The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I’m sure this has probably been posted before but a fair summary and reminder of why funds are buying in here at these low prices.
Sharecast News) - Outsourcer Capita said on Thursday that 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, Capital 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.
Capital also announced on Thursday that it had received clearance from the Department for Business, Energy and Industrial Strategy for the disposal of its IT services business Trustmarque to One Equity Partners.
https://www.youtube.com/watch?v=4NoOkqZ-tG0
PF talking about protect duty here..
I’m convinced when funds are loading up they use DMA to crash the price with repeated small sells to trigger stops and to shake out pi,s before hoovering up the cheap shares.
Anyway not to bad today down 0.5p on a pretty carp day on the markets. 2 steps forward 1 back is fine as long as it’s making slow progress north.
Sentiment here is good, funds holding large positions anticipating the improved fortunes and potential dividend at very cheap Sp.
Maybe speaking to soon but a complete absence of red Auto trades last hour with blue autos slowly nudging the price up. Could all change this afternoon but so far so good.
I certainly can’t see there being many sellers left at this depressed level.
On recent news and sentiment this should be back at 40ps by now.
The rise could never be sustained on such a tiny contract, 100,000. Euros per annum for 2 years and with what profit from that. I was gob smacked at the 130% sp rise. The herd ran through, pumping away with no idea on reality, many buying due to fomo, I Wonder how many lost money or are now locked in. Some may have read the pipeline of £85 mil and been wowed but loop have been quoting huge pipelines from £65mil upwards for over 2 years and failed to deliver on it. The company is being very cheaply valued for a reason. The value will only show a sustainable rise if they start delivering and so far they haven’t.
Fair summary. I watched the webinar last week and that’s a brief nutshell round up. If you’ve not seen it look it up on YouTube.
The main thing for me is they will have sustainable free cash flow this year for the first time in 6 years. Debt will be reduced to zero as loan repayments mature.
The company is currently sat on a tiny mcap of £389mil with revenues of several billion. It’s hugely under valued. With the restructuring now complete it Looks a solid investment now medium to longer term.
570k shares is pretty insignificant amount
There no doubts bots are controlling the price atm but far more buys (4million) to sells.
Posting on here has no bearing on the sp either way. It will go up when the bots switch back to blue.
Yes couldn’t resist either at 24p. Now my largest hold.
Sit back and wait now. Looking for 50p but. If they do as they say and are debt free this year and then reintroduce a divi next year it should go a lot higher than 50p
Back test of 25p.. profit takers and weak holders out .
All healthy as long ad it goes again which i think it will.
50p nailed on at some point just dont poo your pants if its not blue.
Imo 100% profit from here is a given unless black swan event .
Clear reversal of the down trend in play.
Positive noise from the company on recovery taking shape.
For me its still half the value of what it should be.
Pretty sure it will get back to 50,s at some point. It has done a couple of times and now the overall outlook is looking more positive when it last hit 50,s.
Looks a no brainer sub 30p
On line retailers certainly suffering of late with costs and distribution and its not confined to clothing. Bwng on £132m Mcap v £900m of revenues is very cheap but they need some positive news to get back to a fair valuation for the company.
Hearing JD Williams ads on the radio this week. Pushing gardening stuff on finance.