Member Info for Culley01

Thanks Trisor, I think most LTHs are frustrated at this latest update which seems to mirror the JL approach & I had expected better of AH. We need actions not words or at least a bit of honesty

As you say Pb the light at the tunnel end never seems to get any nearer.

AH needs to produce some positive gains by August 1/2 year not more of how well we’re doing.

The ‘brilliant potential of AI’ needs to show some large contract wins - or an impressive total of smaller wins.

We seem to be bleeding money & I really don’t know where it’s all going.

With £250m savings + no more pension/data leak etc costs (another £50m) we’re only hitting break even in 12 months. Just doesn’t add up.

A very disappointing update with Free cash Outflow increased to £120-£140m (was £70-£90m until the previous increase to £90-£110m) shades of JL I’m afraid to say here. I was expecting AH to overperform & beat targets not to miss them by a mile.

FCF not to be achieved until end of next year, where on earth is all the money going if we’ve already achieved cost savings of £140m + the one offs

I was not expecting any major improvement until August 1/2 year but nor was I expecting such poor figures & a wait now for a further 12 months

Well I got my buy at 15.80, not sure that I really want it now as it looks like yet another year.

I had hoped that with all the cost cuts already completed & the falling out of the one offs we would be cash flow positive earlier than the end of next year - don’t really see where all the money is going.

I’d also like to see all the hype being shown in new contracts which should have made up for any revenue loss

Somewhat disappointed all in

Hopefully we’ll get some guidance on timelines relating to FCF. Also updates on headcounts, contract renewals, margins etc.

I’m hoping for indication of really positive results for August

, as for how the market will take the update I think it will be negative & my buy at 15.8 could get filled

Thanks Macy not seen that one. Looks like the longer term margin is 10% plus, that’ll do nicely

Until we get actual results showing profit & FCF these will continue to drift (as usual I’m happy to be proved wrong! ) but I think the wait will be until August.

Terry totally agree. Truss’s policies were fine just her timing & execution were rubbish.

On my trading part of CPI I have a buy at 15.8 & a sell at 21. I suspect that in just over a week one of these will be filled & my guess is the buy ( but hopefully I’m wrong)

@TheOldTrader.

I’m hoping that new contracts will be more than the 6%-8% margin which my understanding is that this is the target for the average of existing ( including the low margin contracts) & new.

Is any kind person with access to bidstats happy to post approx value of CPI contracts won over the last 6 months

Unfortunately I think the SP will get hammered on the 17th. Figures which we’re expecting will show a £90-£110m loss. I know the longer term picture is very positive but I believe we’ll have to wait for Y/E in March or maybe August 1/2 year results.

@Darkblue. Yes all these EdI, womens,black achiever etc awards are all very impressive but I’d rather see some contract wins.

Although the relentless pursuit of EDI is beginning to wane in the private sector it is still essential in the public sector if you want to win contracts.

I don’t think the December update is going to change the SP much. We’re expecting a loss ( excluding Capita one disposal) of £90-£110m. Hopefully that figure will be improved & certainly debt is going to be much reduced but unless we get a really strong statement indicating resumption of dividends ( which I think unlikely) & very positive forward guidance we’ll continue in the doldrums until March end of year or August 1/2 year results.

I’d be delighted to be proved wrong

It would be nice to see a major contract win win which AH said he expected to see ( in the Yellowstone presentation) prior to Christmas

This thread is getting ridiculous.

I have 3 green filtered flags & out of the last 25 postings 22 are green

An extra 1000 redundancies at £25k/ head is £25m saving, enough to pay any NI increase. I don’t think AH will find that a problem.

@KG I think you’ll find that average CPI salaries are nowhere near £45-£50k/yr but sub £30K

The results are not going to be great as the indicated loss is around £90m & it seems it’s only the headline figure that gets attention.

Net debt should be close to zero & hopefully going forward we’ll have FCF.

We need a couple of good contract wins & a strong positive statement in December announcing resumption of dividends in 2025 to kick start this. Otherwise it’s going to be a wait until half year results in August which should really show the turnaround