Member Info for Culley01

@YTeeBack Brokers recommendations are generally for a 12 month timespan so although 900 in 12 months seems optimistic it’s not impossible

HH it may be priced to fail but totally unwarranted.Capita is in a stronger position than it has been over the last 5 years+.

I expect profit forcast in June update for 2027 to be £100m + ( it was already £70m without the £40m cost savings from contact centre disposal)

I was hoping for. Statement in August half year results confirming dividends for 2027 but looks like we’ll have to wait for December update.

However with the savings now from the contact centre exit & the prospect of a lump sum payment- depending on performance- I’m pretty optimistic for dividends in 2027. The June update with related figures is going to be really interesting especially the adjusted forward guidance

@Capitaliser AH isn’t going to cut the £40m costs relating to the Contact centre sale by June/July as the sale won’t even be completed by then, however he’s well on track to deliver increased sales & margins, reduced costs etc over the next 6 months+

Or possibly the Ides of June

Welcome MT judging by the number & variety of recent posts it’s good to have a ramper here.

Makes a change from Savage/Aim.

All nonsense of course

AH said that they had been hoping to announce the sale on or before results but final details not cleared up until yesterday.

They are very aware that timing wasn’t perfect but in the end it’s the figures that matter

@Max Webinar was excellent & very bullish. It will be on the Capita website probably tomorrow so well worth a look.

Another £40m savings, lease debt reduced, margin increase to 7.2%, accelerated program for further efficiencies & marketing.

Costs for annual £40m approx a £25m one off.

If this announcement had come out before year end , bearing in mind we were £3.50 the day before we’d have risen from the £3.50 so next target £4

@Marcus - surely that’s a liability that you would have to pay someone to take it off your hands

Let’s hope that they get some financial redress for all the extra costs incurred.

I’m aware that the strategy is to sort the problem first & discuss finances later & this is the correct approach

@Hexam - I do get your point & one does wonder why with the £250m cost savings the FCF isn’t considerably higher. Also if you include the £20m or so cost ( which for projections has been excluded) of exiting the RL contract this reduces projected FCF to £0 - £20m

Received an update from Tipranks confirming Barclays buy at 600p & Canaccord reiteration at 900p

To elaborate the £700m quoted was a theoretical (rather than contractual) figure of what the contract could have been worth over time..

The actual contract value is as already stated

Max cheers for the £300 but either there are a lot of us, or my drinking capacity is way off current trends or we're on to some seriously good malt whisky

It’s going to be interesting to see how results are received.

Reported figures for Y/E aren’t going to be great (as we know) increased debt, negative FCF etc.

The stock market traditionally looks a couple of years ahead however in the case of Capita it’s been looking very much at the past.

If we can, with the forward guidance, move the markets to look ahead rather than backwards then the Canaccord valuation of £9 is on for this financial year, if not we’ll have to wait for the half year results in August (or the June update)

I’m cautiously optimistic but we’ll soon know

Max as far as I can understand it is the part of the contract which is not being contested - so part of the £700m

Good post Trenners. Looks like they’re pretty hopeless

I guess it’s OK to take some unfair stick if the reward is a £700m contract. Sticks & stones comes to mind

@Asder looking at your posts see you are very bullish on AI wondering what your medium/long term projections for Capital?

@Max I’m hoping that FCF has been achieved without the benefit of excluding exit costs & this will just enhance the figures but all will shortly be revealed