Member Info for JG68

Totally agree dividend will change everything, but until they are able to generate free cash flow and not increase debt through operational costs, dividends off the table imo.

Having said last year that 23 would be the year that starts to bear fruit, I don't believe that evidence of this turnaround will be visible until earliest August 24, more likely December 24.

I can't really see how there is any real need for the new CEO to kitchen sink anything here, the reasons for negative cashflow and increase in debt were given at HY, ie hack cost, operational investments, pension costs, lots of one offs, and this caused an increase in debt , disposal monies not received until after HY.

But imo critically , JL has lost the market, and the day Adolpho starts I would not be surprised if this rose 10%.

LWHL

Yes it was and will add on further weakness rather than sell. You're right, solid well run company.

A bit miffed that someone here seems to have offloaded 9 million shares today at this price !!

We should all write to IR now today and ask Stephanie to pass on comments to JL, demanding the following:

He needs to either step down immediately or acknowledge and apologise to shareholders for the sp performance since he took over.

He needs to stop back slapping and patting himself on the back for how wonderful everything is.

He needs to acknowledge that this isn't a charity and business owned by shareholders.

He needs to acknowledge that despite all contract wins, significant director buys, disposals to reduce debt, the market has absolutely zero confidence in him and the board.

This is getting to the point of ridiculous now, how proud are you now J Lewis, total mug.

Well I took that extract from the HY update, but hopefully you are correct and it's covered, but reads like it will be cash draining for the foreseeable.

Could be more blood tomorrow if we follow the US

Not sure if this is also weighing on us:

We remain focused on resolving the structural challenges on the closed book Life & Pensions contracts within the Experience division and are exploring options for these to be moved outside the Group. In the first half of the year, we agreed a commercial settlement and exit on two contracts within the business unit. We deliver operationally for these clients, but the current commercial terms of the contracts are such that the business unit is forecast to be loss-making and cash-consumptive for the foreseeable future.

Does anyone have any idea of the sum of the parts are here?

They have several different businesses under the 3 divisions, I mean surely if they sold the entire experience division, they would clear the existing debt and have more than the entire market cap.

Not sure how the pensions would fit in to that.

Exactly me Terry, despite averaging down on both my tranches today, really in order to get out as soon as I can, ir at least drastically reduce my holding.

You know its a terrible day when all your buy orders get taken out accross the board.

All I can say is this better not go under or I'm fooled.

My 50k buy order was triggered 15.92

Now hold 550k of these sons of b-----s

Nofear

It's the UK market in general, awful place for investors.

We don't even get a bounce after US and Asian Market bounces. Absolute 5h1t show really.

At some point some buyers will have to invest here, I mean how cheap do UK assets have to go?

Because he's due to start in quarter 4 which leaves another 2 months , could be anytime really

73.90 sell UT

Wtf happened today, is this barclays related ?

What an absolute dog this really is

That is the only remaining risk I see here, at worst a capital raise to see though until legacy contracts completed, payments received, aswell as other upfront payments for recent contracts also received.

Having said that they forecast being casflow neutral at year end, and there was a fair chunk of cash in hand at HY.

So can't really see the need to raise further funds.

Friday probably crossover from Arriva, 50s more likely unfortunately

Looks like the 52 week low may be smashed on actual invasion.

Trenners

Agree with all of the above.

You know on the odd occasion when a CEO leaves the sp sores on that day, I have a feeling this might happen here!!

Let's remain grounded until there is clear evidence of improvement imo.

The market disappointment is around cash flow generation and net debt levels.

If we look at H1 22 versus H1 23 per slide 9 of Friday’s presentation we had an outflow of c£17m in H1 22 and outflow of £53m in H1 23– the main differences are c £9m cyber (we told the market in May), £5m repayment of furlough (announced 18 months ago), additional capex of £15m (announced in March 23). The remaining difference is £7m of working capital outflow – equivalent to 1 days trading. All of these should have been known and adjusted for ahead of H1 (except the £7m). We expect a similar performance in H2 – remaining cyber costs, additional capex etc. From 2024 many of these disappear ie non recurrence of cyber and an expected step down in the pension deficit payments to zero from the current £30m.

The cash outflow has increased debt and although we have made good progress on disposals, the proceeds were/will be received after 30 June. As a result we expect lower net debt and lease liabilities for the FY. These are both areas we are concentrating on clarifying with shareholders and potential investors.