Capita bids to ease accounts fears

CAPITA, the biggest of the stock market's public-private partnership specialists, has given a much-needed boost to the sector after squashing market rumours that it would be the latest company to announce accounting revisions.

In an unscheduled and forthright statement to the Stock Exchange two weeks before its half-year results, it said: 'As part of the interim results presentation, Capita will demonstrate that the company has adopted consistently more conservative accounting policies than those required by the relevant accounting standards.'

Capita was responding to an 80% share price collapse at Amey, which has taken a massive £70m downward revision to its accounts on the way it books profits early on public sector contracts.

This week, shares in Carillion dived after it announced a £12m similar hit. Capita said it has a 'high degree of confidence' of 'meeting or exceeding' market forecasts of a 30% rise in earnings per share to 10.2p, on pre-tax profits of £97m.