Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Broomtree - Nope not yet buying CPI, I recently bought another BT tranche to add to my existing stake, I may buy another one if BT SP hits my target area... There's possibility I could pivot towards CPI but... I'll wait on another batch of UK economic data ahead of the bank rate decision next week at the very least, and much more likely I'll wait longer until the next set of CPI results to see what those look like.
Go CPI - if I was projecting a 2.5-4p rise in this with any confidence, I’d be filling my boots but happy to bid my time with current holding
And on that note, I'll pass to Savage to keep commenting (daily, nay hourly) at leisure on how dire the UK economic outlook is and how it's all uber sh*itty for Capita. Maybe, maybe - but looking out past the next few weeks to the update and the H1 release, we should have more clarity on how CPI's business and FCF outlook is trending - after all, that's all the market really cares about.
As long as I keep shorting BT, I don't think Savage is buying anything here. Making money doesn't suit everyone's interests I'm afraid!!
Savage - does that mean you’re buying?
My own analysis has kept me averaging down all the way, but DYOR
(i've shared my views and analysis many times on here before. It hasn't changed for the worse, just for the better because of AH and his vision)
It does look as though it could rise up towards 16-18p on short term optimism ahead of next set of results.
I still think this looks ok for a rise personally and am even tempted to add.
Good lord, the FUDsters are in full swing here. Give the man (AH) a bit of time to work though his cost cuts and a broader corporate strategy and lay it out to us in about 6 weeks time. In the meantime if it hangs around here or goes a bit lower with the broader market, so be it. We had a recession in 2023 and private sector spend was in the dumps - the recovery will come around in 2024 and IMO, we will benefit from a spend recovery in the Experience sector, albeit modestly in 2024. With a much lower cost base and small debt repayments due this year and next, I'm not sure why this talk of administration makes sense. Oh I forgot, FUDsters do what they do best to rankle nervous holders on here.. Doh!!!
Check out the recent Yellowstone webinar. Available on YouTube. The CEO talks about his plan.
IMHO it's a good one.
5 billion euros of debt, half of it current. Hardly comparable
Nofear’s post could perhaps be a positive. With Fujitsu on the naughty step and Atos now under severe margin pressure, perhaps Capita may win some juicier contracts. Bottle half full and all that jazz.
Hi Trisor, Capita is currently losing money YoY, if the trend continues it'll weaken the market capitalisation value of the business, which has already suffered considerably due to YoY revenue reductions from nearly £5bn in 2015 down every single year hitting just £2.81bn for 2023. CPI may well have long term contracts but... there's little evidence they're proving to be lucrative, as else Revenues at the very least would have stopped falling.
So imo CPI has to generate some entirely new business, take some business off from its competitors, or make gargantuan efficiency gains with enough magnitude that as a bare minimum the revenues stabilise. Naturally this is way way easier to achieve in a growing economy... now Chancellor Hunt said at the despatch box when he presented his budget figs said OBR expects UK economy to grow 0.8% this year and 1.9% next year... problem is that is not happening. Growth has fallen short and debt is higher too. So the cards are sadly imo very stacked against CPI and other struggling businesses too. It's less of a problem for businesses with better financials.
I don't want to entertain the idea of Takeover or Administration so long as AH is in charge. He is on a mission and has substantial stake in Capita and will want to make IT great. It is no secret that CEOs make or break a company irrespective of the external factors, because companies have thrived. I believe we have a top tier CEO and he will make things happen. Be patient till June 13th to hear from him what his plans are and what he has already achieved. IMO
GLA
SK-I disagree -if there is no global crash then the UK will be fine. Even if there is one, generally everything recovers within a year to 18 months. Capita has little debt institutional debt to deal with and has long term contracts, some with options. Many of the clients they do business one are very solid institutions many backed by the government. If anything Capita is a strong recession play. Please can you elaborate, given my points, why you feel Capita will be going bust because Im seeing things in quite a different way and its useful to have the opposite view
SK -we have long term contracts with renewal options. What are you talking about please?
Administration is not just an outside possibility, it's a very real possibility if demand is either weak or falls through the floor. That's because cuts can be made by a business to become more efficient... However, few businesses can weather full blown demand collapse, which is where I believe UK economy is heading towards, at full steam ahead right now too.
Trisor, I don't think there will be a global crash, a correction perhaps but because USA economy is very strong the Fed should only need to carry out a little trimming of bank rates to gently support the strong economy. I don't think they'll need to make rounds of steep cuts to keep the wheels turning...
Conversely UK is looking very weak, many more cuts will be needed to support businesses and demand but the weak £ will prevent BoE from delivering the number of cuts required to properly support the economy. When BoE makes even a small cut the inflations will return with considerably more gusto than anyone anticipates. BoE will be stuck between a rock & hard place, the result being a whole heap of pain as few will feel any benefits from MPC decisions.
Actually a joint enterprise with UK government for the section of CPI that deals with UK government would be a good tie up but unfortunately they’re be all sorts of objections
Administration is only a possibility if the company is insolvent ( or about to become insolvent)
The share price has nothing to do with it
SK- if there is a global stock market crash this could go sub 10. Otherwise I don’t think so
Administration possibility and another company struggling
Just what I wanted to see first thing in the am
29th April 2024
Struggling IT firm Atos said on Monday that it had received a letter of intent from the French government including an offer to potentially take over some of its business.
The deal would see the government acquiring Atos' advanced computing, mission-critical systems and cybersecurity products.
Financially struggling Atos on Monday also said it would require substantially more cash than previously anticipated to fund its business through 2024 and 2025.
https://www.cnbc.com/2024/04/29/france-moves-to-rescue-atos-as-it-company-struggles-to-stay-afloat.html
Shares in Atos jumped as much as 19% on the news of the French government's offer early on Monday, and were last up by 22.01% at 11:57 a.m. London time.
RR - Should the SP head sub 10p then my bet would pivot on the spot towards it heading rather quickly into administration. I don't think there will be enough economic activity to offer CPI much by way of support. Tough times are coming.
Think folk getting way ahead of themselves on the speculation front; the new guy hasn’t come in to see it taken away in months. The takeover of Capita would be far from simple and I don’t see it on the cards at this point