Capita has revealed that it swung to a pre-tax loss of £170.9m in 2025, falling from a profit of £116.6m in 2024.

The business outsourcing company said the loss was exacerbated by a £73.7m impairment from its call centre business, which has seen a reduction in clients amid the rise of AI.

Capita was also fined £14m last year by the Information Commissioner’s Office (ICO) for a cyber-attack in 2023 which saw millions of people have their personal data stolen.

Publishing its full-year results covering the 2025 calendar year, Capita reported a total revenue of £2.31bn, a figure 4.5% down in the previous year.

The group highlighted that it had made delivered £250m of annualised cost savings, with a significant proportion being realised as it embeds more AI throughout its business.

However, the FTSE 250 company has seen its share price slip by 14% since releasing its results this morning.

Capita’s CEO, Adolfo Hernandez, remained upbeat and said the company is “building momentum as a leaner, more agile business”.

“[We] are well positioned to capture the market opportunity as customers increasingly look to AI and technology to improve productivity and efficiency,” Hernandez commented.

“We delivered a major milestone by delivering £250m of annualised cost savings, strengthening margins and enabling reinvestment in our product, data and cyber capabilities. We also resolved several significant legacy challenges to simplify the business.

“With clear priorities for 2026, we remain focused on disciplined execution and are confident in our ability to drive further progress in Capita’s transformation.”

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