By Ian Walker
Capita shares fell after the company said that administration of the U.K. Civil Service Pension Scheme contract hadn't been good enough, and that it was working to resolve the issues.
Shares were down 34 pence, or 10%, at 291 pence in early afternoon European trading. They are currently down 28% over the year to date.
The London-listed outsourcing company said Tuesday that the issues particularly related to members waiting on bereavement, retirement and quotations.
"We continue to work at pace to resolve the operational issues in collaboration with the Cabinet Office," the company said. It added that it now has the processes, automation and technology in place to work through the backlog.
Capita started managing the contract late last year, having been awarded the 10-year 239 million pound ($320.1 million) contract in November 2023.
In January the company said members had reported a number of issues, including difficulty logging into the portal and incomplete pension details. They also reported long waits on customer service calls and delays to pension quotes and payments.
It said at the time that the company had inherited a backlog of 86,000 cases from the previous administrator.
Write to Ian Walker at ian.walker@wsj.com