March 6, 2024 at 07:39AM
Capita reported a net loss of £106.6 million in 2023 due to a cyberattack by the Black Basta ransomware group, which incurred costs exceeding initial estimates. This resulted in a 20% drop in market capitalization. The new CEO plans further cost cuts to save £100 million by mid-2025. Capita continues to address the impact of the attack on its business and operations.
Key Takeaways from the meeting notes:
1. Capita reported a net loss of £106.6 million for 2023, largely due to a costly cyberattack by the Black Basta ransomware group, which incurred costs of £25.3 million. This news led to a 20% drop in market capitalization.
2. The new CEO, Adolfo Hernandez, announced further cost cuts of £100 million to be implemented by mid-2025, focused on precision in execution, co-creating solutions with clients, and leveraging technology partnerships to improve operating and financial performance.
3. The company is aiming to deliver rapid reduction in the cost base, potentially affecting headcount as part of the cost-cutting efforts, following previous job cuts and property closures.
4. Despite the cyberattack’s impact on the pensions business, Capita continues to secure government pension contracts and wins, reaching a total value of £3 billion for the year.
5. The attack significantly impacted Capita’s customer net promoter score, cash generated from operations, and overall performance in 2023.
6. Capita is still working with the Information Commissioner’s Office (ICO) and continues to monitor the dark web for any evidence of stolen data.
These clear takeaways provide a comprehensive summary of the meeting notes regarding Capita’s financial results, cost-cutting measures, business impact, and ongoing efforts to mitigate the repercussions of the cyberattack.