Member Info for JamesOxford

Nice rise for JD Sports of late.

However, to me JD Sports - with circa £900 million in profits - still is a bargain at circa 87p per share.

There is no doubt that within 1-2 years, JD Sports will achieve the all important break-out of over £1 billion in profits. When that time comes, this share price will rocket!

@Garrone. Good to see you appear to have more faith in Prudential now. Clearly, the Prudential share price trend is up and this will continue throughout February right up to the results in March...other than the odd blip here and there - usually on the back of day-traders or nervous investors (who sell for meagre profits and convince themselves into thinking they're clever!).

Prudential are very likely to publish excellent results in March; and the Prudential share price will spike upwardson on the back of their results. At that point, the analysts (and I do mean all) who have advised that Prudential is clealry a buy (at circa double the current share price) will be proven to be correct in their outlook.

In the meantime, the early bird ALWAYS catches the worm!

IMO & DYOR

I must say I am very surprised at the pessimism shown here, especially from long-term shareholders who oughtbto know better...

The facts are that AH has taken over from a highly incompetent (aka useless) CEO. AH has been at the helm for a mere 12 months. In that time, he has turned the listing Capita ship around. AH has ariticulated a clear strategy, which is full of common sense and includes the complete play-book of steps to turn Capita around into a lean and profitatble business.

I would never have invested in Capita under the previous CEO. However, I am very happy to remain a shareholder with AH and co at the helm. It is impossible for AH is turn the Capita ship around AND make it into a wizz-bang company after a mere 12 months. Impossible! AH has already turned around another LSE company (I mentioned this in one of my previous posts) and after AH completed the turnaround, it was bought out - and provided the shareholders with a very handsome profit. I see the same opportunity with Capita. I have no doubts that there are one or two private investment companies in the US who like outsourcing companies in the services sector - especially those who service the govt (i.e. guaranteed contracts, revenues etc) - who are watching the Capita story unfold over the last few months.

Capita has over £5 billion in the sales pipeline (all AI and technology based) and this is GROWING all the time, at 6-8% profit margin. If Capita wins say £2 billion in new sales, based on the lowest profit margin of 6%, this equates to £120 million in profit on new sales alone. Never mind the £250 million on cost savings. Capita is a growth stock, pure and simple. The share price is circa 14p and it would not surprise me if the share price slowly climbs to circa 30-40p over the next 18-24 months as new sales and cost savings are achieved. Further the parts of Capita (demonstrated by the recent sale of Capita One) are worth far more that the whole of Capita. This is naturally very attractive to private investment companies. If a private investment company suddenly expresses interest in buying Capita , this share price will spike upwards in a massive way. If you are already invested, you win massively.

If all this doesn't excite you as an investor, then I suggest you sell up now and invest in that slow and lumbering elephant of an investment BT. Any impatient investors ought to sell out now. Those investors who have been involved in turn-around companies will know to sit back and wait for - in Capita's case another 12-18 months, at which time the results will be there for all to see.

IMO & DYOR

Correction: 'Whomever' (not 'However') represented Capita 's management in negotiations with Unite over this should be sacked.

Not all Capita staff called for a strike - only 1,000 staff i.e. those in Manchester and Glasgow who work on the Royal London account.

I speculate here but I would say this dispute was escalated to AH directly. As a result, AH would have quickly agreed and back-dated payment, so these 1,000 staff quite rightly receive their agreed pay increase with back-pay to April 2024 (as this was an 'assurance' made by Capita's management to those same staff in October 2024). However represented Capita 's management in negotiations with Unite over this should be sacked. An 'assurance' is as good as a promise...and a promise is a promise. Bad form.

This latest stupid episode probably explains why the Capita share price dropped today (due to negative press - see below), when in should have risen due to the RNS update. Dumb, real dumb.

https://www.unitetheunion.org/news-events/news/2025/january/capita-staff-begin-strike-action-over-pay

https://morningstaronline.co.uk/article/capita-workers-begin-week-long-strike-over-pay

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/staff-at-capita-in-manchester-30886927

https://www.glasgowtimes.co.uk/news/scottish-news/24893097.glasgow-workers-huge-company-walk-pay-dispute/

@Trisor Capita...dividends? No way, no how! AH has made it clear dividends will be last on his 'to do list'. All AH needs to do is to continue to move forward and stick to his clearly stated strategic plans and objectives and all will work out in 18-24 months. It makes no sense to use up any precious cash to pay dividends to shareholders. Personally I view Capita as a growth stock, not a dividend stock.

@Adam You were spot on. Great work!

@Trenners. I wouldn’t reply to Helen. You made your point and she replied. You don’t want a bad relationship with her, else next time you email her she will roll her eyes and think not that loser again!?

The RNS update is what many here asked for. Capita delivered so let them get on with business.

@SavageKeyboard Speculation on margins for the RNS contract renewal is pointless. The tender is confidential and commercially sensitive. Therefore no one will know the margins made other than those in the know ie those from Capita who worked directly on the tender and they will be bound by their confidentiality agreements.

In summary we can only presume the minimum margin is 6 percent as AH stated Capita will not bid for contracts at less than 6 percent margin.

Any further speculation on this is pure folly.

Capita share price is up circa 3 percent on RNS contract win/renewal. That said, the Capita share price is still a bargain!

Capital’s RNS contract renewal is the blueprint going forward as it would have been written at minimum profit margins of 6% and includes investment in digital technology as part of the contract. This type of investment in technology further embeds Capital into governments and businesses.

Someone mentioned that they hope capital does not go bankrupt. To state the obvious government departments will not sign a contract with a company that appears to be financially unstable as this is looked at as part of the tender application and selection process prior to awarding such contracts.

On top of such renewals is the most exciting part for Capita shareholders, which is the large amount currently in the sales pipeline for new business. Even if say 33% of sales in the pipeline converted to new sales contracts it would mean a huge amount in terms of sales revenues over the next 12 to 18 months.

@SavageKeyboard. You sound like a broken record. Either that, or you have dementia. You bang on about Capita and it's falling revenues over and over and over and over and over and over and over...

You fail to comprehend that Capita have made the decision to exit certain markets and sell off parts of its business, as well as not renew or bid for contracts whereby these markets are not core to Capita's new offering and/or profitability is too low (i.e. in percentage terms), or the contracts are not 'repeatable'( i.e. scaleable). Therefore, as Capita exits these businesses/contracts, then of course revenues decline.

You also fail to comprehrend that once Capita has 'cleaned the dead wood out' (i.e. in terms of business sales, cancelled and not renewed contracts), that the revenue base will be low (i.e. bottomed out). Therefore, as Capita starts to write new business and renews contracts at strong profits (i.e. in line with stated objectives such as core markets, AI and technology based solutions, minimum profit margins), both revenue and profits will increase accordingly on a like-for-like (i.e. monthly/quarterly/yearly) basis. As this happens, potential and current investors will flood into the 'new Capita', and it wil be viewed as a clear growth stock (especially based on the current low share price) within the services sector.

None of this is rocket science...

Mind you for SavageKeyboard (aka self-confessed blue-collar worker and PI) it probably is rocket science!

Further evidence that the Labour Govt have trashed the UK economy...click on link below from CBI (Confederation of British Industry) published today 27 January.

Key findings in the services sector are:

Business & professional services expect headcount to fall over the next three months (-20%).

Business volumes in the services sector fell in the three months to January (-24%), with the pace of decline accelerating from December. Volumes have generally been flat or falling since mid-2022.

Within this, business & professional services volumes fell (-16%), at a similar pace to the three months to December. The decline in consumer services volumes accelerated, with activity falling at its fastest pace in over two years.

Capita, like many other businesses, will continue to cut jobs/staff over the next few months. Obviously, there will be a sharp rise in official unemployment figures over the next few months.

Labour destroyed the growth in the UK clearly evident in June-July 2024 with their stupid budget which targeted businesses with an increase in NIC and minimum wage from April 2026 onwards. Businesses already operate on razor-thin margins and need to report sound financials and profits to their banks, stakholders and shareholders alike.

Reeves kept her promise not to tax 'working people' but at what cost?! I think if you asked 'working people', which would you choose: Option A Pay more tax and keep your job, or Option B Pay no extra tax but you (and/or your colleague/s) may be retrenched? I'm pretty sure 99% of 'working people' would take Option A. Needless to say, this is a sad time for businesses in the UK who need to make very tough choices. It is even tougher for those people and their dependants who are finding themselves without a job. Well done Two-Tier Kier aka Farmer Starmer, and Rachel Thieves from Accounts.

https://www.cbi.org.uk/media-centre/articles/private-sector-expects-activity-to-fall-again-growth-indicator-january-2024/

@Pokerchips 'When it comes to the economy and the complexities of the financial system Trump is actually somewhat clueless ..'

I'd take Trump over 'Rachel from Accounts' any day of the week and twice on Sundays!

@daibelts It seemed to me you were being condescending. Hence my sharp reply.

@SavageGarden - You never mentioned the last article which I posted from Begbies Traynor Group at 13.56 today. Funny that! Hence, I the reason I posted an article at 17.02pm today...from a source (Daily Mail) I thought you'd be able to read - after all Daily Mail articles can be read and understood by 10 year olds! So it should be understood from someone as economically illiterate as SavageGarden! Lol

In addition to Roc's statement which I posted at 15.13pm today, I leave SavageGraden with these comments from Julie Palmer, Partner, Begbies Traynor:

“As we start a new calendar year, there is very little to be excited about. Across nearly every sector, there has been a unprecedent level of growth in the number of firms who are at serious risk of entering insolvency in the next 12 months. The fact that the distress is being felt across almost every corner of the economy highlights how difficult the outlook is for UK businesses right now. After a disappointing Christmas, consumer-facing industries, in particular, are feeling the strain, with rising operational costs and higher wages adding to an already difficult situation. With many such businesses already operating on thin margins, I fear the current situation will undoubtedly push some over the edge. Indeed, at a time when consumer confidence is so volatile and borrowing costs look likely to be structurally higher for the foreseeable future, the situation feels very precarious. Sadly, this has only been exacerbated by the tax rises and increase in national minimum wage levied on businesses during the October 2024 UK Budget which means the financial strain on businesses will only increase later this year. Even at this very early stage, the outlook for the rest of 2025 is uncertain, at best. Many companies are clearly struggling to adapt to the compounding challenges they face and there is no easy fix which will be very unsettling for businesses who are struggling to tread water already. So, in the absence of a reduced tax burden and a strong economic recovery, I expect the number of insolvencies to continue to rise in 2025 as firms struggle to cope with a perfect storm of rising costs, financial instability and fluctuating market conditions.”

SavageGarden's Labour Govt's first budget (14 years in the planning!) has resulted in the 'green shoots' clearly evident in June-July to be quickly snuffed out - and now the UK economy is in a pitiful state. All thanks to Two Tier Kier and Rachel from Accounts October budget. Well done.

@daibelts 'Why is it a no brainer?'

For the reasons I have mentioned in all my posts about Zephyr to date. If you're interested, read them. If you're not interested, DYOR.

@Janman. Good move to buy into JD Sports. If you haven't already done so, open an ISA account to keep your investments and returns tax free. It will build nicely over time - compounding returns and all that can make you rich in 10-15 years. Only deposit into the ISA, never, ever withdraw.

BTW Don't be in a hurry to sell out of JD Sports - £1.25 to £1.50 will be achieved soon enough, so buy, hold and forget about any 'noise'.

@Trisor I heard that Rachel from Accounts has appointed SavageGarden as a special advisor to help her understand 'what is a recession'.

At the same time, SavageGarden may be able to help his idol Two-Tier Kier aka Farmer Starmer to understand 'what is a woman'! Then again, SavageGarden will probably patch-together some back-and-forth answer to that as well! Lol

@SavageGarden. You are in denial about your socialist Labout party. Click on the article below for more evidence of the fall-out from Reeves budget...

Sainsbury's costs have risen £140 million due to Labour's budget. As a direct result, Sainsbury's will now cut 3,000 jobs and close 65 cafes as part of plans to 'simplify the business amid a particularly challenging cost environment'. 'facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest'. Click on the article below.

Make no mistake about it SavageGarden, this is the 'tip of the iceberg'. With the 'double whammy' of the NIC tax rises and the higher national minimum wage due to come into effect in April - it's dire times ahead indeed for businesses and employees alike.

BTW SavageGarden the best way to bring in more revenue is via a fast growing economy, not higher taxes. Once, Britain used to be 'open for business', under this Labour Govt, Britain will fast become a basket case - i.e. unable to raise enough taxes to pay its debt. Labour policy: tax, spend, repeat...

https://www.dailymail.co.uk/news/article-14321315/Reeves-supermarket-jobs-blow-Sainsburys-Morrisons-Budget.html