Outsourcing giant Capita will nervously wait to see how the market responds to its rights issue to raise £701m having reported a £513m annual loss.

Though the group insists that any comparison to collapsed rival Carillion are wrong because it doesn’t do work such as PFI projects, there will still be plenty of concerns.

Profits were wiped out by £850m of one-off costs, mainly from writing down the value of acquisitions made under its previous management, so that fresh funds are needed to reorganise the business.

But if the business model was so wrong before, investors may argue, can a massive injection of capital be enough to set it on the right course?

A resetting of the strategy is what is required- and even then investors may take some convincing.