Member Info for Culley01

@Capitilizer

I seem to remember that in the annual report the target was to double profitability on contracts which was running at a little under 3% or so to nearer 6%. They described this as medium term which they went on to define as 3 years.

Trisor I’ve done the same.

My question to Helen Paris is

Does the board have any comments to make following the disastrous fall in the SP following the poor reception of the results?

What action does the board plan to support the SP

If I get any response I’ll post it

8m traded already although strangely 5.5m registered as buys V 2.5m sells.

I guess some of the buys are really sells.

There is must be some seriously p****** off IIs

I would love to be a fly on the wall during CPIs IIs presentations.

I would imagine they will be saying in no uncertain terms that unless action is taken to support the SP there needs to be a clear out at board level

Let’s hope they stay on board because if the IIs start bailing out we’ll be down in single figures

For those who don’t have the patience of a saint I’ve read through the report & can summarise as follows.

We’ve done incredibly well & increased T/O + profitability & reduced costs & sold more businesses.

In spite of this we’ve lost loads of money due to exceptional costs which may or may not repeat themselves next year. We also seem to owe more money than before & have had to increase our lending facility by borrowing money at 9% or so.

However our employees are happy with us so that’s OK

I’m not surprised at the fall in the SP.

As said elsewhere we need a clear out at board level.

I would love to sit in at the IIs presentations next week

I

@Hexam. I do agree we need a year with a clear set of accounts simply showing trading figures, profits etc uncluttered by exceptional. However this might have to wait until 2024 or 2025

Why if we are producing FCF (after one offs which surely must have finished by now) & we have no pre IRFS debt are dividends still a ‘year or two away’.

Until we have dividends this share is not going to perform.

I agree that JL needs to go. To be fair he’s saved the company but now it needs someone & hopefully that’s Adolfo who’s going to start looking after shareholders. After all we do own the company & the reason we’re invested is to get a decent return on our money

Thank heavens I didn’t buy another 50,000 shares before results (as I was thinking of doing to make a quick 20% profit)

Getting very fed up here.

Dividends now 2 years off

Borrowing money at 9% when there shouldn’t be any debt

It appears that in spite of statements to the contrary Capita is still bleeding money & needs disposals to fund losses

Can’t understand why they are still losing money when profits are meant to be 5% + of T/O

There seem to be a never ending list of one off costs which decimate any profit

A week is a long time in politics & also it seems the stock market.

A week ago the general sentiment was bullish expecting a rise pre statement & a good leg up post statement.

Now it seems we’re hoping that at the best the results will prevent even further falls.

By next Friday all may have changed again but for better or worse who knows.

I do hope at least we get a clear statement drawing a line under the hack.

@Cashola it’s interesting the effect the expansion/contraction has had on the share price.

The previous management expanded rapidly acquired companies etc & the price went up until it became obvious that this wasn’t sustainable.

Under JL we now have a much fitter, leaner & focused company but this has been a disaster for the share price.

Perhaps Adolpho should go back to the previous strategy now he has a good base to work from & we have a nice ride up for a few years & then bail out before reality takes over again.

I know it sounds rather trite but I think it’s about time shareholder’s got a reward

It looks like good results will stop a further slide and anything slightly negative will result in a fall. As I’ve said previously only the resumption of dividends coupled with debt elimination and rising TFC being generated is going to move this & we must be close to that situation but it may have to wait (yet again) for Y/E results

Can someone explain to my ignorant self what the senior notes are?

Is Capita borrowing money & if so why & why at 9%

I’m sure I must have misunderstood this but any rational would be appreciated

By the way I think JL has done an excellent job & the timing is perfect for a new growth driven CEO

The only event that will get this going on a permanent basis is resumption of dividends.

This demonstrates that the board believes that sustainable Tax Free Cash is being generated & opens Capita up to income seeking investors rather than those just looking for a recovery play

My asks are a bit less bullish

50p by Y/E

75p by Y/E 2024

100p by Y/E 2025

Possibly more realistic but still if achieved an excellent return

& of course they were having sold that watch

Oh well I’m glad I generated a few laughs with my post ( I can’t even pretend the b & d were close to each other) we all need them here

Not a great build up so far for results day I do hope it’s not going to be yet another damp squid & we’re then left waiting for Y/E results 2023 or 2024.

Maybe it will get going in a week or so.

I really do think JL needs to be giving something to his long suffering shareholders I.e. Dividend or a date for a Dividend or a share buy back.

Sorry£400m not £200m

New contract win Student Loans Company 4 contracts worth £200m of which Capita won 2

Under 700k shares traded so far today looks like the big sellers may have finished.

If this gets up to the 40s post results (& it’s a big if) I’ll sell half my holding & would hope to buy back at a lower price as CPI usually seems to drop after an initial rise. I wish I’d followed this strategy on the last rise.