Member Info for Culley01

Very encouraging- 4000 quotes in 2 weeks is impressive- looks like were going to make it by end of June although I suspect there will be various loose ends & adjustments to make over the next few months

Let’s hope that all the awards are resulting in profitable sales & increasing turnover which will show up in the August results

I don’t think they stipulated a date - simply that it would be after completion of sale of contact centre which is expected by August.

Of course we have half year results in August so I would expect them to be between August & December update possibly September/October

I think there’s room to reduce debt & pay a dividend

10p/share is only £12m which should be easily achievable for a dividend early next year year

I don’t think FTSE 250 entry will make any difference to the SP.

I know in theory that there is a wider appeal & funds covering the 250 should buy in but it doesn’t move the price much (& didn’t when CPI were last in).

The FTSE 100 is a different matter but I think that’s around £3-£4b

To put this in perspective only a tad over 26p in old money

Plenty more to go - we were 40p not so long ago & it’s a much better company now

The August results are going to see a further push ahead

@Raffles it was an interesting read & basically came down to the AI interpretation that the recovery is all smoke & mirrors or do you believe it’s real. Well I & other PIs with a load of IIs believe it is real so fingers crossed & we’ll all come out OK

There does seem to be a gradual shift to overseas staff where talent/ work ethics can be had for less money than in UK

I meant public division £1b NOT £1m & pensions £300m NOT £300K

At the risk of public derision I’m going to back YTee’s positive stance with the proviso I have no idea what short term movements are going to be.

We have a company whose public division is worth around £1m. The pension division is growing fast with high margins - say £300K although if it keeps going like it is this could increase substantially.

All this is without the effect of the AI driven marketing/business that we have yet to see mature (currently we’ve had the benefit of cost savings but not the growth).

So we have a business worth probably worth 4X current values (hence Cannacord’s conservative estimate of £9) with much more to come.

As for timings I’ve no idea but 3 years max.

@Adam Capita said they wanted to finalise the sale of the contact centre before releasing revised figures, which although slightly frustrating does make sense

I think the August results ( & the delayed June update which I suspect may now be September) will give a massive boost to the SP & I would hope for closer to £5 with £6+ at December update

@HH I would hope that with the long term contracts that Capita have with government there would be some pretty hefty penalty clauses for cancelling a contract mid term

@Jordi from what I recall margins at Y/E were quoted at 5.2% which was a slight reduction on previous expectations- hence the fall in the SP.

Once the announcement of the sale of the Contact Centre short term margins were boosted to 7.2%.

As public sector margins are already in excess of 8% & pensions around 14% longer term margins are going to be around 9% & rising.

This is why the June statement is so significant as all these details + hopefully a positive statement re the CSPS pension scheme are going to be announced

@Jordi don’t think this is videoed but there are some LSE posters attending & I’m sure they’ll give a synopsis of the AGM

Whatever the SP does in the short term there’s a lot going on & most of it positive.

AGM a next week

June trading statement

CSPS pension scheme hopefully sorted by end June

Disposal of Contact Centre

Oasis involvement

+ hopefully new contract wins etc

For me the June update is the most important short term event

To be fair to AH he has turned around Capita but the market hasn’t recognised it yet.

I think the June update with some vastly improved figures (& hopefully a sorted CSPS scheme) will be a catalyst for a substantial SP rise

@MrBrian provided (& they have restated several times that all is on track) Capita meet their end of June deadline for restoring normal service I think overall they will get a lot of respect (& orders) for achieving this considering the mess it was in when taken over.

Of course if they don’t meet targets it’s going to be pretty disastrous

You would think that Shore would do a bit of research before posting a rating saying that recovery in the contact centre is critical when it’s actually been sold.

Margins going forward are only for 2 divisions

1) Public currently at 8.3%

2) Pensions at around 14%

So overall around 9%

& Pablo has already stated this year will be 7.2%

@bigpunt -Thats pretty well where Capita are now apart from that with the disposal of the Contact centre revenue will be a good deal lower than the £2b you state but profits & margins well up with public sector at 8%+ and pensions 14% or so