By Jess Jones
Capita shares in slumped 11.4 per cent on Friday morning after it said a recent data breach could cost it up to £25m.
The government contractor, which provides data and IT outsourcing processes, said this morning it expects a major cyber attack in March could cost it £20-25m, as an investigation nears its close.
This figure is a jump up from earlier estimates of £15-20m.
The data breach in March exposed personal information and passport images on the dark web, affecting customer data for renowned brands like M&S, Diageo, Unilever, and Rothesay.
Two months later, a second data breach affected local councils partnering with Capita.
Capita said today it experienced “minimal impact” from cyber incidents.
The company also reported a loss before tax of £67.9m, compared to a £0.1m profit in the first half of 2022, was due to “business exits, non-core Portfolio goodwill impairment and costs associated with the Group’s cyber incident”.
Operating losses of £35.8m for the first half of the year improved 30 per cent on losses of £51.2m in the same period last year.
Profit before tax surged £8.4m to £33.1m and revenue was up 5.8 per cent to £1.4bn, rising for the fourth quarter in a row.
Commenting on the results, outgoing chief executive Jon Lewis said: “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.”
Lewis will leave in late 2023 but will stick around in the business until next July “to ensure an orderly transition”, Capita said.
Lewis added: “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.”
Capita are aiming for £40m in cost savings by the end of 2024.
