Shares of Capita PLC (LON: CPI) tumbled more than 20% on Tuesday after the firm said it recorded a £28.5 million loss for the first half of this year.
The UK-based company suffered “a significant hit” from the pandemic which is likely to deal a crushing blow to its finances in the next two years.
“This crisis has come in a pivotal year for Capita when we had expectations of beginning to generate revenue growth and sustainable cash flow,” Chief Executive Jon Lewis said.
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“Instead, we have had to focus on managing our way through the crisis.”
Capita’s pre-tax loss this year comes after the outsourcer recorded a profit of £31.2 million in the same period a year ago. Adjusted revenue for the first half of the year plunged 9% to £1.65 billion, with projections for the second half of the year pointing towards similar levels.
Capita share price crashed more than 20% to hit a new 4-month low at 27.49.
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