July 12, 2018 / 6:39 AM / 4 months ago

UPDATE 1-UK's Capita raises asset sales target to above 400 mln pounds

(Adds details on new contract, background on asset sales plan)

July 12 (Reuters) - British outsourcing company Capita Plc expects to raise more than 400 million pounds ($528.0 million) from non-core asset disposals in 2018, 100 million pounds ahead of its previous target.

The company, which raised 701 million pounds from investors in May after a series of profit warnings, agreed on Thursday to sell its parking management business, ParkingEye, for 235 million pounds.

The sale to a vehicle owned by Macquarie and funds advised by MML Capital Partners is expected to close this year, Capita said.

The company, which provides IT-led services for the public and private sector, has been working to control costs and pay down debt as it ran into problems after chasing contracts on slim margins.

Capita had lined up disposals worth 300 million pounds for this year, and more in the following two years, with a plan to return to revenue growth in 2020. Chief Executive Jon Lewis, who took over in December after working for oil services company Amec Foster Wheeler, said in April that many of Capita’s problems were self-inflicted, and could be tackled by doing “fewer things better”.

Capita also said it won a six-year government contract, worth about 109 million pounds, to manage administration and processing for all primary school national curriculum assessment tests in England. ($1 = 0.7576 pounds) (Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri)

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