Capita set for admin sale as it sets aside £30m for Arch cru
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Capita has revealed that it is in active discussions to sell off part of admin arm Capita Financial Managers as it set aside £30m for potential losses arising from the Arch cru debacle.
As part of its full-year results statement published last week, Capita says its has undertaken a strategic review of CFM and decided that the balance bet-ween risk and reward in some of the ACD business does not serve its shareholders well.
Capita has also set aside £30m for potential losses following the suspension of Arch cru’s two open-ended investment companies in March 2009.
The £30m is for losses already incurred and expected to be incurred after the underlying assets in the Oeics plunged in value.
Last December, Capita published estimates for the net asset values of the underlying cells, which showed a loss of £140m between March 13, 2009, when the range was suspended, and September 30, 2009.
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