Member Info for Culley01

Presumably June update isn’t going to be too good hence AH announcing the drop in T/O prior to this

I’m still staggered that JL had the gall to announce that the turnaround was complete whilst leaving the company in a complete mess. Misleading shareholders is an understatement.

The worry is that AH hasn’t much time to turn this around as JL squandered time & money available

I don’t think there is any particular logic as to why CPI moves up & down at present. Until we get the June strategy plan there is nothing to base price movements on

Does anyone know the ratio of UK to non UK staff?

If I was not already heavily invested I would sit on the sidelines to await the June report & signs of an sustainable rise in the SP. Even if I didn’t get in at the current levels I would still be able to invest at under 20p which I suspect is lower than most holders so I do understand those waiting & watching

Cool It guys, everyone is entitled to a point of view & we just because one doesn’t agree shouldn’t lead to an argument .

Personally I think AH is a completely different CEO to JL (thank heavens) & has shown by his actions so far that he means business

The wider market are going to want to see results & that means profitability & FCF before pushing the SP up & it may mean waiting until August 2025 unless AH comes up with some positive surprises

Good move & has been predicted for some time. I would also be happy to see the Chairman David Lowden move on.

I believe that the June statement is going to be a real indicator of where this company is going. If we get a positive statement with clear goals & timelines I’m happy to hold but if we get more of the JL type b…..t ( which I don’t believe we will with AH) then we are ‘all doomed’ as Fraser would say.

Even with a positive statement the markets may well not give an upside & want to wait to see actual profits.

Actually a joint enterprise with UK government for the section of CPI that deals with UK government would be a good tie up but unfortunately they’re be all sorts of objections

Administration is only a possibility if the company is insolvent ( or about to become insolvent)

The share price has nothing to do with it

Nothing has changed for the worse (except the SP!) since AH came in. He’s made some positive statements, invested in the company & announced £100m savings + potential to improve margins further. Not bad in 4 months.

I hope that the June statement will give an impetus & a clear sense of direction (sadly lacking under JL). My worry is that return to FCF could be put off to 2026 but I think that’s unlikely.

We have £60m saving announced by JL, £100m by AH, from next year £20m saving from pension, £25 m not going to data leak.

I reckon there will be a£50m spend on AI etc but even so the above should show profit in 2025

I have placed a buy order at 12.7p & a sell at 17.5p ( both only on a small proportion of my holdings)

Any bets which we’ll see first

Capita is in its current mess because JL spent too much time dithering & wasted at least a couple of years ( which means we’re now still 2 years or so off being in profit instead of being in profit now)

I also have some sympathy for Stuart Morgan ( the previous IR guy) who we all, including myself, knocked for being really negative when in fact he was being realistic & could see from JLs inaction that the turn around was going to take much longer than the spin JL was spouting

RogueRiver I think it will be interesting how much work is actually taken back in house. The motivation is basically empire building as the more work is taken in house the bigger the council staff etc. The problem is that it is likely to cost a good deal more than outsourcing as councils are incredibly inefficient, however the council leadership may not care & just forge ahead spending our money until they go bust.

Personally I think it will be neutral but we’ll get a much better idea of how Capita intends to grow withe the June update

Thanks Voli

Is there a date announced in June for the update?

Good post Kularatnam, we keep talking about AH but of course AH & Xenia are a very strong team with track record

I guess it all boils down to the question, is AH going to turn this around in the next 12 months?

If not CPI collapses & a lot of people including myself will loose a lot of money.

If he does make it work (& my betting is that he will, which is why I’m still invested) the SP should be moving towards £1.00 over the next 2 years.

I sort of agree but then I have to remind myself that in February I thought anyone buying under 18p was getting a bargain

Unless AH comes up with something spectacular (possibly in the June statement) I think we are still in for a long wait until August 2025 when I trust we really will see FCF. We know 2024 is scheduled for another thumping loss & I can’t see markets piling into CPI until it turns a profit.