Member Info for GoCPI

That was as good an update as any. The additional opex provisions draw a line in the sand, as Helen said on the call yesterday. 0.1% of the server estate was affected in reality and data securing is in progress through specialist consulting/software company teams. lessons learnt , but will put CPI on a strong path. The daily fear mongers (NoClue) and other weak hands must be kicking themselves for selling out - when they look back at this a few months out.

I'd suspect this RNS news leaked yesterday and hence the strength in the market. Circa 5% revenue uplift and £450 million contract wins is great. And that's before the DWP extension coming through. Patience will win out in the end - even if there's a US recession on the horizon.

"Apologies if this is a daft question, but why are Profits are H1 weighted this year, and free cash flow is H2 weighted?" No question is ever a daft one, unless NoClue is asking though.. :-)

The one thing that Stephanie said on the call was that there is a circa £20 million holiday expense provision weighted towards H2, and that impacts P&L profitability in H2. I didn't quite pick up on any other items, but its a non-event for me. Cash Flow from the business is key and as long as that's trending upwards, that'll push us on a path towards dividends.

Attrition is to be expected in the Experience division, and wasn;t a shocker at all. We're comoeting against Amazon/Tesco and the likes, and the sign-on bonuses offered last year.

A good old US recession will help. :-) Attrition is trending downwards anyway.

Profits are H1 weighted this year, and free cash flow is H2 weighted. Dividends sound like a 2024 story, but they could bring that forward and discussions cold be ongoing in the lead-up to h1 results in August - but buybacks aren't ruled out too.

Says NoClue...

That response sounds good. All customers are connected and back in BAU mode!! Lovely jubbly...

It sounds like disposal news incoming - Helen sounded sanguine about then being net debt below zero by the end of H1. I did also ask a question about the hack..Helen's responding now.

He'll be waiting, and waiting, and waiting, and waiting..and on and on!!

2.7 million shares traded in 3 hours - that's decent volume. News leak - that's all I can speculate. Go on, JL. Kick their backsides!!

I wonder what whispers are hitting the market this morning? No news on the internet yet!!!

I suppose you'll be waiting, and waiting, and waiting, and waiting..and on and on!!

Remember there's the CPI Investor webinar tomorrow at 12:30 PM? OK, Helen can't really provide any updates on Asset Sales or Wins, if they're not announced in an RNS tomorrow morning. It'll be good to get a sense for how their hack investigations are trending and if there was any impact on their pipeline!!

All that FearFul wants is a low entry, and I really, really hope that the market shafts his intention. FearFul - you should start with spelling Jon Lewis correctly, before you start calling some John Lewis, whoever that is.

Go on CPI, kick the detractors up their backsides!!

DD123 - how dare you acuse the 'honest abe' on this board, Mr. FearFul, that he sold at near the lows of the day, when he got out at the best possible time at 111p this morning? I can vouch for him though - he's one of the greatest traders on here. :-)

I won't sugar coat too much though, the near term macro looks horrendous. Fed is forecast to cut in July (60% probability as of today) and for that to happen, the next 2 months, macro news and stock movements wise, have to be in the pits. I hope the update next week gives us a bump and cushion any broader market fall that's possible in the coming weeks - everything crossed for that outcome. On the other side, whenever that is, I'm positive that we should take off!!

Good luck all - we need it.

Fair enough, Aim. I'm personally holding out, even if it does slip into 20s. Medium/longer term - we should get good returns when the margin turnaround take hold

Finally, a bit of positive news from the customer side of the fence..

https://www.proactiveinvestors.co.uk/companies/news/1014033/aviva-says-it-thinks-customer-data-secure-after-capita-cyber-attack-report-1014033.html

I don't get what the recent management blunders are...

Is reducing net debt to close to zero a management blunder?
Is pushing for a mid-single digit margin a management blunder?
Is pulling CPI back from the brink a management blunder?

if you're referring to the hacking issue, how is that a management blunder? That can happen with any organisation and all it takes is one person to open a virus laden file - however much of an emphasis there is on IT security internally. There was the initial blunder when they came out and said that the hack was handled well and that was a premature blowing of the trumpet, ostensibly based on an all-clear from their security team. However, since then hacked data was posted and they'd have done more forensics on the quantum of data exfiltration, and came to realise that there was some exfiltration and hence have been cautious since about making triumphal annoucements - that to me is the right way to go.

Focus will shift back to operational execution as they move forward towards the end of H1..IMO. As to the price, who knows where we'll go in the near term. US recession concerns can drive the market lower and take everything with it - none of us can rule out that scenario. But, as long as CPI focuses on operational execution and growing margins, the market should reward us in the coming months/years.

Ask ENQ holders if the EPL is a red herring - no, it isn't, will be the resounding answer. Their RBL will be reduced and may have to be repaid before the end of the year. That puts a massive headwind on their cash flow, and calls into question their on-going concern status. HBR isn't in the same boat in terms of RBL, but with a potential incoming labour government looming in 2025, and all their threats about expanding EPL, it isn't a surprise that NS valuations are as low as they are.

Also remember that whilst HBR has taken a hit on the P&L this year by kitchen-sinking potential EPL impact and rightly creating the narrative that EPL has shafted the profitability of NS O&G companies, the cash flow impacts of the EPL will be seen every year, till it is sunset in 2028.

No to worry, AimLess. I have my powder dry to buy more if this dips more - THG has helped!! It's good that weak IIs are dropping out as this is now more of a perception issue with the likes of Times absolutely loving us!! Changes will happen soon.

Times really have a hard-on for CPI, heh? What was the point of that contract cancellation news from 2022? It's like they're working in cahoots with the likes of MW to put as much 'useless' news as possible.

FearFul was out riling up the THG board through the weekend claiming his peanut brain saw Apollo cancelling their. Now claims to have bought at 103p and pumping that to kingdom come. I hold a few there, and happy that its up, but this character is beyond redemption. The winning trade is always the opposite of FearFul, and his THG long now has me worried.

Keep at it, JL. You'll make us plenty of money in the coming weeks/months

"No Fear the media (and lots of other wealthy investors) have access to this terminal. Shouldn't this negative news you are suggesting be out by now?"

For those of us on the CPI board, we know him to be a dimwit and he lost out on money by selling up CPI early and since then has been plaguing the board with his nonstep nonsense about the cyber breach in order to get CPI a lot lower. He now thinks he can get a lower price in THG by writing a load of rubbish and make a lot of you sell. Such is the level of intelligence (the lack of it) of that man - he genuinely believes he can move markets by posting stuff here. Shocking!!

They'll need to take their own time and not be in any kind of a rush to put a response out - this is exactly the way to go. There'll be in no rush to say there's been no data exfiltration on the pensions, and then have BlackBasta put out some kind of pensions data, however limited, out on the dark web. You don't know what you don't know, and caution is warranted. Best to keep nervous nellies and the likes of FearFul on the edge. Times is still doing their best to stir the pot, but to no avail.

FearFul is now out stirring the pot on the THG board with his usual insane points that betray a total lack of understanding of a takeover process in the UK. Nothing should ever be a surprise with FearFul's posts though. The easiest way to make money is to take the opposite side of his trade, IMO.