thanked author for this post.
    #14703
    workhouse
    UK Column Annual Membership

    Nearly half a million UK firms facing ‘significant’ financial distress.
    Almost half a million UK businesses have started 2018 in significant financial distress, according to insolvency specialist Begbies Traynor.
    In its latest “red flag alert” Begbies said firms across all UK regions and sectors were affected as the new year got underway, as the whole economy felt the effects of higher inflation, rising interest rates, growing business uncertainty, and weaker consumer spending.
    READ MORE.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #14705
    workhouse
    UK Column Annual Membership

    Interserve fears: Key government contractor being watched days after Carillion collapse.
    INTERSERVE – a government-contracted construction group – is under watch by the UK Cabinet Office over financial health fears following the collapse of Carillion.
    Shares of Interserve, which employs 80,000 staff worldwide and has an annual turnover of around £3billon, fell by 15 per cent in early London trade on Wednesday.
    The outsourcing specialist has been under government surveillance since it issued a profit warning in September last year.
    A Government source said ministers are “very worried”.
    READ MORE.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    1 user thanked author for this post.
    #14706
    Steve Barnes
    Friend of the Column

    Surely they are to big to fail??? lol

    twitter: @plymouthweb

    3 users thanked author for this post.
    #14732
    hypatia
    UK Column Annual Membership

    I see that the Begbies Traynor report cited above is summarized by a Guardian journalist. I don’t have time to look for the original text, but I expect most people here would agree that the reasons provided for the 500,000 firms facing distress are somewhat fanciful.
    It’s the low interest rate policy that has weakened the economy. Interest rates have been so low for so long, while at the same time people have been encouraged to borrow beyond their means. We know that this has pushed property prices up to ridiculous levels, causing business rents to rocket, and along with that, business rates, which are calculated according to the rents achievable from the property. Exorbitant property prices, rents, and rates are the main overheads for most businesses and a major culprit in why businesses are failing. This in turn has driven business online and away from the high street, and that too is the result of policy and has nothing to do with Brexit. Add to that, the customers of these businesses have to spend a much higher proportion of their income on their own rent/mortgages/rates now- hence weaker consumer spending. It’s a vicious circle.
    But conversely, the Brexit vote has started a small rethink by EU nationals who would have previously bought properties here and created even more demand. Now property prices are beginning to stabilize, even fall in some areas, no doubt partially due to “uncertainty over Brexit”. This can only be a good thing. Property, both business and residential, should begin to become more affordable, all other things being equal (and of course they aren’t). Additionally, the falling pound has given a needed boost to exports.
    It’s also a pity that the small British businesses that supply the multinationals such as Carillion have been forced to wait up to four months to receive payment, thus causing distress. As Workhouse says, we are looking at a line of dominoes. Why have these conglomerates not been forced to pay their invoices on time, when there is relatively new legislation meant to prevent big firms delaying payments? I haven’t seen that point being mentioned papers such as The Guardian.
    As for inflation, I only see that coming through in food and housing prices, both the result of EU regulations or government and Bank of England policy. Wages haven’t been rising, oil prices have been stable for awhile, etc.
    I think this “red flag alert” is meant to suggest to you that the Brexit vote is somewhat to blame for the mess we are in. I’m not buying that.
    Are we going to see a strategic economic collapse – one long overdue – occur just before a forced second referendum?

    3 users thanked author for this post.
    #14734
    Martin Edwards
    UK Column Staff

    Are we going to see a strategic economic collapse – one long overdue – occur just before a forced second referendum?

    That’s certainly something to keep in mind. In respect of Carillion I have a ‘gut feeling’ that there is something lurking in the shadows behind the bare msm headlines. Time will tell.

    2 users thanked author for this post.
    #14994
    workhouse
    UK Column Annual Membership

    Capita shares have dropped 41% this morning down from 347p last night to 204p this morning after the new CEO Jonathon Lewis announced a big profits warning and suspended its dividend to shareholders.

    More on this breaking story here…

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #15040
    workhouse
    UK Column Annual Membership

    Another Domino?

    Without much acknowledgement in the MSM on Friday 26th January, the private contractor KFS (Key Forensic Services) collapsed, putting in jeopardy more than 2000 legal cases. The company was responsible for DNA testing, firearms examination and drug testing along with other forensic work.
    This work has been outsourced to private companies since the Tory closure of the State run Forensic Science Services in 2012.
    After the Home Office refused to save the firm, it now appears that the already overstretched Police budgets, will be forced to spend millions of pounds to keep the company going for another three months, in order to resolve current cases.

    Privatisation. The gift that just keeps on kicking taxpayers in the teeth…

    Sources…
    https://www.policeoracle.com/news/investigation/2018/Feb/01/Police-pay-out-millions-after-collapse-of-forensics-firm_96901.html
    https://www.thetimes.co.uk/article/police-foot-the-bill-after-collapse-of-forensics-firm-key-forensic-services-limited-bg5nbxkxt

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #15042
    workhouse
    UK Column Annual Membership

    Oh dear. Capita again,
    “The National Audit Office is investigating a backlog of 162,000 undelivered items of clinical correspondence on the watch of Capita’s £700m Primary Care Services contract.
    A clinical review to be completed by NHS England at the end of next month estimates it will cost £2.4m to review clinical correspondence for evidence of harm, including £300,000 that it will pay to GPs. No patient harm has been identified yet.”
    Read More.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #15396
    workhouse
    UK Column Annual Membership

    Exclusive Hard pressed outsourcing titan Capita wrestled with almost sxity separate outages at its data centres in the space of just half a year, The Register can exclusively reveal.

    An internal log of the problems dating between June and December 2017, seen by us, detailed the extent of the downtime, with as many as 44 incidents flagged as critical or “P1”.
    READ MORE

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #15399
    Steve Barnes
    Friend of the Column

    That’s really bad practice to have so many outages as-well as a massive IT design oversight. One thing any good data centre needs is good clean power and also redundancy, if both these fail then questions need to be asked. If contracts aren’t being met due to this surely after the first incident it would have made sense to upgrade their infrastructure as soon as possible, rather than let it keep re-occuring and putting people’s data at risk?

    twitter: @plymouthweb

    1 user thanked author for this post.
    #15410
    timefortruth
    UK Column Monthly Membership

    To be fair and add some balance as we don’t want to spread fake news like the mainstream, that 44 P1s needs some context. How big is their data centre. A P1 can be a service going down for a few minutes and have little impact in a wider sense. Also it could be that they were doing an upgrade which caused a chain reaction of P1s (most IT professionals would raise one P1 to make it look better though).

    1 user thanked author for this post.
    #17381
    workhouse
    UK Column Annual Membership

    Capita reports pre-tax LOSS of £515m for 2017
    Britain’s fave outsourcing badass Capita today reported a £513.7m pre-tax loss for 2017 and tapped investors for £701m in a rights issue that it will use to fund restructuring and toward paying down debts.

    The London Stock Exchange-listed organ revealed that sales for the calendar year fell 4.3 per cent to £4.2bn, and it made a loss from operations of £420m. A series of write-offs and the cost of disposals meant losses sunk further.
    READ MORE.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #17457
    workhouse
    UK Column Annual Membership

    The government has received a grilling over its exposure to 1,000 plus Capita contracts, following a pre-tax loss of £515m reported by the outsourcing giant yesterday.

    In an urgent question to the House of Commons on Tuesday, Lib Dem MP Vince Cable drew the inevitable comparison with collapsed outsourcing provider Carillion, and asked whether new contracts with Capita had been stopped.
    Read More.

    It is said that the one thing Satan cannot stand is mockery. The primal sin is pride and a swollen ego can handle intellectual assaults; what evil cannot handle is someone making fun of it. -
    Lewis Liberman.

    #17739
    purple hoax
    UK Column Lifetime Membership

    Amateur Moderator., prone to error, like everyone else. PM me with any issues.

    – Absolutely no personal attacks on other members.
    – Keep discussions on topic.
    – In any dispute, the forum moderator’s decision is final.

    1 user thanked author for this post.
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