Member Info for burgeseb

Go Capita Go. Touch 15 p by EOW

Savage - Again lofty words like 'deep trouble' without giving the basis. Every Company has to navigate economic conditions and everybody knows that current economic conditions are not so good for Capita. But imho we have reached the bottom. If any movement it will be on upside. This is because the Company has good value - its revenue slide in 2024 is impacted mainly for the Capita 1 disposal whose Revenue is not consolidated for three months. Margins in 2024 are expected to increase by 0.5 % despite the fact it will recognize one-time £50 million as restructuring costs and not all benefit of cost savings has accrued in current Financial year. Free CASH Flows (before considering sale of Capita) of £120-£140 m is certainly positive development. If the Company grows by high single digit next year and Cost savings benefit accrue with no restructuring costs then one can see margins further improve by 2% to 3% and free CASH flows of £350 million. One can expect Company resuming dividend payment / buy back program. So by next year this time stock wil reach 40 p or even more.

Savage has not understood the results and his opinion is based on market shorts and not on basis of Financial / Business fundamentals.

Savage_Keyboard - you have such pessimistic and pathetic outlook to make heavy loaded statement that Capita is in dire trouble without giving any reason for your views. Currently all mid and small cap stocks are dropping because of uncertain economic condition and so is Capita. What makes you say that the Company will fail? The Company has achieved what it promised - it had informed the shareholders (since Jun 24) that Revenue will be 8% to 10 % less then previous year. The reason being non-consolidation of Revenue of Capita One which was sold upwards of £200 million. The Company is successful in reducing cost by £50 million and this year the cost reduction would be £100 million. The reduction of cost is by leveraging on outsourcing services to cheaper destinations like India and Poland and use of AI technology and therefore not compromising on Revenue. Though CASH from operations is negative by £50 million mainly because of working capital cycle. In a Company with negative growth it is always the case. From £200 million some capital expenditure (less then £10 million) might have gone for AI and other technology and therefore it is either lying as free CASH or some part of it is used to pay off existing debt. The Company will not require any further capital to manage operations and it will be careful not to bid for low margin contracts. The Company will have Profits and positive CASH from operations from 2025. Expect modest gains of 26 p from current levels by Jun 25

Qnard - don't be so naive. Harry has been selling misinformation all these years and you seem to believe him. If you believe 75% project IRR number and current valuation per KEFI share at 11.5 p (25 times current value) then you need to ask question is it true? Be prepared for another round of capital increase - this time £30 million before Mar 25.

Today I realised why I invested in KEFI - it is because KEFI is one of the few UK stocks shown in the ticker in CNBC channel and after reading Harrys lofty promises I did make an investment. I am very sure that KEFI is making payment to CNBC for the same

In my humble opinion there will be zero realisation from Sale of JV to Saudi investors. It will be given on platter to them to set off against the outstand JV cost which KEFI has to pay. All these years KEFI has been reducing its stake by netting off against outstanding JV cost. So do not be hopeful to get any funds out of Sale of JV.

Https://metro.co.uk/2025/01/08/itv-facing-cash-crisis-amid-wave-coronation-street-emmerdale-exits-22316095/

Refer to above news. My worry is that they may goin for Rights issue to strategic investor which would be a disaster

My assessment on 3 year (post July 2025 i.e. FT Jul 28 to Jun 29) outlook of Revenue should also be correct. In my view the Company should come out of AIM market and start trading in Main Market. It should also explore the possibility of listing on NASDAQ. UK investors are very pessimistic in their investment approach. Just because the Company had to deal with onetime cost of acquisition (around £37 million) the price of share fell by 2/3rd. US investors would not bother on short term losses. They see real potential. Yougov business model (data analytics) has huge potential and the consumer data it holds since 2002 would be worth in gold.

There are around 40 global Companies with market capitalization exceeding $100 Billion. 28 of these Companies are in US with 5 of the Companies having valuation in Trillions. FTSE has only 4 such Companies and European stock exchange combined have only 5 Companies. If 28 of these US Companies were listed in FTSE then only 10 of these will have valuation exceeding 100 Billion and none would have valuation exceeding $500 Billion.

My suggestion would be to Buy and hold for next 3 years. There may be a potential buy out offer which BOD will refuse if the valuation is less then 1500 p (i.e. 4 times current valuation)

DV Harrison - if you choose to live in fools paradise then it is your choice. Harry lies through his teeth. Mining is not about digging a hole in the ground and extracting gold. Lot of challanges have to be addressed and time and again Harry has shown that he is not capable to handle the challenges. It is time he moves out of his role

You should consider buying at this levels for the following reasons:

- Previous year (YE 31/07/24) the Revenue increase was 30%. This year we can expect the increase to be atleast 40 % for the consolidation of full years Revenue subsidiaries acquired in prev FY.

- Expect PAT of at-least £50 million (Prev Year Loss of £2 million because of huge expense our of cost of acquisition and other related costs)

- There will be no dilution as the Company holds good balance of £70 million as CASH and CASH equivalent. It may need some CASH of around £20 m to £30 m to make payment of short term loans due this year which it can overdraw from Bank or make on the basis of CASH generated from operations

The stock is a multi bagger. Company is due to announce its results on 02 Feb and expect the share price to increase to £450 or even £500. By Dec 25 the stock value will be between 700 p to 800 p. In long term (next 3 years) the Revenue is expected to increase to £ 1 Billion. All my assessment based on the analysis of business, the business model of the Company and scope of growth based on the fact that its share globally is only 2 %. So huge upside potential especially in Americas

Please Note on following point in the update for today:

§ the remaining US$30 million is being finalised with certain Middle Eastern and other sectoral investors, as the Company looks to conclude the optimal financing scenario from interested parties.

This means that there is going to be another round of rights issue and this time to the tune of $30 million further diluting our rights. If this is going to happen we as shareholders will have dilution in our shareholding and share price may fall to 0.35 pence. This is absolutely pathetic. Harry lies through his teeth and he has being doing this from decades - all this talks of value per share being 11 pence is nonsense. The only way the Company can command value (if any) is by sacking Harry and the current CFO and bring a new team in their place

Please also remember that the daily volume last week was very less as compared to normal days. The real volume game will start from tomorrow and short positions make come under pressure. Expect the price to touch 16 p by end of this week

Inefficient Harry should be replaced immediately. Have made a wrong choice of buying this share at 0.72 p but have made a wise decision not to invest any further. As they say in investment world - a good investor will not chase bad money with good money. No more exposure to this badly managed Company

Like always Harry is buying time till Mar 25. My view - Even when loan is received Harry will use it for making payment of disclosed and not disclosed liabilities on books, make payment for outstanding salaries / commissions and back to square one - again issue new shares diluting shareholders value and inform on potential of gold mine and issue assurance that new debt is on the way. This will go round and round for another 5 years. Harry has always done that - he has fooled all the people all the time. Till we get rid of him things are not going to improve.

My view is to vote Harry and his team out from management. Too long shareholders have been fooled

Some people are delusional. Wake up. Though Harry is very poor at business he is very good at fooling people. Loan is not going to happen and only thing one can expect is empty promises from inefficient and cheating Harry. Even if the loan happens funds will be distributed between Harry and his cronies and back to square one

Stebo and his friends - wake up and smell the coffee and not live in denial. Harry spin doctor will again give a twist by diluting the share price to 0.30 p and you people will still fantasise that approvals are coming and share price will zoom. The fact is that even if the approvals are received share price will not go beyond 0.70 p. My observation is that every time when share dilution happens Harry plants a story on optimism so that there is some increase in share price before the dilution. He will keep on doing this till share price reaches zero

This share is one of the underperformer in this line of business. Huge cost and losses are seen on account of senseless hedging. Management good in making presentation slides but when it comes to delivery of operational and financial performance it lags behind peers

The share price will reach 550 p by end of Jan 25 and 850 p by Dec 25

I don't see the share going below 17 p tomorrow or in near future. Capita is a going concern with all negatives and risks reflected in the price. With YoY and QoQ better performance this share will move forward - if not exponentially but at steady pace. By March the price will cross 25 p. Price is depressed because of increase in shorts but it will slowly peter away when results show potential future growth

Stebo - what I meant by partnership is shareholding of another gold miner with controlling stake. PW Mining is just a vendor for KEFI. When funds are exhausted you can expect another round of rights issue to vendors including PW Mining. These vendors will resort to selling at any price because they know the reality of operational performance on the ground. This is reality. Adams have always given us false hope including myself who is a shareholder - purchased at 0.72 p. Will come out asap when the price improves which I expect to objectively move to 0.55 p