Capita Share Chat (CPI)

Looks nailed on imho

That's more like it!

That's more like it!

Monthly share purchase scheme by Capita staff.

Max £150 per month!

Yewould be part of plenty of execs pay package.

It’s a monthly thing

A rather modest purchase (or part of remuneration package) by the current CEO and CFO.

I would expect that Adolpho will be running a charm offensive and will be meet all the key institutional shareholders and brokers to sell his vision for the company and how the the partnership with Microsoft will be leveraged to cut costs and create business opportunities.

Markets tend to look forwards rather than backwards

I think there’s a lot going forward that will be very positive

That’s why this will be a great opportunity from these levels

Yes it’s been messy & a difficult journey

But I feel that will all start to disappear in the rear view mirror

Let’s see

I think the FY results will be more of the same, as forecast at HY, which the market should be aware of by now.

Just a guess but possibly a bit worse even, given the sudden need for further cost saving measures announced just a few weeks before.

I'm hoping that the first quarter TU next year will show Improvement, and this will be reflected in the HY update next August.

Hopefully the Adolpho factor will improve sentiment and trust at least until FCF is consistent to allow for dividends.

Capita has sold off non core businesses and reduced its debt significantly to a manageable size.

It now has a core business with revenues around 3 billion a year that it can focus on.

The sales of non core businesses brought in a lot of cash and I believe those businesses will do well with their new companies.

As was posted earlier having a business with reliable £3 billion a year revenues and customers that both renew and return because they can’t get the level of service we provide elsewhere is the heavy lifting. We have somewhat of a moat in that regard.

We have multi year contracts with reliable revenues. Now, we have to use that position to cut costs and boost profitability.

We have already started cutting costs and embracing AI will reduce costs further. That’s why the collaboration with Microsoft is important.

Our new CEO is the right man to take all this forwards and take us to the next level

All of this is why this is such a unique opportunity

Imo

The issue with CPI is a matter of trust, no one believes the BOD after being lied to and let down time and time again, too many people have been burnt by this lot.

Not sure why people say there is very little debt, CPI issued just over £100m loan notes at just over 10% only a few months ago, these need to paid for.

It will turn if/when there is a decent set of results with some decent profits without the need to wheel out more one offs to cover up the real picture. Also a dividend is required a company without a dividend is like a boy without a winkle (to paraphrase Nursie in Black Adder), OK when young and growing but not much use latter, in the end it is why people own shares.

Hope next set of results is a game changer instead of the jam tomorrow given to use for over 5 years.

"Agree about the timing of a dividend. As much as I / we would like to see a dividend paid in 2024, I realistically think it's 2025 before we see one." This is JL's thinking too. IMO. Adolfo may be a different kettle of fish and given how he performed with SDL and got that sold for a great valuation, he must be a lot more market orientated than Jon ever was. Jon probably saw the restructuring as a last genuine legacy he could leave behind (ignoring all the downsizing he did with selling assets) that could eventually set the company on a sustained path to profitability and FCF.

I won't be surprised if more layoffs happen after Adolfo takes over in 2024. That's exactly what is needed to pivot to shareholder returns from the current directors/management pocket stuffing initiatives.

HHH81 - exactly- could not agree more

Agree about the timing of a dividend. As much as I / we would like to see a dividend paid in 2024, I realistically think it's 2025 before we see one.

@Seagul. Dividend seems far off at the moment based on what we have been told previously but Im pretty sure they will do it as soon as they can because that will create a great deal of interest in the brand

Trenners -if you go back to 2014 odd it was £12

On paper debt is much reduced. Loss making contracts have been expunged , renewal contracts. There is a clean slate here . Cost savings hit the bottom line in 2024 and I assume there will be further savings from property matters . Use of AI should help win more contracts and we have someone decent from Amazon coming in. So you virtually have a debt free company with an amazing order book and a collaboration and orders for an approximate 5 year horizon. I would be expecting a bid well before we get to 1.70 Trenners. My take . DYOR and best of luck

As somebody who bought Capita shares @£2.80 (I still hold them) anything north of where we are now is celebrated by me, even £1.70 ! Joking (?) aside, as I have said several times before, the payment of a dividend changes everything. The past will be forgiven/ forgotten and investors will flock to buy as the share price rockets back up. Or at least that's what I keep telling myself.

Will the latest sale be booked in the figures for this year or next?

Is it investor apathy (that is holding this back) - or is it that the city have a long memory and a lot of people lost a lot of money buying Capita stock as it plunged from £6+ to 15p.

I think the city is still licking it's wounds but I do agrees that the turn around looks complete, a solid revenue pipeline is secure and cost reduction (by whatever measure) will see this rocket as profitability returns

This was £1.70 pre COVID and there is absolutely why it shouldn't return to that level ....

The question is - how many of the current holder will still be holding (or even alive haha) when we reach £1.70 again!

If we did reach £1.70 - my 600,000 share holding would make me a millionaire Rodney!

Lordy, I see your point, but.... the attraction is if you have £3billion of revenues per year (arguably achieving the hard part of any business) the issue then becomes cost control / efficiency / reducing debt / implementing AI etc.

If you make a small dent into any of these areas the profitability (FCF, PE ratios etc whatever measure you wish to take) goes through the roof very quickly. Capita is still priced to fail, when it seems that the debt is under control. Costs are being lowered (redundancies) and contracts still won at a good rate.

I can only see it being investor apathy towards Capita as to why it is 20p, given everything that has changed for the positive since Covid. Interest rates are obviously a lot worse, and Capita has been sensitive to these. Whether or not that is warranted who knows.

My view is, when they can prove even the smallest profit and dividends are talked about, the share will rise very quickly to £1. But we will need to see the figures on paper first, rather than speculation.

FAO Chiefofchief and anyone elase who has an opinion on why the price is low. (Chiefofchiefs wrote - "Looking at the fundamentals this share is hideously undervalued. Comparing to their peer group, Capita should be trading closer to £1 as a minimum")

Can you please explain the basis of your price assumption and who would you put in the peer group. I'm trying to understand how you think that CPI is undervalued so much?

The fact is that the company is not making a net profit, its still has significant debt, its consistently economic with the truth when it reports and has a habit of successfully undermining any good news with yet another drama or issue that is challenging! This is a genuine question.

I'm currently long around that volume ave 19p

Some investigation apparently

Well someone is confident enough to buy 200000 pounds worth.