The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Reading through Divan’s post it seems we lost 4 of JLs 6 years (2 to fiddling around & 2 to COVID) with nothing much being achieved .
I personally don’t think the Y/E statement is going to be particularly encouraging. Two figures of interest, how much have we lost & how much has debt come down ( or have they spent all the sale proceeds on exceptional! Costs as usual)
AHs statement will be the most interesting part & will set the tone for the next year or two & August 1/2 year statement should give us a real indication of how things are going
@The.Crowman Yes I do agree how on earth can they spend £25m on costs relating to saving a similar amount on salary when it could be done through natural wastage (which is pretty high anyway). Equates to a year’s redundancy pay .
Another better option than a staff cut of 10% would be to grow the business by 10% (in real terms) without increasing staff numbers.
Saves the redundancy payoffs & increases value of the business.
Come on Adolpho let’s see what you can do!
A 10% staff reduction (4000 people) @ £25,000/head (& I’ve no idea of staff costs but including NI, pension, overheads etc can’t be less than £25k) would give £100m saving.
The potential is enormous
Let’s hope AH grasps it.
@GoCPI as far as FCF for upcoming report I think it’s going to be pretty bad hence I don’t really expect any substantial improvement until1/2 year in August
However if we get a really positive statement from AH & some substantial progress in the meantime that will be a big help
@Trenners yes I do agree it’s always a year or two down the line & then something comes up to make it another year or two.
I’ll give AH a year to make his mark & show progress otherwise I’ll reluctantly depart from Capita
I suspect you need to bang on about diversity in order to win government contracts.
As long as the focus is on efficiency, cutting costs & delivering value to Shareholders I’m happy
I think the August 1/2 year figures will be the real indicator of where we’re going
I’m getting somewhat nervous ahead of results. Based on December update we don’t expect them to be great & this share needs constant good news to stop it falling.
We’re totally dependent on AH giving an upbeat message.
If he does & we get good 1/2 year results with FCF in August it will rocket otherwise it will just drift & probably decline further
HHH81 I would have expected him to have 6 weeks or so to get to know more about the company & formulate plans before making an announcement. In addition we are in a closed period prior to Y/E results so a statement accompanying the results makes perfect sense.
Let’s just hope it contains some concrete plans & targets with dates & figures clearly laid out & how he proposes to achieve them
All will shortly be revealed !!!
Fingers crossed
Yes the government should reduce the size of the state but when we have a Conservative government who increase the size of the state & we are shortly going to get a labour government I can’t see it happening.
My worry is that a labour government will bring back more contracts in house (like the congestion Charge on the premise of saving money (& at the same time increasing headcount & power & senior salaries) . Of course they won’t save money but the damage will be done.
I don’t think AH would have taken on the roll at Capita without a lot of due diligence & satisfying himself that a turnaround is not going to be a long slog but that most of the background/ preparation work has been completed.
He seems to achieve pretty good SP growth over a 2/3 year period & them moves on.
Personally I’m positive on him but a lot will be revealed in the expected statement with Y/E results in March
Basically we are all relying on AH as CPIs & hence it’s shareholders saviour.
I only hope & pray it works out.
I personally think we will need to wait until August results for any meaningful improvement but hopefully we’ll get a strong statement with the results in March outlining plans/ forecasts with
timescales for completion.
2 of JLs that didn’t (or won’t) materialise were (the indicated ) reserection of dividends in 2024 & elimination of debt once disposals were completed. Fairly major lapses.