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"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.
@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?
Exactly right.
It's been no different to a local authority top heavy with management and understaffed on ground level, hence reduced productivity.
Typical work from home Fridays, log off early, paid 100k for your troubles.
They have a hard work ethics in Spain and probably most other countries, but not here.
Big cull is needed and amended working conditions and job evaluations desperately needed.
"whilst it is sad to see real workers lose their jobs not so for senior management that wrecked this company!"
@simpiles - this is why the excess flab in the cpi management tiers need to be cut. another poster, divandaydream (also ex-cpi) said he's been hearing of senior management levels being trimmed. there are probably too many unproductive moats existing with *** abandon around cpi, and those are the ones that could go.
i'd think ah and xw will be prudent about taking the cleaver to unneeded positions in the company, but after years of fiefdoms built into that business they have to take on these unrelentlessly. good on ah and xw...keep the cuts coming!!
I do understand the changes that are taking place. I also understand What was! What is! and What will be!!
I have invested in Capita and hope to get a good return on that investment.
Do I know everything No!
I don't expect AH to know everything either!
I do know many companies and Governments depend upon Capita, so although it seems risky it’s not really!
I am surprised ar some of the smart people here! You know who you are!
There are also a few dimwits!
Such is life!
Why would it matter Simpiles - if you have left, would be great to hear from the inside more on your opinions of what is going on, on the ground.
Hi Trisor
Unfortunately that would give too much away!
@Simpiles-which one -were or are?!
Yes!
Simpiles were you/are you at Capta?
The main problem with Capita was process! Management insisted on manual process, this was enforced by brutal Governance. As a high level techie I spent 5 years fighting the system. Capita were tied to strict SLA’s with penalties. As someone who believes in automation I fought this every step of the way. Thats the reason than the CTO and his senior management team have to go. AH believes in Automation but he has to be careful in deployment so as not to break the SLA’s. Automation is more than AI.
Automation will save Capita a lot of money and add to Free Cash Flow.
Whilst it is sad to see real workers lose their Jobs not so for Senior Management that wrecked this company!
My point is more geared towards what the impact will be in the medium/long term losing those people. Fully appreciate losing money each year will end one way - and that ain't good. But saving money and maintaining a long-term viable future has to be done right.
If all the cuts have no impact upon ongoing deliver/governance/long-term benefits etc then great.
Wednesday - whilst I certainly agree no one losing their job is a laughing matter. You have to accept that as a Company they simply can’t survive making losses and need to react accordingly… but never a subject of glee
Have been broadly supportive of Capita - quality recurring government contracts 2.6bn turnover and a MCAP of cicra 220m. Coupled with the fact that debt has been reduced by the sales and is (currently fairly low - excluding leases).
However Savage is right, over the last 7 years the promises have failed, years ago it was said the transformation had completed (even that was delayed by covid) and bit-by-bit the actual date of FCF (and everything that comes with it in terms of returns to shareholders) has been pushed back. The board IMO has failed us on their stated objectives (although I suspect Jon L did steady the ship).
Which is why I presume is why Adolfo has been brought in. What concerns me now is the joy on here of making 100m cuts, some of which may be fat, (but surely the easy cuts have been made), if you cut too far there will be negative results at some point, either near or longer-term.
I worry this may well be in a downward spiral now - hopefully for LTH I am wrong. For transparency, I have a small amount, in loss but not by too much (am comfortable to wait and see how this goes).
And that's a fair point Culley. I'm pretty heavily invested and about 30% down even after slowly averaging down in the past few weeks, and I can see why someone would wait until the update is out and/or even the H1 release in August. I still believe in the CPI story under a new management who have a pretty good track record and have made the right noises so far - but it's still a bit of a show me story until they actually land the turnaround. I have no problem with that assessment - I don't believe in wearing perma rose-tinted glasses.
If I was not already heavily invested I would sit on the sidelines to await the June report & signs of an sustainable rise in the SP. Even if I didn’t get in at the current levels I would still be able to invest at under 20p which I suspect is lower than most holders so I do understand those waiting & watching
I've been basing my investment decision on CPI's results these last 0-7yrs and UK+USA+EU macros... Plus hearing opinions views of others, keeping an open mind should they have anything remotely convincing to counter the available data out there... Anyway so far I'm just not seeing anything persuading me CPI is a good investment yet.
Savage - Really? I’d beg to differ. If you’re basing any investment in CPI on US macro, it’s perhaps not the share for you but will leave you to it
@Trisor
Like
Broomtree - Completely to the contrary... I was super clear about my motive... I have some cash to invest and thw two stocks under my consideration were BT and CPI - I chose BT but I still have more cash... I'm just not currently seeing anything persuading me that CPI is a good investment yet. It really is that simples and attempts by some on here to label my motive as anything else are fanciful.