Woodford rates it, and holds in his Income fund, with the following comments on recent performance:
"The largest contribution to return came from Capita. The outsourcing company’s shares were boosted by a positive trading update, which underscored the work that its management team has been doing to get the company back on track. Also, towards the end of the month, Capita completed the sale of its asset services division for a much better price than the market had expected. This reduces both the pressure on its balance sheet and the fears that a rights issue will be needed. It will take time for the company to complete its turnaround, but we are encouraged that its management is making good progress. In the meantime, with an estimated yield of almost 5% for 2017, its valuation is still very attractive."
FD (holds Capita and Carillion in HYP)
