Capita see no further value in the business Applied Language Solutions brought
A few days ago there was a post here including an excerpt from Capita's accounts. I inquired of a qualified friend of mine, highly experienced in international finance and business at the highest level. This is what he said, in an email just received:
"Amortisation is the same as depreciation - so what they are saying is that Capita has overpaid for Applied Language Solutions and, as the business has not performed as expected, Capita has to increase the amount of amortisation / depreciation in their P/L to write-off the value of their original investment.
So all this is saying is that Capita see no further value in the business Applied Language Solutions brought. This means any goodwill (excess of what Capita paid for the business over the Net Asset Value of ALS when Capita brought it) must now be set to nil as it has an impaired value - i.e. ALS contracts have clearly no value in them as, it appears, does the business."
CapitaTI has no value, their contracts have no value, and Capita plc has said so. In their own words.
