Security News > 2024 > March > Capita says 2023 cyberattack costs a factor as it reports staggering £100M+ loss
Outsourcing giant Capita today reported a net loss of £106.6 million for calendar 2023, with the costly cyberattack by criminals making a hefty dent in its annual financials.
As a result, newly minted Capita CEO Adolfo Hernandez announced further cost cuts for the coming year that aim to save the business an additional £100 million by mid-2025.
"We need to deliver a rapid reduction in our cost base and are on track to deliver the net £60 million annualised cost savings, from Q1 2024 as announced in November. Today we are announcing further material efficiency improvements of £100 million to improve our competitive position."
Despite the 2023 cyberattack impacting its pensions business, Capita continues to win lucrative government pension contracts, among other wins, which for the year reached a total value of £3 billion.
In November last year, and on the same day it announced the near-four-figure job cuts, Capita alerted the London Stock Exchange that it won a ten-year contract worth £239 million to manage the Cabinet Office's pension scheme, for example.
"While this is a ten-point reduction from 2022, it remains a creditable performance bearing in mind the impact of the cyber incident," today's report [PDF] read. The attack also had a substantial influence on the cash generated from operations, which decreased from £98.4 million to £41.2 million - driven in part by the cash costs of the cyberattack.