RE: Aimless22 Nov 2023 07:49
Im short, the news of redundancy is never a good news. If a company was growing, they would deploy the excess staff on other contracts to uterlise experience and save training cost etc capita once mentioned they were finding in deficulty in recruiting for higher roles and cost of recruiting specialist roles were higher. But now they're getting rid of them. Soon theyll be recruiting them back on higher wage. What the market failed to understand, the TU isn't expected to be good as highlighted in hy1 as its more of the same. Yesterday's rns meant theirs exceptional cost of £27 m now have to be factored on top of what many was expexting before yesterday's rns. Which makes upcoming TU likely to be not very good imho. In addition, I feel capita is trying to bid for contract at low cost compared to competitors to win the tender with lower profit margin and then squeezing staff to eeek out extra few staff by reducing head count. This is only going to lead to unsatisfactory kpi targets and fines for missing targets. All in my opinion therefor still see 14p on results as profit likely to be hit £27m more than originally expected imho gla