Outsourcing giant sold loss-making businesses to Markerstudy in November
Capita lost tens of millions on the sale of its personal lines brokers, new figures reveal.
Capita sold its broking businesses – BDML, Sureterm, Lancaster and Delta – to Markerstudy in November and also closed its self invested pensions administration business.
Together the businesses made an operating loss of £14.4m on turnover of £45m.
According to figures released to the stock exchange, Capita lost £82.1m on the disposal and closure, including a £62.4m for impairment of goodwill and intangible assets.
Capita had predicted a cash loss of £35m at the time of the sale, but had not publicly predicted the total cost. The eventual cash cost of the sale and closure was £38.5m.
The sale “followed a detailed review which concluded that the route to recovery for these businesses would take a long time and we therefore acted swiftly to resolve this,” Capita said.
Capita’s insurance activities now consist of outsourced business process services and investment in start-up MGAs.