10th Mar 2026 10:53
(Alliance News) - Capita PLC shares fell on Tuesday, after it swung to an annual loss and warned of a "small decrease" to its adjusted operating margin in 2026.
Shares in Capita sank 14% to 300.99 pence on Tuesday morning in London. However, the stock is up 48% over the last 12 months.
The London-based outsourcing and business services firm said it swung to a pretax loss of GBP170.9 million in 2025 from a profit of GBP116.6 million in 2024.
Revenue fell 4.5% to GBP2.31 billion from GBP2.42 billion, while administrative expenses jumped 14% to GBP597.6 million from GBP526.4 million.
Capita said adjusted pretax profit rose 84% to GBP74.5 million from GBP40.5 million, due to the benefit from the firm's cost reduction programme as it delivered GBP250 million of annualised cost savings.
The adjusted operating margin improved to 5.2% from 3.8%.
"2025 was a pivotal year for Capita as we progressed our transformation to become the first AI-led business process outsourcer.
"We are building momentum as a leaner, more agile business and are well positioned to capture the market opportunity as customers increasingly look to AI and technology to improve productivity and efficiency," said Chief Executive Officer Adolfo Hernandez.
Looking ahead to 2026, Capita said it expects a small decrease in adjusted operating margin due to "continued challenges in Contact Centre and increased mobilisation costs in Pension Solutions and Public Service".
The firm said: "Capita is now a leaner business, focused on delivering scalable and repeatable solutions to customers utilising its technology partners and in 2026, we will be launching further AI-powered products which will make us more competitive, re-enforcing our right to win and more relevant to our regulated and public customers who are increasingly looking to benefit from AI solutions in a trusted environment."
The firm did not declare a dividend, unchanged from a year ago.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Capita