Troubled outsourcing company Capita (LON:CPI) launched a £701 million rights issue on Monday, in the hope of “transforming” the group with sustainable capital.

The outsourcing giant have issued a series of profit warnings in the last few months, losing around two thirds of its around £1 billion market value with investors worried that the company may be close to failure. Losses continued to widen in the year to end of December, before the company announced plans for a £700 million rights issue.

The rights issue launched on Monday, and will form a key component of a transformation plan to “provide Capita with a sustainable capital base to support its clients and operations.”

Capita also reported substantially widening losses, from £89.8 million a year ago to £513.1 million now. However, underlying profit rose 43 percent to £383 million.

Performance was had been hit by £850.7 million of specific non-underlying items, including £551.6m goodwill impairment and a number of other asset impairments and provisions. The firm said underlying pre-tax profits were on track for between £270 million and £300 million for the year ending 31 December 2018.

Revenue also fell by by 3.1 percent, with underlying revenue down by 4.3 percent to £4,167.9 million. Net debt increased to £1,117.0 million from £1,778.8 million the year before, while adjusted net debt fell to £1,219.4 million from £1,809.3 million.

Shares in Capita (LON:CPI) are currently up 12.45 percent at 179.70 (0922GMT).