A chill may have run down the necks of IR departments at Serco and Capita with the news that ‘City sceptic’ Matthew Earl has initiated coverage of the outsourcing companies with ‘sell’ recommendations.
Earl, a former Charles Stanley analyst now with Matrix, is the man whose work was called ‘a masterful feat of incompetence’ by the erstwhile head of Connaught, while Xchanging dismissed his research as ‘inaccurate’ and ‘misleading’, according to today’s FT.
Connaught subsequently collapsed into administration. Xchanging has fared slightly better, although the company still issued a profit warning last month that destroyed half its market capitalisation.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.