Member Info for Ian.B

With the price just starting to rise from rock bottom…

Outsourcer Capita said it swung to a profit in 2021 as revenue ticked higher for the first time in six years.
On a reported basis, the company swung to a pre-tax profit of £285.6m from a loss of £49.4m a year earlier, with revenue down 4.3% to £3.18bn. On an adjusted basis, however, revenue was up 0.4% at £3.0bn, while pre-tax profit increased to £93.5m from £5.4m.

Capita said revenues were underpinned by some major contract wins, in particular the Royal Navy training contract and in the Public Service division as a whole. These offset the impact of contract losses, mainly from 2020, in the Experience division, as well as the net revenue loss of Covid contracts won in 2020.

"We also expected further benefits from a recovery in our Covid-affected businesses, such as Agiito (our travel & events business), but lockdowns and slow market recovery affected this significantly," it said.

Chief executive Jon Lewis said: "It was a year of significant change at Capita as we completed our transformation by ESTABLISHING A PLATFORM FOR GROWTH, while continuing to strengthen the balance sheet.

"We grew our revenue in 2021, reversing six years of declines, and expect this trend to continue to improve, while we also expect to deliver positive sustainable free cash flow in 2022.

"Capita now has the foundations in place to deliver sustainable improving financial performance; our new simplified divisional structure will deliver significant benefits."

Looking ahead, Capita expects to DELIVER REVENUE GROWTH in 2022, POSITIVE SUSTAINABLE FREE CASH FLOW and to continue to strengthen the balance sheet.

"Our revenue growth target is built on strong contract performance in 2021, our order book, lower attrition, a growing pipeline of new business in both Public Service and Experience, as well as ongoing recovery from Covid-affected businesses," it said.

Factually distorted to suit his agenda.. what ever that may be, yet to see this poster point out the investment case here which is strong.

SERCO
- Is a Ftse company - largest institutional hold in srp is 5.7% no other fund holds over 3% - Cpi have 2 funds holding 18% each
- It has debt
- it has HIGHER REVENUE - marginal higher until track and trace boost.
- It has higher PROFIT -
- it's a DIVIDEND paying share
- It has LOWER share in issue - irrelevant mcap is what matters
- It's undergoing BUYBACKs atm
- it's a EXPANDING company through acquisitions
- Winning contracts close to BILLIONS and not like 63 million capita won over 5 years
- Way better REPUTATION than CAPITA hence lack of negative news in the media - debatable, track and trace was a complete disaster though they made ££,s from it.

CAPITA
- It's in FTSE ALL SHARE hence institution reducing exposure - funds added recently, huge institutional backing in Cpi.
- HIGH DEBT company yet to reduce - debt is reducing and will be debt free next year
- NO dividends - yet could resume 2023.
- HIGHER share in issue - completely irrelevant
- SHRINKING the business by selling portfolio division - streamlining and restructuring the business by selling none core arms of the business to focus on two core areas to generate cash and eliminate all debt.
- winning SMALLER contracts mainly with training and clerical work and call centres (booming area) - lots of large contracts won too.
- Doest have best of REPUTATION - Subjective point. Srp doesn’t either.

Srp is sat on an mcap of £2,005million Cpi just £400m
Cpi would need to rise 500% to match srp value
There is a lot more money to be made investing here than srp. I’ve held srp for 12 months previously it’s a very slow burner.

Restructuring is complete at Capita and they expect to be debt free and ready to resume a divi next year. I certainly believe there is a potential to make 250% return on investing in Cpi at 25p.

Ignore the noise from the traders desperately trying to play it up and down for a penny or two. Buy and hold for 12 months and reap a very nice return. That’s my plan and I believe why we have seen funds adding recently.

Break 25 and 30 will come quickly . Crazy how cheap this is. Even AM2018 might have to buy some if it breaks out.
Imo its not if but when here.

100k buyer?

Sharehead agreed, just read the srp update. Great strength in the outsourcing sector and CPI are in a position to take full advantage. The Mcap here is really tiny for a company with huge turnover and offers very attractive entry.
All the institutions and funds holding huge stakes in cpi are here for a reason.

Good to see theirs knowledgable posters to correct his constant bs
Great contract win and i expect more to follow at this time of year.

Very nice contract win. More to come watch too.

Aim2018 must be on double time Saturdays 21 posts on Cpi so far today with half the day to go.. Great effort but what’s the point, I’d def want paying good money to spend all my time Ona share I don’t hold.
Schroeder’s and co must be quaking in their boots at his attempts to murk up the waters.

Not hard to spot whose sold and wants in cheaper. Good luck with your efforts but we all know it makes zero difference.

Q1 trading statement 16th June
17 trading days.

Bit of coverage.
https://www.thisismoney.co.uk/money/markets/article-10830581/MARKET-REPORT-plus-size-performance-boosts-profits-N-Brown.html

https://www.pensionsage.com/pa/Capita-Pension-Solutions-reports-revenue-and-profit-growth-for-2021.php

N Brown Group PLC - Manchester-based digital-only retailer of clothing and footwear - Pretax profit more than doubles to GBP19.2 million in the year ended February 28 from GBP9.2 million the year before. Explains this with a 32% lower impairment loss on customer receivables of GBP94.4 million compared to GBP139.1 million.

Also incurs lower finance costs and realises an exceptional gain of GBP4.8 million.

Annual revenue falls 1.8% to GBP715.7 million from GBP728.8 million. Blames this on lower Product and Financial Services revenue, due to business interruptions and adverse macroeconomic conditions that impacted customer behaviour. Plans to consider the reintroduction of a dividend this year.

Remains confident that its strategy will support the delivery of 7% product revenue growth with a 13% earnings before interest, tax, depreciation, and amortization margin in the medium term.

Current stock price: 32.49 pence, up 23% on Wednesday

12 month change: down 55%

By Abby Amoakuh; abbyamoakuh@alliancenews.com N Brown Group PLC - Manchester-based digital-only retailer of clothing and footwear - Pretax profit more than doubles to GBP19.2 million in the year ended February 28 from GBP9.2 million the year before. Explains this with a 32% lower impairment loss on customer receivables of GBP94.4 million compared to GBP139.1 million.

Also incurs lower finance costs and realises an exceptional gain of GBP4.8 million.

Annual revenue falls 1.8% to GBP715.7 million from GBP728.8 million. Blames this on lower Product and Financial Services revenue, due to business interruptions and adverse macroeconomic conditions that impacted customer behaviour. Plans to consider the reintroduction of a dividend this year.

Remains confident that its strategy will support the delivery of 7% product revenue growth with a 13% earnings before interest, tax, depreciation, and amortization margin in the medium term.

Current stock price: 32.49 pence, up 23% on Wednesday

12 month change: sp down 55%

By Abby Amoakuh; abbyamoakuh@alliancenews.com

Now available on the company website. If you register as a private investor where it asks for company access is instant.

Summary of Steve Johnson’s opening points,

1. 9.9% strategic product revenue growth

2. Business now ina far stronger position than it was pre-pandemic

3. Cash generative, double digit ebitda margins with ebitda growth in line with guidance

4 “Incredibly strong balance sheet” that’s often overlooked, adjusted net debt is covered twice over by the Financial services loan book

https://webcast.openbriefing.com/nbrown-fy22/player/?player_id=48157.

I’m personally hoping interest rates rise, I’ve been mortgage free for 11 years and rates on savings are pitiful. I remember in the 80,s getting 14% interest pa on savings now it’s less than 1%

Looks like a sell order was executed in £10k batches dropping it down and taking out a few stops?
Took a few more at 32p. Happy to wait, just think it’s grossly undervalued. Should have bought sub 30 but was busy this morning.

It’s read that piece and was about to post. Shareheads on the ball here.

This was trading at 70- 80p last year. Now we know PBT is 46% higher than the previous years results and it’s trading at half that price.

Ok results.?
Profit before tax is up 46%.
Net asset value is 96p a share.
Divi resumption for 2023
It’s simply far to cheap.
Had to start a rerate. Even at 30% up it’s still trading 60p below NAV.