RE: CPI - What to look forward toToday 00:42
" 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.