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Thanks.. just copied your text back up. Useful to know this.
I will see where it is in a few weeks. Sp hit a 52 week low this week which looks completely unjustified. Probably due to Schroeder’s trimming a few.
Good to know that the money for disposals has only just been received as I believe a few were concerned that debt had not been paid down as much as expected following disposals. Not sure if Cpi made that clear in the update,
IR email
We were surprised by the reaction to the trading statement in December, as were our shareholders.
Frankly we reiterated most of our guidance from the half year results and pointed out things that should really have been in the market already, namely that Covid lockdowns in December would affect our growth outlook for the full year and that we were facing into an inflationary wage environment, which in a people-based business would take some time to work through.
I think perhaps that latter comment surprised a few people, as well as some expectation that net debt would have declined by the end of the year, which would only have been the case if the proceeds received in January had arrived before the end of the year.
As for the media, the quality of the commentary has been pretty low and articles have been factually inaccurate, but we are an easy target for now.
So in terms of reassurance: we remain on track to reduce debt this year and the disposal process is going well; we expect to have grown in 2021 and certainly in 2022, which represents a turnaround for the business; and we also expect a major improvement to positive free cash flow next year.
Personally I would say that on the ground it feels like an awful lot has been achieved in the last few years and that will start to show in the numbers.
couldn't agree more, this company is in a downward spiral
jointly Buying a failing business isn't going to increase the share price
The price of capita has never really reached pre covid highs although ftse has reach near pre covid levels. The price is at a low base and the company are in far better shape now than before the pandemic. As Stuart Morgan said in one of the post mentioned, there's some inaccurate information out there and are easy target. Broker ratings by atleast 3 analysts has this above 55p in the past month or so. Market cap of under 600m which is less than capitas cash position. Also, I think they said they'll have 50 m free cash flow from restructuring which should cover any inflationary cost. IMHO
I'm heavily in this and averaged at 40p, managed to average down this week and just hope it doesn't retrace even further, just for my stress levels.
The only thing that does concern slightly is that covid was not highlighted in August as an issue but was in December, and also the mention of inflationary issues which maybe used come full year results. To smash it like they did seemed way over the top, and it seems to be trading in a similar way to pre August.
His comments also about seeing lots of changes from within, which hopefully will show in the numbers, is reassuring though.
The market cap is below 600 million...when the announcement was released in December, Stuart M was surprised by the reaction of the share price when it dropped around 20% from around 46p....assume the share price today was still 46p after December statement and then end of year results turned out bad. Then u would expect it to drop roughly 10 to 15% (depending on result of course) from 46p price level ....the point am making here, the price has dropped around 20% on literally saying what they announced in half yearly report. as someone has has said before, this share is priced to fail and it seems worse possible news is priced in, so even if there was bad end of year result, the downside is minimal, do you think this company which be valued anywhere around 400 m. Which is ridiculously low...hence why shorting is such a high risk but wouldav been favourable had the share price was around 50p mark on assumption result wasn't going to be good. Also in addition to this. Someone wrote the message recieved by Stuart M. Saying debt wouldav been reduced had the receive payment of disposal before December so we can assume the debt wouldav been reduced from recent disposals as highlight in the rns to directly pay down debt in the final results. All this in my opinion of course gla
@notaflipper; "So there is now some worry whether this was positioning as Results will be missed."
Yeah, that is possible. It's one of the reasons I'm not adding until I see the results. I'll keep it long-term and I think it's going to give a good return, but I'm a bit worried about the effect of mediocre results. The market seems to slam this hard.
The bit in his email about casflow positive next year, does he mean next business year starting 2022 or calendar year 2023.
This is relevant because Jon Lewis did say cash flow positive in 2022.
Schroders have sold 0.36635% of their shares. They had increased from circa 16% to 18.3%+ in August. Now basically back down to 18% flat. So I think that is circa 6,170,336 shares. Not significant, but not of great shout of confidence if they have bought for 46p+ in Aug '21. If anything the script should be that Marshall & Wace should be reducing their shorts but these still hold at circa 0.8% from 21st Dec. And holders like Schroders should be adding at these bargain basement levels...I mean doesn't everybody make money on this share? Is the RNS much news, no it is a slight reduction and transitional, main thing will be what happens to the sp in the absence of any meaningful news flow and low volume. Stuart M's response posted kindly on this BB by others, gives lie to the poor IR performance and blames it on PIs who cannot read what the Company is trying to day. Fact is that the IR here has been consistently poor, and the Trading Update here last December was mis-timed and raised fears of impact of Covid impairment, hitherto not mentioned in the Half Year report. So there is now some worry whether this was positioning as Results will be missed.
Apologies for any accuracies in the above as posting on the train.
Is this someone reducing ?
Positive Free Cashflow from next year = divis - that is what THIS share needs more than anything - that was what took it to the SP it was
They are an easy target and gutted SP hasnt gone where I expected, but making money trading it and i still believe its WAAAYYYY undervalued and will continue to give great returns if you have the time / patience
No Financial advise and holding a decent amount again (and added / adding) so am bound to be bullish
GLA
We were surprised by the reaction to the trading statement in December, as were our shareholders.
Frankly we reiterated most of our guidance from the half year results and pointed out things that should really have been in the market already, namely that Covid lockdowns in December would affect our growth outlook for the full year and that we were facing into an inflationary wage environment, which in a people-based business would take some time to work through.
I think perhaps that latter comment surprised a few people, as well as some expectation that net debt would have declined by the end of the year, which would only have been the case if the proceeds received in January had arrived before the end of the year.
As for the media, the quality of the commentary has been pretty low and articles have been factually inaccurate, but we are an easy target for now.
So in terms of reassurance: we remain on track to reduce debt this year and the disposal process is going well; we expect to have grown in 2021 and certainly in 2022, which represents a turnaround for the business; and we also expect a major improvement to positive free cash flow next year.
Personally I would say that on the ground it feels like an awful lot has been achieved in the last few years and that will start to show in the numbers.