April 24, 2018 / 1:01 PM / a month ago

UK minister downplays any comparison between Capita and Carillion

LONDON (Reuters) - Cabinet Office Minister Oliver Dowden downplayed similarities between debt-laden Capita (CPI.L) and the now-defunct outsourcing company Carillion, which collapsed in January.

An illuminated sign is seen in Capita offices in London, Britain, January 31, 2018. REUTERS/Toby Melville

Capita has a very different business model from Carillion, he told parliament on Tuesday, and measures similar to those taken by Capita might have prevented Carillion’s collapse.

    Outsourcers, he added, “should expect a decent, not an excessive, rate of return ... while ensuring savings for the tax payer.”

    Capita announced this week it would go ahead with a 701 million pound ($980 million) capital expansion to reboot its strategy and pay off debt.

    Reorting by Elisabeth O'Leary; editing by Stephen Addison

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