The City yesterday revised upward its profit forecast for Capita after the outsourcing group announced it was aiming to further cut costs.
However, the plan has not pleased employees, with 900 jobs said to be at risk.
Over the summer, Capita, known for collecting the BBC license fee and the London Congestion Charge, laid out plans to cut £40m from its annual cost base by the end of next year. Chief executive John Lewis now believes the company could save £60m a year by the spring. The savings will be needed if Capita is to meet its goal of doubling its operating margin from 2.9% last year to 6% in the future.
Analysts were also surprised