Member Info for JordiMendes

Hi Jordi

"I expect we will cover our capital allocation policy in June, which would include dividends, but we are likely to want to see full year 2026 cash flow performance before making any specific guidance."

It will just be another login Aim uses. Quite entertaining tbf.

Have listened to that already and not going to pretend it's great news for Capita. That said, most of the work is fine (which obviously we won't here of), just when things don't go right, that's what we hear of. For any company, it's the same, just the nature of what Cpi do, we're gonna hear about it. If Amazon have thousands of complaints, it's not going to make mainstream news.

Re the CS pension, I know a fair few civil servants and 1 that didn't get their lump sum. Was sorted, but still, not great it happened in the first place. Let's see what contracts Capita get moving forward. They are placed for growth now, just need to prove it. For me, fcf is a good start and this is priced too low. It was over 400p before the contract centre agreement.

Good post capitalizer.

Regarding the contact centre, think it was you that said this should soar if CPI bin it off. Let's hope there's no long term stickiness. I for one am quite pleased they have taken action and it's been received positively. However, it is concerning seeing shorts so high and if the AI strategy does fall short, then us shareholders are doomed.

The data breach hadn't really reached mainstream outlets, but the Telegraph did report it on yesterday though. One area where CPI really needs to get a grip.

Be interesting what Canaccord say in June after the investor update.

They have said:

"The shares' 0.17x CY26e EV/Sales, 1.9x EBITDA and less than 4x PE put it materially below key UK peer Serco and global BPS names on 2-3x these multiples.

As Capita delivers on its mid-term guidance of low- to mid-single-digit growth, 6%-8% adjusted EBIT margins and positive free cash, we believe the shares should see a material re-rating. Canaccord said its 900p price target uses conservative assumptions and implies more than 3x upside"

Obviously nothing new, but interesting their target is using "conservative assumptions" as if that is the bare minimum.

So hopefully divs next year 🤞

I asked the following

"With the latest disposal streamlining Cpi and hopefully allowing them to now grow, when do you think dividends will be paid again please? I appreciate fcf will need to be achieved, but this will be this year. Is the plan to achieve fcf and then consider a dividend, or would there need to be multiple years of achieving fcf before this would be looked at?"

Response:

Thank you for your email. I think it is more a case of the former ie we have delivered positive free cash flow and then review our business plan (3 years) to confirm we are expecting sustainable positive free cash flow.

Regards

Helen

@MarcusExile agree it looks like it was the sh*t they inherited, otherwise there would have been loads more articles about it. Still, this project has been an extremely messy one. If they do manage to sort it, then hopefully that will lead to more contracts in the future. The pension contract could be lucrative and as Cannacord said, it's the jewell in the crown

Yeah, this latest hiccup is shocking tbh. Luckily not much major press about it. First article (before the civil service world one), was last Friday. But is really poor once again from Capita. Really poor.

Aim is the main man tbf

Don't think the drop was anything to do with the article as there was an article about if on Good Friday and no drop when we opened today. But it is more shoddy work from Capita

Not ideal at all. Capita really need to get a grip.

Fuel rationing 😂😂😂😂😂.

God there are some absolute morons on this forum.

Ocado did 65% from Dec to Jan

True bubbles, but they usually don't just punt on whoever. They do their due diligence and then short accordingly. Obviously they do get it wrong, but still, not ideal.

But why pick Capita?

Hmmm, not entirely comfortable shorts are so high I must say

Never a good thing. Suppose could get a "squeeze" at some point though.

Tbf shorts are high and the macro environment is obviously not great. 200bps improvement operating margin from 5% will be great, but Capita have flattered to deceive, so it still is "jam tomorrow". The pension is the jewell in the crown and with that on the right path and the contract centre sold, things should be at last going in the right direction. The current price still has Capita pretty much priced for bankruptcy. Let's hope at last this does pick up but shorts so high is

Be interesting if this is hit.

Margins already grew by 140bps, but the sp nosedived due to the contact centre and the "poor outlook". With that hopefully sorted, this should really be trading at above 400p now.

And with margins around 5%, a 200 bps increase is around 40% improvement in profitability. If management hit all their targets, this should be 800p easily. But we've been here before with Capita.