Member Info for Kipper9

You do realise that the article comes from fool.co.uk? I wouldn't pay it much mind myself......

Certainly won't hurt Sharehead. What with other opportunities like the Atos situation, this can only be good for Capita. I really get the feeling that we are at a huge turning point with the company. Eventually, the SP will reflect this, once the short term traders have bu**ered off......

I listened again to the interview with Richard Staveley. He starts off by describing Capita as 'the biggest blindspot in the whole UK stock market'. Further on, he says 'in 12 months time people will look at £225m market cap and wish they had bought'. (that's 14p)

He recons it's only the 'City' that has a bad impression of Capita; going right back to Hislop & his Private Eye articles calling it Crapita. Actual customers like what Capita does for them. Too much office space is reducing as they exit and work from home. Pension is sorted now.

On the numbers. We are going through a 'stabilization' phase he say's. Debt at £180m. This year £215m of EBIT on roughly £2.7bn sales. Basing his calcs on just a 6% margin he see's FCF of £90m a year. Remember, AH wants 6% to 8%, so at the lower end. Also, SS said in their last results they were achieving 9.4% & target 10%+ in 2024. So if Capita can equal this margin it would substantially increase this £90m FCF going forward 2025/6.

Here is the interview for those who haven't seen (starts from 3min 50secs)

https://www.youtube.com/watch?v=UPfCJ_v51Jo

Crow, was hoping for a retrace after yesterdays whopping 7% jump. But not to be, well yet anyway. SP could 'drift' up to H1 on 2 Aug (20 trading day's), but 14p could also be the new support. 'Closed period'(?) for one month now so no RNS's, but other Funds could follow Rockwood after excercising their slide rules and come out. Hopefully so.

Interesting that Richard Staveley from Rockwood said so many things that we on here have been saying for a while now. I looked at his CV. He's a very experienced investor, that other Fund Managers will take notice of. Did anyone find out how many shares he had purchased?

Looking forward to your contributions.

+6.95% today. If there does happen to be a slight retrace over the next few days, i (among others) may be tempted to go in again. If doesn't happen, an still ok with what i have. Perhaps 14p will be the new support with new higher high's & higher low's. All to play for........Fearless, you there??

Welcome back Sharehead.....

@Trisor, similar, 258,058sh with an average of 23p, after averaging down the last time many times.....lol. We may get some retracement tomorrow/Friday to go again, but if i'm honest, i have enough here.....good luck all, however much invested.

@Capitalizer, to your comment the other day re going in big, that's how you become a millionaire. Are you any more inclined to do so after today's news?

@NF, are you going to live up to your 'fearless' reputation and pony up here? Get that till opened you tight t*at. Or is it a till like Arkwrights, and takes yer f...f...fingers off??

Oh no! Not politics! Don't give them any excuse to hijack the board just when things are getting interesting!!

Lol.............

Kula, i would echo all of that and thanks to Taltbong + unhooked

Maybe now that Rockwood have put the slide rule over Capita and liked what they see, other funds may weel follow.

Long interview. Talks about Capita from about 3 min 50 secs. For 6/7 minutes. Excellant. Interesting FCF & Ebit numbers. He has seen what some on here have been talking about for a little while actually.

I found this article on Techcrunch. Generally it's talking about tech companies moving their clients over to Cloud from on-premisis systems & incorporating AI. Seems to me relevant to Capita in a lot of ways. Look at the valuations of these companies! Are they pointing the way to what AH has in mind for us. I found it a very interesting read, what do others think.....

https://techcrunch.com/2024/06/29/sap-and-oracle-and-ibm-oh-my-cloud-and-ai-drive-legacy-software-firms-to-record-valuations/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAMukPyAY9BtvW_HS2wt62dzKEiKGB_ocMPmQDrftaIzmj8MxCzjdpbO29gKsI9MUo_DjsECV3S6CS2Zic6WDIjt9NOP4T0wLOJS11XRW3jZjXXUR8Re8qsBYSn7B9ap_nWxZR-2-JD-VSdMouKKtG6G41kLxrQMs68qHXPJb6-Al

@Terry, don't bother going onto VOD. Ruined by some idiot called Gutter(something), seems to have an IQ of a 3 year old!

@broom, SS achieved 9.4% margins in 2023. Their target in 2024 (FY Results) is to increase that to 10%+. If they can do it, why not us.

@Rock, share price manipulated down & up, within a band, for the 'manipulators' to make money. Strongly felt that for some time. Some disjoint between the company and it's share price. Shorts closing is excellant.

@Terry, he/it will move on if you don't reply mate

To your point re margins. The Atos situation is proving that the low margin/high revenue model is outdated. Unsustainable. Clients either pay a fair price or the business is turned down. SS seem to work on circ9.5/10% margin, so that speaks to kura's example with Pensions. 10% across the board, together with £160m of savings, would/will transform the bottom line.....in time. FCF for one year would = current market cap!

That's good research kula, thanks for sharing

Am going to nibble a second time if i get a chance of 12 something

I was only thinking last evening that the one month closed period, prior to results 2 Aug, starts on the 3rd. So if any news via RNS is coming, then it would have to be today.

Am i correct with the closed period being no news for one month prior to results? Seem to remember reading it....

@Fran, have heard this said before actually. Was that in the day of Pindar & Parker? Or later under Lewis? Surely not something that happened under Rod Aldridge.

I can't see AH acting in that way.....

Trenners, i got impatient 3 years ago! Still am....

Yep, H1 soon, but not holding breath. Am still possitive on Capita tho, just it's taking so damn long. Should have had a AH at the helm years ago.

Okey, thanks for that. I was trying to make the point (poorly) that the amount was an awful lot of debt to service, and a massive increase over 12 months. Am in no way suggesting SS are in the same financial situation as Atos. Myself, i don't see the ICO's decision being anything to worry about unduly. Not making light of it, but on the scale of recent hacks, it was low grade. Any news relating to SS/Atos, to my mind, is very relevant. Capita could do well from a compettitors woes.

Atos now has a market cap of just EUR109m. Debts far in excess of that; it all reminds me of the Cineworld situation....