Member Info for AdamWoodman

I fully agree theoldtrader which is why I’ve voted against. I understand how consolidation works and respect the views of other investors but don’t think they should be messing about with this right now and should focus more on driving up revenue and getting more contracts to increase free cash flow faster. If we’re getting stronger than we were a few years back then why can’t the share price go to 30-50p again without consolidation? I believe the consolidation plan should be scrapped and they should focus on other ways to increase the price. The argument of not being looked at for being a penny share is weak. Don’t they think companies will check all this before investing? We need a strong balance sheet not games with the share price

I have considered whether the company needs cash but I don’t think they would say we’ll be cash flow positive by the end of the year if we had cash flow issues. But either way we need some good news soon. I believe the sp should be over 25p really

I don’t want to sound negative but that thought did cross my mind too. That’s why I suggested they should delay the consolidation until the company’s in a stronger position.

Funny how Savage understood what I meant but decided not to say anything. 😂

Hopefully we’ll head back into the ftse 100 one day

Thanks everyone for the clarification. That’s starting to make more sense now. I was just finishing work for the evening (at Capita) when I read the news saying 31p a share and went into panic.

I’m sure AH and the team know what they’re doing though.

Thanks Culley01. Are you saying we get £2.10 a share? Sorry still not fully getting where the 31p came from.

Thanks Savage. A lot of news reports are saying 31p. I’m trying to make sense of it. Hoping it’s a mistake. Awaiting confirmation from Capita. (At least there’s less drama with Vodafone)

I haven’t had official confirmation from Capita yet but the news reports say that we’ll get 1 share for every 15 and that each of those shares will be worth 31p. That doesn’t sound right.

I’m confused. The news reports are saying the new share price will be 31p. How’s that? We were thinking it will be *15 to make it eg £2.10 for example. How can we get one 31p share for 15 current shares. Sorry if that sounds dumb. I’ve looked online and have emailed capita but can’t see how that will benefit us if we’re only get 31p for 15 shares

I wasn’t in favour of consolidation anyway as I felt the price could increase faster as it is (if we get some good news about those 5bn in contracts we keep being told about). But we were previously thinking the price will be increased by *15 upon consolidation. If the price is increased to 31p that’s not even *2. I’m baffled about how that will help current shareholders. Doesn’t that mean we lose money from day 1?

Great to see strong faith in Capita. It’d be good to see some upward price movement soon though. Any ideas on predicted price targets post consolidation. Are we going to be another Rolls Royce or not as dramatic. We’ll need to get some bigger sales though. These 1m contracts aren’t going to do much.

We need some good contracts to show that revenue is increasing. There were a couple of articles about Capita today and they were all talking about whether Capita can increase earnings.

Thanks Aimmaser2018

Yes I get that part. I was more concerned about whether the shares could increase by *3 or *4 so we can recover our investment if the need arises as there’s uncertainty about whether the price can go to £5 or £6 from £2. In the short term it could even drop to £1. But I appreciate you and the other guys explaining it. I’d be good to see some upward movement before consolidation to 20p + which is where I feel it should be.

I totally get what you’re saying in terms of percentage ownership etc. and that consolidation won’t directly affect anything. But indirectly, I’m talking in terms of target price to break even if I needed to sell in future. It’s more likely to go to 40p than £5+

They’re not worried about consolidation as they’re buying at a much lower price. Buying at a higher price means it’s harder to break even in terms of getting your capital back. But yeah the price should be 20-22p. Might be to do with the global downturn. Hopefully should pick up again soon. Most of the broker views etc for Capital are positive.

Share price should be over 20p. Possibly being held back by the global downturn. I don’t think consolidation is the answer. Shareholders who bought at a higher price will never be able to recover funds. Investors will also see it as weakness. We need to increase the price some other way, then maybe do a consolidation next year.

Consolidation aside- I can’t understand why the sp is so stationary. They may not have been brilliant results but they are heading the right way. I was expecting 16-20p at least? Maybe it’ll pick up when the overall market recovers from Trump tariffs and trade wars

I’ve been through a few consolidations in the past and it can go either way. Usually better if it’s done from a strong position which is why I think we should wait till the end of the year. Barclays for example predict the 12 month share price to be around 40p. If consolidation is done then, the overall share price will be consolidated higher too. If it is consolidated before it goes up, it could possibly be seen as weakness in my opinion. I know some of you may disagree but that’s what I think is a possibility.

I’ve done my research too. Not relying on you to do it for me. I understand the basics of Consolidation. Just trying to discuss with fellow investors as I can’t find some of the answers.

Would trading pause when the shares are being consolidated or would it be the case of eg all shares owned at the close of x date will be consolidated?

Personally I understand that it’s for the long term benefit of the company but don’t feel this should go ahead until the share price recovers more which is likely to happen by the end of the year anyway. I expect they may also be wanting to reduce shares, ready to pay a dividend next year but delaying this till year end will also help the company as the sp will be consolidated higher and will help current share holders in terms of the money already invested.

Thanks Trenners for your explanation. I’m not trying to upset anyone. I’m just worried that the price won’t go to £4-£5 so I’ll never be able to recover my initial investment. It’s not the % of shares I’m concerned about it’s whether I’ll get my money back and it seems the price won’t go high enough for that to happen. Serco for example is under £2