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This has been repeated for at least 4 years and if anything it keeps going down. It now seems to be pretty much as low as it can but it also does seem like backing a dead horse at times. Putting shares on Capita now is like gambling
As a very recently former employee I can say thats its going to get messier before it can possibly even get better. Everyone at the company is looking to leave. Whilst some of you may say thats a good thing to cut the cost base etc, what I can tell you is that Capita will lose a lot of clients if some of these very good employees to go. There is no guarantee this goes up from here and its got nothing to do with strong stomachs. Until Adolfo starts coming some of the heads around the senior level and level below that report into him then nothing will change.
Apologies for the delay in responding.
So as many of you note the cost base for the company is far too high, but the problem at the moment is they are cutting fat in the wrong places and there hasnt been a huge reduction in overall headcount. So the majority of roles have been junior roles that could be offshored. These are roles paying £20-40k and then they have been offshored to India for half the salary.
In terms of jobs above £100k they cut 3 roles. No doubt with the next £100m cost saving announced this is going to impact the more middle management as its still the £100k+ managers who are being asked to find the savings within their teams and they are saving their own bacon first. Its run like a political party in the sense that the big dogs all watch eachother backs and anyone senior that they do exit from the business will get a huge payoff.
Ultimately the cost base is 90% headcount and this is the only place savings can be made so improve profit and cashflow. In terms of new business is a struggle. Whilst there have been a few great wins that have been reported, its overall been impossible to compete with the big boys, largely down to the reputation that Capita has built over the years.
I am a up until very recently former employee and probabaly one of the most senior members of staff who was cut from the 900 people in November. Happy to answer any questions as I have been a long term lurker and its always been interesting reading peoples thoughts and how far away they are from reality in many cases.
When are you jokers that have a fit everytime the share price goes up gonna realise that logic doesnt apply to this share. Who cares if it has a PE of 400. I have tripled my money on this due to ignoring peoples advice that kept pointing to the PE and saying strong sell.
Trying to play logic with this share isnt wise as who knows where it could go. I have tripled my money on this. Amount of people who come on here just to say its gonna go down sound very jealous. No doubt one day they will be right but by then the rest of us will have made lots from this. Peace