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Capita delivers fresh blow to Woodford and Barnett

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Capita delivers fresh blow to Woodford and Barnett

Shares in Capita (CPI) have slumped after the outsourcing company delivered an underwhelming outlook for the rest of the year alongside disappointing half-year results.

The shares dropped 10.5% to 576.5p as Capita reported £195 million of profits over the six months to the end of June and said profits were only likely to 'rise modestly' in the second half of the year.

Shares in Capita are down 41% over the last year after a string of profit warnings, although they remain above the 10-year low reached following last December's profit warning.

Today's slump will deal another blow to big backers Neil Woodford and Mark Barnett.

Woodford holds the stock in both his Woodford Equity Income and Income Focus funds, although he has recently been trimming his stake. 

Barnett, his successor at Invesco Perpetual meanwhile holds Capita in his Invesco Perpetual Income and High Income funds.

Capita was the biggest faller on the FTSE 250, while on the FTSE 100, which trod water at 7,272, Johnson Matthey (JMAT) was a strong riser, up 7.4% at £31.78 after the chemicals specialist said it was on track to meet full-year targets.

Banks also received a boost from investors' expectations the US Federal Reserve would raise interest rates in December. Higher interest rates tend to bolster bank's net interest margins.

Barclays (BARC) rose 2.9% to 191p, Royal Bank of Scotland (RBS) was up 1.8% at 261p and Lloyds (LLOY) added 1.3% to trade at 66.5p.

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