Capita's shares fall as analysts react to drop in third quarter bid pipeline - UPDATE

12th Nov 2014 07:02

Capita's shares plunged on Wednesday after reporting a drop in its bid pipeline in its third quarter results. The bid pipeline stands at £4.1bn, compared to £5.7bn in July 2014, comprising 26 bids with 87% new business and 13% renewals."Following the recent lost probation market opportunity, Capita has taken the unusual step of updating its bid pipeline at Q3: £1.2bn of new bids have entered the pipeline since H1, but it is still down to £4.1bn from £5.7bn, leaving modest downside risk to FY15 forecasts," Liberum said, adding that the company's valuations metrics "feel relatively full".Nevertheless, Capita said it remains on track to achieve at least 8% organic growth for the full-year 2014.The business process management and outsourcing firm reported that it was confident in meeting market consensus boosted by its sales performance and acquisitions completed over the year and "steady" operating performance.Capita has secured £1.63bn new contracts to date this year with clients including The Co-operative Bank, Defence Infrastructure Organisation, Transport for London, John Lewis, Scottish Wide Area Network and BAE Systems."We continue to generate profitable growth by winning business with new and existing clients," the group said.In the year to date the company acquired 13 businesses for a total of £285m.The firm said the acquisitions would generate further future organic growth.Shares declined 6.33% to 1,050p at 10:49 .