Capita drops to loss as outsourcer flags up to £25m in cyber attack costs
The outsourcing giant posted a statutory pre-tax loss of £67.9 million for the six months to June 30.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Capita has slipped to a loss as it said a cyber attack which rocked the firm earlier this year could cost it up to £25 million.
The outsourcing giant posted a statutory pre-tax loss of £67.9 million for the six months to June 30, dropping from a £0.1 million profit a year earlier.
Capita said the loss was driven by business exits, a goodwill impairment and costs linked to its recent data breach.
The firm said it expects the cyber attack to cost it between £20 million and £25 million, comprising specialist professional fees, recovery and remediation costs and investments to its cyber security.
In May, the business estimated a cost of between £15 million and £20 million.
However, the business cited continued progress on its lengthy turnaround in the update, hailing a rise in adjusted revenues and efforts to cut debt.
Adjusted revenue increased by 6% to £1.4 billion for the half-year, as the business also flagged new contracts signed with the Student Loans Company and the Department for Work and Pensions.
The update comes days after Jon Lewis, chief executive officer of the firm, said he will retire next year.
On Friday, the outgoing boss said: “I am pleased with the good progress we continued to make at Capita during the first half of the year as we accelerate our financial performance.
“Our strategy, focused on two core, growing markets, is working.
“We have delivered increased adjusted revenue growth for the fourth successive reporting period, improving profitability, winning an increasing amount of work with new clients, and remain on track to deliver on our full-year expectations.
“Our strong client relationships, long-term contracts, increasingly competitive and digitised solutions, engaged colleagues and reputation for delivery mean we have a resilient business, well positioned for further growth.”