Capita shares fell sharply in London trading after the outsourcing group acknowledged serious failures in its management of the UK civil service pension scheme.
The admission came in the wake of a scathing intervention by Cabinet Office minister Nick Thomas-Symonds, who publicly committed to recovering all funds lost due to the company's operational errors.
The government official stated that the firm would be held accountable for the financial impact of the breach, signaling a hardline stance on the recovery of public money.
Capita responded by apologizing for the delays and service issues, describing its performance as "not good enough" in a statement to the market.
The incident highlights the ongoing risks associated with large-scale public sector outsourcing contracts, where operational failures can quickly escalate into political and financial liabilities.
Investors are now assessing the potential magnitude of the financial recovery efforts and any associated legal or regulatory penalties that could weigh on the company's balance sheet.