Posted by Richard Willett - Memes and headline comments by David Icke Posted on 6 March 2024

Capita shares plummet as firm sinks to a loss and unveils another £100m of cuts

Capita has earmarked an additional £100million of annual spending cuts, as the group’s new boss vowed to boost its competitive edge after swinging to a loss.

The group posted a loss of £106.6million for 2023, down from a £61.4million profit the prior year and ‘reflecting business exits, cost reduction programme expenses and 2023 cyber incident costs’.

Chief executive Adolfo Hernandez told investors on Wednesday he would plough ahead with a ‘rapid reduction’ in costs, following a separate £60million-a-year savings drive announced at the end of 2023.

Capita, which operates London’s Ultra Low Emission Zone, did not say whether the latest round of savings would result in a further headcount reduction after announcing plans to axe 900 jobs in November.

Capita shares fell over 16 per cent or 3.4p to 16.78p on Wednesday morning, having sunk 60 per cent in the last year.

Capita’s cyber saga saw it incur net costs of £25million, comprising, among other costs, specialist professional fees and recovery and remediation costs.

The group said the incident was a ‘challenging experience’ and it had ‘taken steps to share our experience and learnings transparently with our clients, suppliers and other companies and plan to continue this good practice in the future’.

It added ‘Since the incident we have continued to see good contract growth momentum with a 17 per cent increase in TCV secured in 2023.’

Capita is one of the UK’s biggest employers, with a 43,000-strong workforce, offering staff for many Government functions, including a large amount of NHS support staff.

On an adjusted basis, its revenue edged up 1.3 per cent to £2.6billion last year. On a reported basis year-on-year, revenue fell 6.6 per cent.

Capita said 2023 revenues were lifted by growth in its Personal Independence Payments unit, as well as ‘benefit from indexation and a commercial settlement in the closed book Life & Pensions business in Experience’.

Read More: Capita shares plummet as firm sinks to a loss and unveils another £100m of cuts

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