Member Info for BadgerB

Working for a shorter doesn’t count as personally shorting yourself - is that how you see it Mr. Disingenuous! 🤡

Worth noting, we’re talking about a trade update - not official financial results (FY25), i.e. guidance on revenue but not specifically on actual profit or debt level, also it is not a closed period for directors. Some people need to get their facts right!

"We're at a point where labour can go infinite. Labour can be scalable and labour can be available 24-7, 365, across the globe, on demand." Sameer Vuyyuru, Chief AI & Product Officer at Capita.

🎥 Hear more from Sameer in his conversation with Boston Consulting Group (BCG) at Salesforce's #Dreamforce and watch the full video to explore how we’re embracing AI across Capita 👇

https://www.youtube.com/watch?v=5UYqK-6N6ck

Kipp - CPI have second to none business process expertise & partnered with the best technology solutions on the planet, I think they’ll be pleasantly surprised by the service level improvement coming!

I reckon they don’t fully understand the tech CPI will inject into the contract backed up by the hyperscalers to transform the service level. Other views may vary.

Yesterday our Chief AI and Product Officer, Sameer Vuyyuru, joined Amazon Web Services (AWS) and Anthropic at their exclusive one-day workshop, ‘Agentic AI in Action: Transforming Public Sector Operations’ which brought together executives and builders from the public sector to explore how agentic AI is revolutionising operations across public sector organisations.

In his keynote, Sameer explained how Capita has evolved from delivering BPO with humans at the core and process at the forefront, to now blending human expertise with intelligent automation. He shared insights into how Capita is bringing together agentic AI and human coordination to deliver exponential value for clients in the public sector and beyond.

Key takeaways include:

📌Agentic AI is the cornerstone of Capita’s transformation: we’ve moved from manual, human-centric processes to a future where autonomous digital agents and human oversight work together to deliver exponential value. We’re taking a ground-up approach, mapping processes across all sectors to identify where agentic AI can have the biggest impact.

📌 The AI Catalyst Lab is our dedicated team that identifies, tests, and scales AI solutions. The Lab has surfaced over 200 real-world use cases, including high-volume recruitment automation and document processing accelerators. These initiatives are not prototypes, they are live systems enhancing productivity, cutting costs, and empowering employees today.

📌 Capita is ‘client zero’, using agentic AI to transform our own business before offering solutions to clients. This means we stress test AI systems internally, ensuring security, compliance, and ethics are embedded before deployment. Our expertise in managing complex processes for major UK institutions uniquely positions us to lead the AI transformation of the BPO industry.

📌 We’re focused on strategic outcomes: integrating AI into structured workflows allows us to accelerate service delivery, optimise operations, and achieve new efficiencies, ensuring scalable, secure, and industry-aligned AI solutions for our internal transformation and client delivery. Our AI Catalyst Lab’s initiatives support national AI ambitions, aligning with the UK Government’s AI Opportunities Action Plan to drive productivity and competitiveness across industries.

900p target on 12+ months seems reasonable : the 250m cost savings alone should be sufficient to enable mid term guidance of 6-8% operating margin (as noted in the recent Yellowstone Webinar). Even if you take the middle of that range (7%) based on relatively flat revenue in 2026 that equates to close to 170m operating profit ($2.4B * 7%). Subtract expected debt interest (could be ~40m based on current levels) less tax = ~100m profit after tax. With free cash flow & dividend reinstatement a conservative 10X p/e ratio multiplier could be achieved (1B market cap = ~900p per share). This doesn't even consider potential for higher margin / revenue growth (i.e. CPI showing success in realizing their bigger picture ambitions). DYOR

It was great to host Capita's Future Gov Summit in partnership with Civil Service World last week.

Capita Public Service welcomed leaders from across government, technology, and policy to explore how AI is already reshaping public service delivery. We heard from visionary leaders including Richard Holroyd, CEO of Public Services at Capita, along with industry pioneers from Transport for London, UK Ministry of Defence, Government Internal Audit Agency, Amazon Web Services (AWS), Microsoft and more.

“The Future Gov Summit brought together some of the most forward-thinking minds in public service, and it was a privilege to open the event and share Capita’s vision for how AI can transform outcomes for citizens. Thank you to everyone who joined us.” Richard Holroyd, CEO, Capita Public Service.

Well given the potential here I’d be more comfortable with 100K shares!, for now will have to make do with 60K.

That’s interesting. Rockwood Strategic held 4% of their portfolio in CPI in May, when net asset value of the fund was ~£116m, so ~£4.5m. Now they have ~£9m so it seems they have just doubled their holding. Follow the smart money!

Nice find Kipper.

Did they previously have a holding?, RNS doesn’t detail a previous holding. Seems to suggest they completed acquiring 5.6% on August 5th.

Nice endorsement on Capita’s soon to be released recruitment -as-a-service offering (partnered with Salesforce) : https://uk.linkedin.com/company/capita

Kipper, not sure about him being laid back - seems as laser focused as ever. Clearly the Ofgem matter is a frustration though

Interesting input from AH..

https://impact.economist.com/new-globalisation/introducing-the-new-AI-agents

Savage - I'm intrigued, can you be specific on your following comment? I cannot see any rolling back on forward guidance at all.

'Actually the TU this morning did contain subtle rolling back on forward guidance if you're careful to read what it actually says (rather than what you want it to say).'

‘Talk of bids, takeovers , £6 share values in my opinion are totally underestimating the potential of this company that Adolfo is looking to realise.’

Well said Culley, couldn’t agree more.

That was my understanding Trisor, apparently it allows for greater flexibility for dividend payments.

I'm sure others may have a deeper grasp.

Agreed Kipper, also note :

REG-Capita Plc: Confirmation of the cancellation of the Company's Share Premium Account

13:01

13 June 2025

Capita plc ("the Company")

Confirmation of the cancellation of the Company's Share Premium Account

The Company is pleased to announce that, pursuant to an order issued by the

High Court of Justice in England and Wales (the Court) for the cancellation

of the amount standing to the credit of the Company's share premium account

(the Share Premium Reduction), the order of the Court confirming the Share

Premium Reduction, and a statement of capital approved by the Court, were duly

registered by the Registrar of Companies today. Accordingly, the Share Premium

Reduction has now become effective.

Details of the Share Premium Reduction were set out in the Circular containing

the notice of Annual General Meeting published by the Company on 24 March

2025, and the Share Premium Reduction was approved by shareholders of the

Company at the annual general meeting of the Company held on 28 April 2025.

The Share Premium Reduction does not involve any distribution or payment of

capital by the Company.

The Share Premium Reduction has not affected the rights attaching to the

Company's ordinary shares and will not result in any change to the number of

ordinary shares in issue (or their nominal value).

Following the Prime Minister's speech at London Tech Week setting out further AI initiatives within government and further details on AI investment in the Chancellor’s Spending Review, The Social Market Foundation's new report "Smart government", sponsored by Capita looks at how #AI is being deployed within the civil service, and how recent progress on facilitating AI adoption in the public sector can be sustained.

The report notes whilst the direction of recent initiatives is encouraging, there is scope for more action on the Whitehall Accelerator Programme, the Transformation Fund, and providing updated central AI procurement guidance.

Richard Holroyd, CEO, Capita Public Service, commented: "AI has the potential to deliver ever-more innovative public services for taxpayers, and at Capita we are already implementing this for our clients. Agentic AI offers a transformative opportunity to streamline complex processes, reduce administrative burden, and enhance citizen services. Crucially, we need Government to contract for it. SMF has highlighted how so many Government Departments could benefit from the AI revolution, and we welcome the opportunity to work with government to drive the benefits of AI into every process we deliver across the public sector.”