Member Info for JordiMendes

@Trenners Exactly what AI has been brought into do. Automating repetitive tasks which hopefully then remove high upfront costs (infrastructure, employing and training staff etc). Hopefully will be a "pay-as-you-go" model which AI will allow companies to implement.

So a lot of the pipeline with be AI customers/work (whatever you want to call it). But as you said, short to medium guidance is not great and everyone will be waiting around again. I probably will sell another large tranche when we see around the £3.50 mark. When that will be, who knows.

So many different opinions from so called experts as well. Canaccord believe the turnaround is at an inflection point now and gaining steam, yet others now completely disagree.

Analysts are often way off, however the current sp is obviously with the bears. Ultimately Adolfo gets AI working for Capita or he doesn't. As others have said, Capita have a bad rep with some that they will never get rid of, but Adolfo needs to block out the noise and complete his mission. I really don't have a clue if he will fulfill it. I thought he would at one point, but I'm really not sure now.

Definitely a different Capita Adam.

Capita are building a sales pipeline of higher technology opportunities, however there is no guarantee the contracts they get will become profitable. AI should be the future, but the current costs seem to be crippling them. FCF should still be made, even with the current pension debacle, however I'm still not convinced. Always adjustments which muddy the waters. Ultimately, at what 18 pence old money, this is still priced to fail, it's a bet on if Capita's tech will reward them with a more streamlined approach, less costs and bigger profits in the future.

@Trenners "but the £5m setup payment for the CSPS contract - spread over 7 years - is going to leave a massive hole in the 2026 cash flow and profit because our costs to fix this debacle must be immense"

Must be immense as in they definitely are? I don't disagree as the whole debacle has been a real nightmare but the pension contract was classed as the "jewel in the crown". But agree missing targets is obviously not good. Won't lie, I've found trying to understand the nitty gritty details of the results difficult. They seem poor and the market agrees, I'm not sure what to take of Helen's email tbh.

I think there may be some confusion between the two pensions businesses here. The difference between our free cash flow guidance of £20 - £40m and net debt movement is the costs associated with the closed book Life & Pensions business exit. This follows the agreement to hand back the remaining contracts in this space which was announced last year we’ve said this will be £100m over 5 years, front end loaded over the 5 years, but eliminating a major long term cash drag from the Gorup. The £20m - £40m free cash flow is inclusive of the CSPS contract.

At least all targets are above the current sp. I think if we see £3.50 soon, I will flog the lot and possibly look to enter back at a later date.

Helen from IR has reiterated this again: "The cash flow in 2026 is expected to be positive between £20-40m after a number of negative years – so that will be the first milestone."

"Emailed AH and PA asking why the poor imo IR department had RNS over 2 days when have 3 days to report 🤷 personally I'd have staggered the RNSs"

Any response?

Helen is quick with responses, but yeah I agree they could probably do things better. Not on a rant here but seeing this is 18p or so and brokers not sure if it will rise much, it is very worrying. All fcf going to be eaten up?

Brockton said his earnings-per-share forecast for 2026 had been cut by 11%, with free cash flow expectations reduced from £16 million to £2 million, inclusive of contract exits.

^

This for me is a huge worry.

Just copied an pasted the stuff about Deutsche Bank after gotnorolex mentioned it

Capita’s share price is under pressure after Deutsche Bank raised fresh concerns about the company’s revenue outlook, a move that has unsettled investors and added to recent negative sentiment. The bank downgraded the stock to Hold and cut its target price, reinforcing worries about future growth

Haha, I'm still in this. It is ridiculous we're at about 18p old money. Not much above the likes of Tullow oil who are a sure bet to go bankrupt with their balance sheet. Did buy some at 6p but literally a couple of hundred quid for a gamble. I'm still fairly heavy in this and just fuming tbh (if you hadn't have guessed!). I'll stop with the silly rants, but this really is a farce now.

Not Capita. Absolute dog

Sorted soon? Who told you Adam? I know people at the DWP and there was an all colleague call with Barbara Bradley, the Director General yesterday. Pensions were discussed and although nothing new was said, there was a discussion about the need for hardship payments because of late payments. Watching that video that was posted earlier wasn't great either, Capita has missed every deadline set.

Agree with this Hexam, the fact we're at these levels in 2026 is unforgivable. There will be more business exits for the next 2 years or so. Dreadful.

Typical Capita!

I think the main argument is will there be more of this restructuring/one off payment bullsh*t moving forward?

Riiiggghhhhttttt

Just moving north? Funny, could have sworn it's 5% down again. I could have pretended I sold some yesterday but didn't.

"Are these cost savings a business exits real costs to make a streamlined profitable and valuable business or are they including hidden costs as the business carries on shrinking?"

That's the million dollar question. At lot of these "one off" costs aren't one offs. I have sold 30% of my shares now as luckily was still in profit (much less than my paper profit a few weeks back). Too much "jam tomorrow" and with the thinning margins, I don't think Capita will turn this ship fully around for a very, long term, if ever.

Hard to admit it but I agree aim. Loss making and thinning margins = not good!

You still just make stuff up with your pretend shorts and then you're long 2 seconds later, but I agree with what you have written.

My own fault as reading through emails from IR again just shows what an absolute cowboy organisation this is.