Fujitsu Faces Financial Strain Amid Post Office Scandal Costs

BRACKNELL, Berkshire — Fujitsu Services, the company behind the faulty Horizon IT system linked to the wrongful convictions of over 900 sub-postmasters, is under financial scrutiny as auditors raise concerns about its ability to meet compensation payouts. The company’s UK arm, based in Bracknell, Berkshire, has been unable to quantify the costs of compensating victims, casting doubt on its financial viability.

Auditors from EY have flagged the issue, noting that Fujitsu’s Japanese parent company has pledged to support its UK operations until December 2025. However, this support may need to extend for an additional 12 months to ensure Fujitsu can meet its financial obligations. Despite injecting £200 million into its UK operations last year, the company faces mounting pressure from the fallout of the Post Office Horizon scandal.

The Horizon system, developed by Fujitsu, led to wrongful convictions of sub-postmasters for theft, fraud, and false accounting between 2000 and 2014. Executives have admitted to knowing about software “bugs and errors” early in the system’s rollout, yet failed to address the issues adequately. Politicians have called for Fujitsu to be held accountable, but the company continues to secure significant public sector contracts, including a £25 million deal with the Home Office in November 2024.

Fujitsu’s UK operations trace back to International Computers Limited, a company founded in the 1960s under a government-backed technology initiative. The UK arm is now set to be folded into Fujitsu Technology Solutions, a Dutch-based entity, as part of a corporate restructuring. Fujitsu Services Holdings Plc, the UK parent company, will be liquidated after March 2027, according to its 2023 annual report.

A Fujitsu spokeswoman stated, “Fujitsu Services Limited is well positioned to adapt to adverse market effects. In 2023, we secured a number of wins, extensions, and renewals, with total revenue up 2.6 percent, driven by additional business with well-established private sector customers. We remain committed to the UK market and to delivering for our customers.”

Despite assurances, the company’s financial challenges highlight the broader implications of the Horizon scandal, which has been described as one of the UK’s most significant miscarriages of justice. The government has yet to finalize the exact amount Fujitsu will contribute to the compensation fund, leaving victims and stakeholders in limbo.