Capita wins £500m MoD contract despite being 'high risk'

Capita has landed a new £500million contract from the Military of Defence (MoD) to run its UK military fire and rescue services – despite a report finding the outsourcer has the highest possible risk rating.

A financial assessment by Company Watch found that Capita scored 10 out of 10 for risk – the highest on the scale for financial distress – The Financial Times reports.

As part of the risk assessment, which was used by the MoD, Capita was awarded a ‘health score’ of just three out of 100. A score of 25 or less means a company is in a ‘warning area’ of vulnerability.

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The contract will affect around 2,000 staff at 78 defence fire stations worldwide.