RE: Out of therapy18 Dec 2023 18:44
Cost of capital has dropped, mortgage rate has dropped, with Harl, its about negotiating finance rate which is ongoing which would benefit aim market to raise additional funds to survive and grow. Capita has already increased financing. The issue here isn't cost of capital dear. Its about revenue growth and profitability. Growth below inflation, profitability swallowed up with exceptional cost such as cyber cost, disposal cost, redundancy cost. With no further portfolio division to dispose to reduce debt, the short fall is being achieved by reducing headcount to save cost and increase margin as there's nothing more to dispose. Reducing head count should have happen 5 years ago, alongside disposal of non-core assets. People talk of AI, its in early development stage and I'm sure many tech business will all be involved in AI implementation. All in my opinion