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lots of moving parts strengthening the balance sheet....
If the P&L offsets profit on long term contracts (where the cash has been received in prior years) with underlying positive cashflows and (say) is net neutral, then the only [easy] metric is an improvement in net assets.
The net assets were £297m (2021). Market Cap is c.£437m (SP 25.96).
Difference is about 8p. As the lows were c20p and the trading range to c.30p, the cash from 360 must increase the SP surely?
May have to wait for 2022 statutory accounts to trigger a rerate so plenty of time to accumulate more and event driven imho
I know a Rights Issue might be unpopular but with the debt eradicated, CPI shares would easily rerate to well over £1 each thus more than compensating holders for the additional 35p or so they stump up for their Rights! GLA Holders!
I wouldn't go that far Aim as £15million in terms of their tangible profits is like a gnat's **** especially since they'd pay circa £10million less in interest payments. I wonder though if it might not be better to keep and improve profitable sections of the business and raise a fresh rights issue to eliminate the debt if that's the aim.
It's like a house...pay360 is the foundation. Other businesses at the top..selling pay 360 is weakening the foundation...makes the financial more rocky...Imho
Bubble, exactly my point...if a business is growing and doing so independently, and it's progressive. It's keeps the financial stable if other business are affected my macro events imo
No AM we are focusing the company and bringing debt to or close to zero in the process
Thanks for posting the link to the Pay360 article PanamaPete. If next year pay360 is expecting £15million profit and it's valued at £200million, it will therefore generate income of approx.7.5%. Maybe I'm missing something but what is the logic of disposing of something earning 7.5% (and growing)in order to pay back an equivalent amount of debt which is probably only charging 2 or 3% interest? Personally, it would seem better for the company to leave that £200million on the books.
I'm not trying to be negative here as I've accumulated an investment of 60,000 shares in Capita, of which holding I'm targeting at least a tripling in value in due course. GLA Holders!
At the cost of shrinking the business!..CIne should do fire sale like capita an bring its debt down to show its dropping then ur comment below on the board will be valid is what ur saying I guess lol imho
Cineworld said. Its net debt stood at $8.9 billion at end-December, up some $600 million from 2020.17 Mar 2022
See - not at all comparable
Our debt is dropping
No Cine and Capita’s debt management/ progress is very different
Everything u say below can be posted in all the shares out there...lets use CINE...somewhere in the future CINE may hit £1, it may pay dividend and do buy backs also...I can literally copy ur post and post in other boards ..and they will agree if they live to see the day that all happens imho
The Experience division is seeing progress with its win rate on new business, now at 48% from 26%.
Experience division now growing
AM the difference between yourself and many others that are invested/ investing here is you fret over half a penny falls
We on the other hand are very comfortable with the progress being made and can see the following in the future:
Large sp gains - ultimately to over £1
Dividends restart- whether that’s next year or the year after doesn’t matter to be as, again, it’s a significant long term revenue purchased cheaply
Share BUY backs - again propelling share price growth
So while I like to see the sp moving up - I know nothing moves in a straight line, I’m confident of our future course
I see this as a great opportunity- especially at these low prices
Gla
No one used the term significantly lower other than yourself..however it could not be ruled out...if you look at all the disposal of late. Majority If not all were sold on the cheap...and the business has acknowledged this with:
'weaker-than-expected returns' from some of the sale'
Further to this. It wipes out revenue and profit from the accounts shrinking experience division imho
@Aim There is a difference between LOWER (eg £190million) and SIGNIFICANTLY LOWER (eg £100million).
I don't think the ESS comparison is fair as that business was 'on it's a**e and in need of substantial investment to bring it's technology into the 21st century.
You harp on about that £100k profit (after exceptional items were written off) as though good financial planning and accounting practice is a business mistake! Even though that 'mistake' saved thousands in Corporation Tax.
Probably no convincing you .... But this should not be trading as low as 25p / 26p given the revenue, assets and profit that this company owns / creates.
Already fed up of the sunshine AM ?
No matter how much you write- Capita’s hugely undervalued and is due a major rerate imo
Whether that happens next week or next month- I don’t care
Atb
'Potential buyers may be eyeing a price LOWER than £200million, partly due to Pay360's exposure to government contracts, which account for around half of its revenue, one source said.'
'The company, which collects the BBC licence fee and handles London's congestion charge, recently reported a plunge in half-year profits to just £100,000 from £261million a year earlier, blaming 'weaker-than-expected returns' from some of the sales and a £92.5million goodwill write-off'
'weaker-than-expected returns' from some of the sale' ... u speak of fire sale...there evidence of this in past disposals...ESS was the biggest imho
@Aim You make the assumption that Pay360 will be sold significantly below the asking price. You also point out how profitable Pay360 is.
Capita have no need to execute a fire sale of any of their assets so why would they accept a low ball offer for a profitable business? Answer: They wouldn't
So what all of the LTHs want is that PE offer close to £200m for Pay360 and that the share price group rerates to a more sensible valuation.
It's crazy that we've got assets up for sale at £200million that create good profit when the whole group is only valued at £463million.
That can't be right!
Firstly, its for pay360 business which they are trying to sell from experience division which wasnt in their plans to sell initially as they are trying to flog portfolio division...
The asking price is around £200m... and PE are looking at price below this...
Selling Pay360 reduces revenue and profit significantly shrinking the business as its one part of the business that has decent revenue and profit to keep experience division afloat
Below asking price sale further affects the business goodwill impairment.
Remember what happen to ESS...asking price was £700m ish and they got around £375m..
Imho
It's these sort of pe rumours that squeeze shorts and bedroom traders like Aimaster.
I remember when an article about pe sniffing around m & s last year caused a big Monday spike.
Interesting piece in Mail On Sunday suggesting the asking price (being sniffed at by PE) for Pay360 is £200million.
That would be an amazing price (considering the whole of Capita is only valued at £463 million at the moment) and would surely light up the share price if an offer for anywhere near that amount was received?
Anyhow - nice to see Capita in the Sunday papers again - that can only help the share price!