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A good outcome for CPI will be a few of these contracts come our way - let's see what happens in the coming months!!

As I said before - business ad spend needs to come back and that's a 2025 story for me and I'm not surprised we're range bound at this time. As MS keeps reiterating, process and margin improvements are key in 2024 and if good progress is made there in 24, it'll help us massively when spend comes back in 2025, even if moderately.

JCJ - if you're comparing S&P/Nasd hitting highs (driven by the AI giants) and how we're languishing at these levels, then I'm afraid you haven't done much analysis!! Read up on the consulting sector and if spend is turning around and you'll have your initial green shoots for the sector. And there are plenty of quarterly earnings reports from US listed companies that'll show us the way!!

JG is talking the free cash flow projected outflows of between £70 to £90m for 2024, largely driven by the projected £50m one-off cash costs associated with the wave 2 of cost cuts that are currently underway.

"going to try and turn off until later this year" - That's very easy to say (and the right thing to do) and never easy to follow through. It's human nature we're talking about!! ;-) Rewards accrue to the patient, IMO.

The likes of baiting Savage will be around like a bad rash with his doomsday prognostications until the price turns around, but it will, eventually.

GWA...

Https://www.s4capital.com/data/production/2021-05/S4Capital%20announces%20a%20combination%20with%20Raccoon%20Group.pdf?VersionId=1Ao2_ymp45TIfvjqfjb8UcE0_sqxi7Is

Corinne has had a good track record through her corporate career with her in a fairly heavy weight role as the CEO of the Americas for Adecco in her last role prior to moving to Capita. I don't care about people's accents as long as they deliver for the organisation. Having said that, she's come on board at just about the wrong time for the private BPO/consulting services sector - it's been in a marked downturn through 2023 and 2024 thus far. The right-sizing is good and when the upturn eventually arrives, likely in 2025, the CE division will be in a great place to boost revenues, and profitability off a lower cost base.

SFOR's revenue is >80% from America and so what happens in the UK elections is of little consequence to our SP. We're directly correlated to business condition improvements in the US, starting with a rate cut there ASAP. Low liquidity LSE will not improve whether Labour gets into power, and FWIW, I think they will - Maybe a single market segment could infuse some more liquidity, but I don't think that's the panancea for SFOR's languishing SP.

I'll use DarkBlue's thread focused on CPI, rather than dogs like BT.

It's fantastic that 11% of the £90m savings delivered are from procurement and other spend optimisation. Kudos to Xenia and team. 83% cost cuts from layoffs. 3% offshoring savings and 3% real estate savings. And her team used AI to flesh out savings from the suppliers' contract - if that isnt a good use of AI, then I'm not sure what is ;-)

@TRisor - Yes, of course a new government under Labour will create opportunities in some sectors and uncertainties in others. There are sectors that I wouldn't touch under Labour - the UK Oil and Gas being a primary sector, for example. But, IMO CPI will continue to do well.

On another note, I missed the first few minutes of the call. Xenia is impressive and her transformation focus backed by BCG supporting CPI's team on this transformation journey is exciting.

Gents - there's no point in letting this board devolve into a political discussion board, although I do acknowledge that passions are high.

I firmly wear my investment hat and assessed if CPI would be negatively impacted if (or should I say when) labour comes to power, and the answer for me is no, it won't. Casting aside my personal preferences and prejudices, and there are plenty such to see on this board, I'm convinced that Labour will be voted in on the 4th of July - the wider population has had enough of the tories after 14 years and in my mind, that outcome is inevitable.

CPI will do just fine - we'll all be fine if we focus on where Capita will get to under Keir Starmer.

GLA!!!

Yes, I also agree that BT's revenue will fall 20% in the next 2 years. SP will likely go to the 50s in the future possibly next year - a great short, IMO. The best millionaire maker if there ever was one. Short it baby and watch the money grow!

It's a head-scratcher that JL/TW, AKA Spongers, never could see that the contact centre business needed a revamp when it was running at 1% EBITDA, well below peer margins. Too much onshore headcount with too little standardised technology (such as CapitaConnect) being leveraged to sustainably boost margins. Surely the numpties should've seen years ago that this wasn't sustainable and would never really result in sustainable cashflows for CPI. And then for JL to announce 'turnaround complete'!

Weller couldn't go soon enough!!!

Dividend reinstatement - for me, that's in 2025. There's still a projected cash outflow this year with the severance and IT spend needed to setup the foundations envisaged by the management. But there's a clear pathway for FCF from 2025 onwards and it's possible that a token dividend is announced in March 2025, or August 2025 at the latest. All to play for, IMO.

£90m cost savings already realised as of today - suggesting more cuts have happened, likely more so in the Experience division with a push to off/nearshore. The remaining £70m savings will come through over the course of next year through Q2 2025. As widely telegraphed by AH, the real FCF savings/generation will occur in 2025 with this year being an inflection year. The big upside for CPI is if the UK/European turns upwards and provides additional revenue generating opportunities in the Experience division with a stable (lower) cost base.

Hopefully we get the RNS update in just over 30 minutes.

https://www.capita.com/about-capita/investor-centre/capital-markets-event-2024

Waste of space Weller is still presenting, but I suppose he has to until August at least. @Simpiles - the CTO is still around and the fact that he's a presenter - maybe he's not leaving CPI. Maybe they'll simplify Experience division even more, outside of the life pensions BU? Not too long to wait for the memo.

🤣🤣🤣. This is why you short the BT big dog to actually make money!!!

FWIW, I added more today. My highest position here has only got bigger in the past 2 days - but, I still keep the faith.

I suppose that the market is right in not front-running (to the upside) what may come out tomorrow - after all we've been bitten over and over by JL and Waller's obfuscation over the past 4 years (except for a couple of updates). Trying to extrapolate the value of tomorrow's update based on the last 2 days' price action is a fool's errand, IMO. I'd want to candidly discuss what comes out in the RNS tomorrow - hopefully, the tone will be a lot more posiitve than the kitchen-sinking news release we were given in March.

I'm optimistic that AH and team will deliver for us over the rest of 2024 and going into 2025.

May CPI was lower than expected and puts rate cuts in September are on the table. Good for SFOR and us!!

I can only but say just ignore gaslighters like Savage and wait till tomorrow's update for a steer on cost cuts/strategy. US CPI weaker than expected and the UK will follow - rate cuts in August - good news for Capita. Enough said!!! ;-)