RE: More positive good news on linked in π2 Mar 2024 11:24
Exactly, company raised through RI, covid hit, but most of the contracts capita hold are government contracts that are revenue guaranteed therefore capita should have done far better during covid eara than most companies whose revenue is public driven. Yet the company used covid as a reason for the losses.
The company used portfolio division to sell off to reduce debt then weridly taken on more debt through loan notes
Now the company don't want to use further debt, so are cutting staff to release cash.
If the results are any good, the unions of capita, likely to be an uproar to not be a real living wage employee. So clearly they have to justify not paying real living wage with bad results.
Bad results with not want to go backwards by increasing debt, the cheapest option is to tap into shareholders which would help keep cap on the debt, give it sufficient working capital and reduce future interest payments if they took additional debt.
So for me, the company is trying to stabilise yo make sure its going concern than benefiting the shareholders
Imho