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Part of Plan B released. Main point is working from home in response to an expected rise in case numbers in circa 2 weeks. time. CPI should be well versed in home-working now. Getting bit a of race to get the trading update out now, before macro news just with drown out anything released.
Aim - this was junes update - that was decent info - I expect something as useful
21 June 2021
MARKET UPDATE
Capita plc (Capita) remains on track to deliver growth and strengthen its balance sheet
Trading
We have seen an improving trend in our trading performance in the first half of the year, in line with our expectations.
Capita remains on track to deliver revenue growth in 2021, for the first time in six years, despite the ongoing impact of COVID lockdowns, in particular in its Specialist Services division.
We have won a number of significant contracts this year, including the Royal Navy Training contract through our Government Services and People Solutions divisions (Total Contract Value £925m), the extension of a European telecoms client (TCV £528m) and an extension for Tesco Mobile (TCV £58m), both in Customer Management.
As a result, we currently expect Half Year adjusted revenue to be flat on prior year adjusted revenue.
Our operational performance has been good, with a positive start to our Royal Navy Training contract and successful ‘go-lives’ for Irish Water in April and on GP Payments and Pensions in May.
We continue to make good progress with our cost saving programme which, together with an improving mix from new contract wins and stronger operational performance, will see the initial benefits of operating leverage at the half year, as expected.
Cash collection has improved in line with underlying trading performance and benefited from better than anticipated customer payments. Liquidity remains strong at £689m on 17 June, ahead of the scheduled repayment of c.£160m of private placement notes in July.
Non-core disposals
We continue to deliver on our plans, set out in March, to strengthen the balance sheet over the course of 2021.
We are making good progress with our planned disposals, and we remain on track to realise combined proceeds of at least £200m in 2021 (in addition to the £299m initial payment received from the sale of ESS in February).
The first of these, the sale of Axelos for an enterprise value of £380m, which will generate total cash proceeds to Capita of £184m, was announced this morning.
Preparation for the sale of other non-core businesses, which will be held in our new division Capita Portfolio, is also progressing well. We will provide further updates as appropriate.
Future Capita
We are well advanced in our plans to implement the next phase of our transformation.
In August we will move to the new structure of two core divisions, Capita Public Service and Capita Experience, and the third division holding our non-core assets, Capita Portfolio.
Capita remains on track to deliver £50m of annualised cost savings from 2022 onwards, associated with this structure, as announced in March.
Our half year 2021 numbers will be reported under the current operating structure, with Full Year 2021 being reported in the new structure.
Tbf, it probz be a statement to say, they're on track rather than anything substantial. It's all about the final statement at year end. Let's see what comes of it.. at the minute, that bots playing with the price. But still long way away from statement end of this month with soo much happening each day
Aim - they put out a decent trading update at the end of H1 (June) - It was then backed up with the financials in Aug
I expect that we will get a similarly detailed update about H2/FY when we get it - hopefully next week
The level of scrutiny in every word in that statement is huge (and needs verifiable data)
So I think we will have a very good idea as to what March financials will look like
Just hoping that the old contracts that will have expired H1 are all cleared out and the new contracts (esp RN contract) that started end H1 or H2 are as profitable as they expect them to be
CPI is a different business from what it was 2018/19 - its becoming more tech focused and driving for sustainable profits rather than turnover
Lets hope they are delivering what they said they would be in August
If so, we all have nothing to worry about!!
Good luck all (as we sneak into green for the day!)
In regards to trading statement, last year, due to uncertainty, they put the statement out due to high volatility. This year, they said they were considering but it's was like they were forced to issue a statement so expexting nothing much different to last half yearly one. And I'm told they if anything, they'll put statement out at year end. Gla
Lot more happening, 2 possible defaults in property sector in China, interest rates announcement I think next week. Plan b announcement possibly tonight and then high new variant cases ...lot to balance
The market seems to be absorbing the WHO statement calmly.
Although Evergrande grabs the headlines with their huge debt debt mountain and their statement over the weekend, other developers like Kaisa suspended their shares from trading in Hong Kong as a consequence on not being able to meet $300m of debt repayment. Also on Monday, a smaller property developer Sunshine 100 China Holdings said it had defaulted on a $170m debt payment. So it is all snowballing.
That said the Hong Kong index is flat, so with the CPI Trading update expected next week at the latest then you would hope Armageddon was postponed till CPI could get the trading update out, with the associated positive results and new trading range ffs. Genuinely hope there is a rabbit in the hat as I can fully appreciate it when you hear of PIs just finding the markets to crazy at the moment to put their toes in.
How can Ftse 250 be up 1.5 % and Capita flat.
I don’t get it.
Does the high beta only applies to the downside??
The question is, will this cause a crash overnight. Looks like they're on the verge of default
On*
Have they defaulted onto their bond payment?