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Took this from BT post by pokerchips highlighting SK's share price predictions on BT.
"Yes pokerchips, seems my 165p prediction was incorrect/premature"
"I think we'll be seeing 114p+ shortly."
" IMO We will see sub £1 this week."
Savage
Well , whatever crystal ball you are using ...I think you need to get a refund... it keeps sending you very different messages
🤣
Sorry but I can't take SKs comments seriously anymore lol 😆 imho
The cuts likely to increase profitability and margins and fcf. And efficiency will propelled the share price higher in good time. Imho
I think capita is more of a defensive stock. Guaranteed revenue operating in areas that is needed and will continue to be needed. The valuation has contracted near to all time lows. The vision to be established in capita matket day.
Oh no SK. Everything's going to crash. Even your first BT plc investment since 2022. Could register first lost on ur first trade in 2 years imho. My question is, if u see pound dropping. Why have u invested in BT? Lol contradicting to what ur saying here. Imho
BoE can make the cut in June if it wants but here's the playoff... US dollar is not near to cutting, so if BoE MPC plays that hand we shall see £sterling pummelled and inflation will return with a vengeance.
" I have been involved with most of the large wins. Plus a few that Capita decided to no bid!
Capita is getting better at bid review stage."
That is good to know, Simpiles. It is good to walk away from bids that don't deliver a benchmark bid margin where risks are better understood. I work in the services sales team of a software firm where a key benchmark for us is for a 30+% deal bid margins with a blended onshore/offshore resource mix and I strive to hit the high 30s at a minimum, and won't hesitate to call out on a bid qualification meeting if that bid isn't in our sweet spot or one that is too risky that we could win with a low margin or we have no real chance of winning. With the UK in a recession and opportunities not easy to come by in the past 12 months or so, the wider team ran with opps that we have no realistic chance of winning, but kept some of the team meaningfully occupied as we went through the motions of moving through the sales funnel. If CPI is now meaningfully getting better at the bid review stage and not bidding on opps that don't hit bid margin targets, that is more than welcome. Revenue is vanity and profits are sanity and all that!!!
Things seem to be looking up a bit this quarter, anecdotally speaking, and maybe that's a sign of green shots in the wider UK economy, looks like that to me anyway. As for 1.185 USD/GBP target from SK, that could be a possibility in a scenario where the US was firing on all cylinders and inflation could well be on a upward trajectory with oil contributing bigly - that's not a scenario that's currently playing out. US Services PMI was a shocker on Friday and for everyone's sake I hope it's a blip rather than a trend - that's my view. Unless a supply shock is wrought upon us in the next few weeks, GBP will continue to trend higher as markets price in a June BOE rate cut or an August 1st rate cut at the latest - a scenario likely to keep the UK economy buoyant.
Patience will pay off with CPI - IMO.
Hi Kilaratam
No offence taken!
Unless Capita went on a hiring spree that number is incorrect! Looks like the website has not been updated.
Capita is a sound company with mostly good workers. You will always get the odd few but that is what it is.
Simpiles
The number of employees (43000) is according to CPI website in the " About - Capita" page.
But still 38000 is a large number.
Honestly I didn't mean to offend you or Adh or anyone. I just gave my perspective. I need to thank you ,Adh and other former colleagues in sharing your experiences and for being honest. I endorse
By all means DYOR and go back as far as you want; it’s also great to get some thoughts from former employees BUT the reality is this beast is under new management and it is going to take some time to bed in and make the changes required - at this point you either believe that or you don’t!
Kularatnam
Staff numbers in Capita are below 40K
probably around 38k confirmed this with Helen before Christmas.
My job although a siloed team was a central function to the other team. I have been involved with most of the large wins. Plus a few that Capita decided to no bid!
Capita is getting better at bid review stage.
@adh - thank you for your candour and honesty
It does make you wonder what the hell management have been doing. Looks like they had a cracking time. Great salaries. Hope this can be truly turned around.
SK, Thank you for the correction.
It should have read "SP will be below 10p next week" and yep £ weakness is inevitable imo.
Https://www.fool.co.uk/2024/05/03/heres-where-i-see-the-bt-share-price-ending-2024/
Sorry a correction SK's predictions
"SP well be below 10p next week and pound will be $1.185 in June. Much to look forward to."
Hi all. I thought of making a suggestion. Shall we continue the discussions on CPI under this caption/thread as "Power of Dollar" is waning and not very appropriate right now. Also SK has set two targets - SP well be below next week and p£ will be $1.185 in June. Much to look forward to.
On the observations of Aha and one or two former employees , we can see a glimpse of what was happening at CPI , but I would be specific to say in their Divisions/teams. With due respect to them and their observations, I would also add that we need to look at the "Bigger Picture". CPI employs over 43,000 people, so many locations ,large number of divisions and churning out a revenue of around £3bn shouldn't be as bad as it is portrayed, as an employee at whatever level will only have very limited visibility of what is happening in the group. This is where a good CEO comes in. All we need is a kind of fine tuning of things. All we need is a 5 to 10 percent improvement in Costs or Revenue. Hope we achieve that. GLA.
"By the way what was JL doing, watching Wimbledon, Netflix, playing Empire or just other playing games."
Spot on, Terry - the truth isn't too far from there I'd imagine. He and TW couldn't be bothered to look under the layers of incompetence at CPI and kept selling companies whilst ignoring the real work that had to be done to clean this up.
Capita did. spend a 7 figure sum on improving network Security just before they were hacked. They operate Ciso and Diso monitoring all changes. Much improved.
Silo management and a brutal Governance process run by Senior management. I had multiple conflicts in this area. Won as many as I lost ( Knowing the LAW and due process).
Don’t mention the Pension company I would sack all the management.
Not all management bad just a few select leaders
What adh1927 says is good news as there will be a lot of savings to be made.
By the way what was JL doing, watching Wimbledon, Netflix, playing Empire or just other playing games.
@trisor - I left 5 years ago, so the hope is things have improved. I have no shares in Capita, and work shyness affects a lot of companies. But, it is extremely demoralising when you have people looking out the window all day, or watching sport in the office.
I worked in IT, and there was no incentive for continual improvement, and there was no incentive for innovation. That is frustrating as a person who worked there. I own no Capita shares, so have no vested interest other than "How's my old employer doing". I have to say, it was a bit like the start of the fall of the Roman Empire when I was there as a number of issues came home to roost.
Yes, I left 5 years ago so a lot of this will hopefully have been addressed.
@Trisor -- Mind you, this was 7 years ago from adh's viewpoint - just as long as SK has been poring over the balance sheets of CPI and supposedly decided that CPI wasn't for him. I don't quite know of the current relevance to CPI's operations or the SP, but they certainly are symptoms of what needs to be flushed out at CPI.
It's not just people costs, but from what ADH says, also wasted tech spend (among others no doubt) that could be looked at. This is what Peakman at Shore Capital alluded to when he said AH will need to look under the bonnet to get to grips with the busiess. He and XW would've almost certainly not liked what they found when they looked under, but that is what they need to address. We'll see soon won't we?
@adh. This is outrageous
I have drawn this to the attention of IR . I’m shocked at this level of work shy incompetence all round
Agreed @Simpiles.
Everything at Capita was cluggy. As well as having to report to 2 managers who, in total, were doing the work of 1/4 of a person, there was very little room for innovation or changing processes, or automation. I was TUPE'd to a smaller BPO firm, with fewer resources, but at least they spotted that automation was a way to save on costs. They did it in a way that created jobs for the BPO, and allowed customers (mainly councils) the chance to cut staff numbers.
At Capita I was on a second-hand, old laptop that would take 5 minutes to boot up, and whose wi-fi would intermittently cut out despite being sat practically on top of the router. I swear they killed my eyesight because I had a very flickery screen that they managed to replace with an even worse one - so I had to work from the laptop screen. I worked in IT - Application Support and Development. There was no scope for development. Products were overlicenced, that cost money.
One thing to note is that there is a mass compensation claim taking place right now for the loss of data from the Pensions breach. It was little surprise that this happened, it was a case of when, not if, and which part of Capita would get hacked.
I have now moved to the aerospace industry where there is a Security Officer and a Security Team. Maybe these exist in Capita too - I never knew of their existence, which in itself is an issue.
The biggest problem was that everyone with any ambition and skill was promoted to a manager role. Some teams had more managers than non-managers, some managers were responsible for no team members, others shared team members meaning that some of us reported to two managers.
A lot of the above was obvious to a shop-floor worker like me, so I hope it is obvious to a new CEO - but he will have to spend time in the business. Quite often, when the CEO arrived at our office we would see fawning staff putting out balloons, getting the place cleaned, and creating an impression that everything was fine when it was not. Once the CEO left, it was back to cakes and quizzes and dress-up as a pantomime character days. The CEO would have had no additional understanding of the way that that office operated, and possibly countless others around the country.
I hate to see innocent people lose their jobs, but when you are sat next to someone who is watching Wimbledon for 2 weeks from a work computer, and opposite someone who killed the wi-fi by watching Netflix shows on his personal devices, then there are also problems at a non-management level as well.
Does anyone know the ratio of UK to non UK staff?