Capita Share Chat (CPI)

Agreed Kevin the win rate has reduced due to Capita being more selective in its bids picking higher margin opportunities hence the significant increase in margin from 3.1% to over 4%

4% margin on circa £1 billion revenues with contracts that run over many years and high renewal rates is a great place to be imo

I believe this will double or triple and this is backed up by current disposal valuations such as Capita One imo

Massive opportunity at such ridiculously low share price IMHO

Now that we have debt very much under control, transparent multi year revenues with increased margins, a clear strategic vision for integrating AI as well as cost reductions, the current valuation is imo primed for a massive re-rate.

It will.be interesting to see how much of yesterday's fall was US related versus Capita related.

I see after the initial sell off, and after AHs presentation, the SP recovered to actually be UP on the day ... And then the rot set in and we had a downward spiral for the rest of the session.

I'm hoping, after a weekend of reflection and the US selloff abating, we will quickly recover the lost ground next week.

With those results then no way did the SP deserve a 12% basting .... and I am confident sense will prevail soon

Capita's forward EPS Growth is ranked 2nd out of 49 companies in the Professional and Commercial Services market. Am of a mind to grab another chunky slice of the cake next week.

Really interesting presentation and great hope the future.

I would not be as underwater as I am today if it were not for that utter crap JL spout Ed about the turnaround being complete but with an average of around 23 hopefully will make some money out of this in the next 24 months

If it's any consolation Trisor, JL is much deeper underwater than you, me and Kipper who all share an average of 23p p/sh. I'm planning to average down to 22p per/share next week as the 'Green Shoots of Recovery' are clearly perceptible now and I want to 'Have my cake and eat it'.

No doubt many others share a similar average so imv are 'Sitting Pretty' and very likely to double or triple the value of their investment with a little patience. Could well turn out to be a multi-bagger in a few years!

I would be interested to know how much skin in the game the main directors have? Can anyone help. Ch, CEO, CFO, COO….

Skin in the game!

Old board very poor! New board have bought in well! Pablo bought even before he joined the company! No worries there!

Yep, that's me on circ23p bubbles. Something that i posted the other day re; Capita One sale. Now, i've had my abacus in action and need help with my sums folks. If Capita Group sold a part of the whole damn company for £207m when the Market Cap was c£250m, how the jiggery can what's remaining only be worth £43m? And, why is it (if i am correct) that the Hacks and Analysts aren't shouting it from the rooftops?

Before you all bellylaugh at my sums, please can i ask that any answers be on a Baldrickian level, so i might have a chance of understanding......

I HAVE A CUNNING PLAN. Sit pretty on our pile of Cpi shares and wait for the market to 'Wake up and smell the coffee'.

HaHa bubb. Am just sat in my home office trying to work out what i can sell to pile further into CPI with a TP of low 16's. Some of my VOD are into profit, about £140, and would release c£3,140 for a topup. Rest of p/f are in profit but battered down on Friday, so loathed to sell.

Would anybody like to buy a kidney?

Okay, while we're in Baldrickian mode, I still can't figure out why Capita One was sold for being 'non core' when most of the things it was listed as doing seemed to encompass our ongoing future public service business?

Excellant comments 'old' chap. Am still excercising my grey matter to see if i can raise some cash for further topup. Think my buy at 16.91 on Friday might have to suffice as i see a 'bounce' coming Monday(ish). P/f a whopping £7,800 down (on paper) in 2 day's, so feeling a tad glum at the mo......a pittance for some here, but painful for 'ol Kipper

You could always borrow from your bank, Kipper9, for 'Home Imprrovements'. Not recommended by most, though with CPI at these levels, it would probably pay off I think. LOL

Ouch bubb, not at my age thanks. Not even Equity Release. Look, i can do a fantastic deal on the wife's liver if interested. Mine is well bu**ered with way too much vin rouge sadly. Maybe i'll try the Dark Web.....

No thanks! Kipper9. All of my organs are functioning perfectly,( Apart from one according to my wife).

PJT12

Non Core

As AH set the product and service set going forward is a mixture of AI Cloud services, Cloud applications, Integration into current customer network, Voice and Contact Centre services. A solution framework in the background with preconfigured solutions (Design once sell many times)

The Software Capita sold does not fit within this business model or would require a lot of work and money to do so.

This reduces costs increases margins and simplifies Governance! A hat trick of services!

Simples _-Thanks for that info..

Echo that; you understand what's happening on a completely differant level to, well, most of us. Being ex-cpi......

Simpiles, thanks for all your responses today, a real asset to this board and our understanding 👍

I believe i have 'joined the dots'. SCP?

I was thinking that prior to any company results the 'serving' BOD or exec team are not permitted to make purchases of shares. Now, it will be interesting to see next week if they make further purchases to those already made. The SP is roughly at the level that they last bought. The drop off from c22p to 16's may be tempting plus it would send another great message of confidence.

Nice to see strong clear and positive messages

…..the company has made strides in improving its adjusted operating margin from 3.1% to 4.5% and has a positive outlook with continued efforts in efficiency and strategic focus on growth sectors.

@sharehead - I just think we all got robbed on Friday as the SP was played ....

So - we focus on driving down costs and increasing margins (by being selective on what we bid for and also introducing efficiency in what we already deliver). That's precisely what's needed.

It's pretty obvious that revenue will dip if we are more selective and refuse to bid for poor quality / low profit business.

Yet the drop in revenue was used as the excuse to drop the SP by over 12%.

I thought the results were good and the execution of the strategy was astounding.

Also - coming from an IT background - AH understands that productisation (rather than creating individual bespoke solutions - which is what we did in the past) will deliver the road to much increased productivity and profit.

In productisation you develop a single solution/ product and then sell the same thing over and over again. Absolute genius!

Friday was a bad day for the markets and I'm expecting strong rebound for CPI this week as I honestly don't know what else the City could have expected at this Half Year stage.

Another example of the SP being totally disconnected to what the company is delivering. I too am hoping that AH and the team buy more shares this week to underline their confidence in the winning strategy.