RE: Market Makers13 Jul 2024 09:59
@DARK, just for the sake of something to do on a wet Saturday in Yorkshire i thought i'd try & make some comparison to Serco and Sopra Steria. It might be like comparing applet to pears, i don't know.
Serco have a Mkt Cap of £2bn on Rev of £4.9bn. This year they paid a divi of 3.41p. DivMax have that at 2.2% yield. SS (in Euro's) Cap 3.8bn, Rev 5.6bn. 4.65c divi. 3% yield. Both companies achieve circ10% margin. Not sure on Serco debt but SS have 960m to service, as well as the divi.
AH is quoting 6 - 8% margin for his calcs. But, if both these companies do 10%, why not Capita in the future? Our debt might well be heading towards zero (+/-) in 2025/6? So, say Capita rise to 100p, that would equate to a divi of 2.2/3p.
Are we looking at another RR? 68p Sept '22 to 450p recently.