Capita faces £20Mn revenue dip after losing contracts
LONDON, UNITED KINGDOM — Outsourcing firm Capita Managed IT Solutions reported a sharp decline in annual revenue by over £20 million (US$25 million) due to losing contracts over the last few months.
According to its latest annual report, the firm saw its revenue plummet from £98.8 million (US$124 million) to £76 million (US$95 million), while its pre-tax profits slightly dropped from £6.4 million (US$8 million) to £6.2 million (US$7 million).
This report marks the last financial results for the Northern Ireland-registered company, which is set to be liquidated within 12 months as part of a broader restructuring by its parent company, Capita plc. Plans are in motion to transfer its cloud-based infrastructure business and related assets to another group company.
“The company’s revenue for the year decreased from £98,785,000 in 2021 to £76,129,000 main due to contract losses during the year,” noted the business in a filed strategic report.
The decline in revenue and staffing levels at Capita Managed IT Solutions adds to the firm’s already complex financial situation, raising concerns about its overall stability and operational risks.
Capita plc. itself had a rocky year, with a pre-tax loss of £67.9 million (US$85 million) for the first half of 2023, exacerbated by a damaging cyber attack costing up to £25 million (US$31 million).
