Member Info for GoCPI

@Trenners - the H1 results changed my view, finally, about how atrocious the management team is WRT creating shareholder value. If you can't boost profitability/cash flow in an inflationary, non-recessionary environment that 2023 so far has been, I dread to think what a slowing environemnt can bring. I've sold 75% of my holdings, and when facts on the ground change, so must your investment. I'm not married or emotionally invested in a stock or company - you just can't afford to be it if you're to be a successful investor. We've hit new 52-week lows yesterday and I think there could be more downside in the coming days/weeks as this rather insipid quarter's performance sinks in for the market to digest -as aptly summarised by Culley01, may I add.

The turnaround has all but vanished and the business performance has regressed in reality. I can't wait for Adolfo to take over the reins in the hope that he may provide clearer focus on SH returns, but I suppose we'll have to wait till March next year for the next turnaround signs. Unless they have some large contract wins in the coming months that can offset the h1 performance.

It's a hold, at best, for me.

@Capitalizer - "100% Cashola. Earnings and FCF are all that matter now.

JL missed the analyst estimates, fumbled the ball and has been given the boot imho ....

"Retirement?" nah .... don't think so."

I didn't want to slate JL too much as I'm still invested here in spite of selling a good chunk this morning, but I'll do one pass at commenting on his performance this HY. After touting that his so-called turnaround was complete, what's transpired today was a disaster and the market reiterated as much. I'm sure this outcome was in the making over the past few weeks as the scale of the hack and its impact on costs and cash flow became clear. What transpired was a complete miss of net financial debt guidance (it actually moved up to £160m rather than the close to zero that was forecast). The cash outflows widely missed the mark, and hence wasn't a surprise that £110m was raised to refi the debt. I should've cut through the noise and analysed what was brewing rather than just have my blinkers on and go with the corporate waffle around opening up new financing avenues.

More than the board forcing him out, and I'd have to agree with TerryM1 that this is an inept board. he probably saw the writing on the wall that his legacy was in taters anyways, and decided to hang up his boots. The board wouldn't have a leg to stand in if they tried to make him stay - that's my take on what transpired. At least Adolfo grew SDL back in the days and took it to a valuation of over £800m when it was sold. And he's quite tech entrenched, and should be a better bet to flesh out shareholder value in CPI.

It's broken out to new lows today and that's a bad sign, IMO. if the broader market turns down, we could easily get into the teens. What a mess!!! At least my online retail picks like THG and ASC are going OK....sigh.

Good luck all - we'll need it till at least JL hangs up his hat.

@Wednesday - I don't disagree that there are good foundations for CPI. We just need new leadership to seize on that and actually deliver shareholder value. Next year, Rodders!!! Maybe Adolfo can be the CEO who actually delivers shareholder returns on a sustained basis?

Wed - I don't think you're being harsh. The regression of the business this HY - the buck stops with JL. He was probably under tremendous stress over the past 3 months and decided it's about time to put this 'false' turnaround story behind him, and face reality. I can picture him put his hand up and say - board, time for someone else to run this ship while there's a modicum of respect for me within the organisation. Not so from the shareholders though - it's very frustrating that a bog standard listed company CEO's pimary job to ensure shareholder value creation is delivered, can't even be remotely addressed, even in a pretty favourable business climate in 2023.

To Cashola's point, that was probably true and if the hack never happened, this half-year might've been a different story, but then that's how it goes. All the distraction/spend has meant that cash flows have gone properly backwards. OK, CPI has always been a H2 CF loaded business, but this number was disappointing. I for one, am happy that Adolfo is coming on board, although that isn't quite quick enough!!!

It's not a new dawn and I've come around to the inescapable conclusion that we wont really take off until JL is out. I feel for the many long-term holders here who're heavily invested in CPI and who're feeling just as peeved as I am.

I can see why TerryM1 was pi**ed off with JL/board, and nothing in today's report contradicts what he's been saying for a while. Good on you, TerryM1. As JG68 pointed out earlier, we've actually regressed this half-year and I won't be surprised to see new lows here. I'm lightening my holdings, wait out what plays out in the coming months, and pile back in when Adolfo takes over. I still see value in the business, but would rather see fresh thinking and leadership to truly turn this around!!!

It was a mixed bag - Increased revenues, couple with higher costs from the one-off spends/investments related to the hack - you can Capex has jumped in H1, along with the cyber hack costs. Adjusted EBITDA/revs were higher is a positive. H1 EPS adjusted was 3.34 --- the SP was already reflecting these.

It certainly looks like JL will not have the fairytale ending with a dividend reinstatement announcement that he'd have liked, but certainly closes a chapter on a tumultous 5+ years of his leadership where he oversaw, as the news outlets like to report, 90+% shareholder value destruction. Goodbye, Jon, and over to Adolfo.

I know you'll buy some from me at 38p.

I'm not forgetting for a second, bubbles... The plonker and his cohorts at the top..

Lol..I'll have you in the team, Bubbles59, - even if it means I need to drop out. ;-)

You have to believe/know that there are considerable head-winds relating to the hack for there to be such negativity around dividend reinstatement. I wouldn't see the SP performance over the past few days as a reflection/endorsement of that reality. Holders are nervous and the weak ones are selling anticipating the worst, I suppose in line with Lordy's views. My own view is that such negatvity is unwarranted. We may get more clarity on the hack and its related costs, and we may find that cyberinsurance may cover most of these costs. We'll just have to see. With additional cash now in the bank, JL may lay down the path to div reinstatement before he quits at the end of the year - he may yet want to leave on a high note. 21 hours before the reveal and I'm a glass half full chappie - it usually serves me well in a non-recession scenario. :-)

I added some more today - courtesy of the weak hands. I look forward to a jolly good update tomorrow.

I think a Saturday RNS is the only real concern for me, with Sunday a close second - this is based on my documented observations over my investing lifetime.

@Joseywales - I too don't expect a miracle on Friday. As long as there's better clarity on the hack costs that could put a floor under the SP. Granted the extent of fines that could be handed out is an unknown, but CPI is a company that does a lot of public sector work and that, along with the additional security measures/protocols undertaken since the hack occured, should be mitigating factors. Granted though, we may not break out like we did with the March FY22 results release!!!

"So long as he does not on arrival do a "burning platform" speech like the new RR boss did then I think this will put a spark under the sp on its own. ". @Crowman - I actually don't mind Adolfo getting in and shaking up the guard big time. We know what's happened to RollsRoyce's SP since the new CEO came on board last year, and if we get a good management shake-up at CPI with the focus reverting to delivering for shareholders, that is never a bad thing.

"JL is coming up to pensionable age and the last thing we need is a pensioner running a dynamic IT business like Capita ...." Lol, i was in splits there, Trenners.

Operational turnaround is complete, but a sustainable share price turnaround has not been in sight under JL's leadership. Over to you, Adolfo. Give the market what it wants to hear!!!

Adolfo ran a friggin UK listed company, SDL PLC, before it was bought out by RWS in 2020. Their market cap then was more than Capita's now - so those numpties mouthing off that he doesn't have experience running UK listed companies, are the epitome of cluelessness and we're supposed to listen to their heart breaking comments in the FT article.? Doh!!

He'll run this just fine!!!

Nvidia would've been my choice, but hey ho - who can argue with what the AI buzzword has delivered to their stock prices, albeit NVDA is at the leading edge of that chp demand cycle.

@TF - I wouldn't be too hard on yourself. These kind of market value dislocations are far too common, more so in the UK markets. I know everyone thinks/says - maybe next year for the breakout, but I don't think we're that far out. A bit of patience and all will be OK, IMO.

You have to be in it to win it...

Near term - the two of you hav been right and its not a pretty sight 2 day prior to results and the US credit downgrade isn't helping the broader markets. It's giving me a good chance to buy though!! :-)

The 8m buy was at 27.72 - I suppose it doesn't matter if it wasn't bought today - it just shows that there are large volume buyers around and they see value in CPI. And when I see CPI's price come down on low volumes, like it has in the past week, I can that as weak retail hands selling out. if there's one thing predictable with them, you can be sure they'll jump back in at a higher price. :-) In the meantime, I wait till Friday.