Member Info for kularatnam

Markets in general started with gains. Hope CPI follows suit. GLA

Margins - a magic word - can be achieved either by increasing your sale price or reducing your cost base. CPI is on target to reduce £160 mn in cost on the whole, that is equivalent to 6% on its cost base. So margin improvement of 6% already there. A small increase in pricing - 2 to 3% inflationary effect - we are there @10%++ in addition to the existing margin levels .Looks pretty good. Surely Royal Mail contract should be very attractive .

Capita pensions is a profitable division , though small. Did some search and found it doubled its T/O from £88mn in 2020 to £178 in 2023. 2022 was £138.

Profit after tax for 2023 £15mn, almost 10% of its T/O.

Have some good clientele and prospects for growth. Also see the new offerings:

https://www.professionalpensions.com/news/4171947/capita-pension-solutions-launches-service-offering-db-schemes

GLA

Why SP dropping???

Election fear - Labour Winning ???

CPI work taken inhoue by new Govt !!!

Good very good. Get rid of high cost low margin contracts. Get compensation for severances before expiry of contract terms.

Become nimble & profitable.

Good for CPI.

Labour victory will boost share price.

Looks like some form of agreement has been reached on Financial Restructuring. Very complex. But I dont think their financial/operational troubles have disappeared. Long way to go. The reputational damage done in the past few years will continue for sometime.

https://atos.net/en/2024/press-release_2024_06_30/market-update-june-30-2024

GLA

@Okey "The incident happened when the cabinet office was actually part owner of SSCL, they then sold out soon after, probably to cover their own @rses."

Could you please be specific as to the date or period of the incident if you are aware of, because this was reported in May 2024.

While it is interesting to delve into the affairs and price action of Sopra Steria (SS), I thought of focusing on Shared Services Connected Ltd (SSCL). SSCL was, as I said before, a JV ( 75/25) between SS & Cabinet Office since its formation in 2013. In October 2023 it became a fully owned subsidiary of SS. During this JV period SSCL secured large number of contracts with the govt. Now with the Data breach of MOD , quote "Shapps told MPs that the government has “not only ordered a full review of work within the MoD, but gone further and requested from the Cabinet Office a full review of [SSCL’s] work across government”. This investigation is already underway and, once it concludes, the company may face sanctions, the defence secretary suggested."

What all these events mean for CPI:

1) SSCL is no longer a preferred contractor as it is not part owned by GOVT.

2) SSCL along with ATOS do not have " clean Sheet" so to say.

Less of a competition not only to CPI others as well.

IMHO. GLA

@Kipper9 , fairly a large firm. Hope CPI gets its Mkt cap aligned to T/O soon to a reasonable level.

The other interesting thing about SSCL is that it was a 75/25 JV between Sopra Steria and the Cabinet Office & Cabinet Office sold the stake in October 2023.

https://sscl.com/shared-services-connected-ltd-to-become-wholly-owned-by-sopra-steria/

Go to SSCL website & see their client list.

UK opens investigation of MoD payroll contractor after confirming attack.

https://www.theregister.com/2024/05/08/uk_opens_investigation_into_contractor/

Actually the named contractor "Shared Services Connected Ltd (SSCL) " is a subsidiary of Sopra Steria, itself is a French company and who was listed as a peer in the Capital Market presentation.

The following link will also shed some light.

https://www.consultancy.uk/news/37636/sopra-steria-launches-new-uk-consultancy-division

"The economy grew by more than initially estimated in the first three months of 2024 as the UK emerged from recession, revised official figures show.

Between January and March, the economy grew by 0.7% the Office for National Statistics (ONS) said."

Much better than some predictions made on this board.

https://www.bbc.co.uk/news/articles/c6p2r9xzde4o

@Culley01, thanks for that observation. you are correct. Serco is profitable . Not directly comparing CPI with Serco. But my thought that the lowest points in terms operations was over with 2023 results & the leadership with the exit ofJL. SP has also bottomed out @ 13p levels, and with some visibility of progression, not seeing much upside prompted me to say what I said. GLA

Serco is up 8% with a mkt cap of £2bn, we are one eighth of it. This is ridiculous. I feel it is poised for a take off , considering the recent developments.

Global-

The Global Business Process Outsourcing Market size is expected to be worth around USD 739.4 Billion by 2033, from USD 315.2 Billion in 2023, growing at a CAGR of 8.9% during the forecast period from 2024 to 2033.

Read the full article here

https://market.us/report/business-process-outsourcing-market/

See the potential for pensions

https://www.linkedin.com/feed/update/urn:li:activity:7211361643794952195/

I am not much familiar and good at technical analysis. Can anyone elaborate on the significance or the signals of " Death Cross" and " triple witching" please. We can test it today and coming days. GLA

@Simpiles, thank you so much for that elaborative clarification.

I actually tried to relate this to the 9% drop in revenue in the first four months , but as per your explanation the related cost also will pass. So no real or big impact on future cost base. That is good.

H2hoo -you are welcome.

GLA

@Simpiles

You seem to be familiar with the internal working of CPI. Just need a clarification. In case a contract is not renewed what happens to those staff associated with the work?? absorbed into other divisions or golden handshake!! Thank you.

Kipper9 - A summary from CHAT GPI

Searched 6 sites

Capita Plc's stock price forecast has shown a range of predictions from various analysts. The consensus for Capita Plc (LON: CPI) appears to be generally positive, with a majority of analysts rating it as a "Moderate Buy." The average 12-month price target is around 28.30 GBX, suggesting a potential upside of approximately 95.44% from its recent trading price​ (MarketBeat)​​ (Investing.com UK)​.

Despite some recent fluctuations and challenges, analysts maintain a positive outlook for Capita Plc. For instance, Deutsche Bank has reiterated a buy rating with a target price of 35 GBX, indicating a significant potential upside​ (MarketBeat)​. Additionally, the stock is seen as undervalued by about 27%, which may present a good investment opportunity​ (Simply Wall St)​.

However, it's important to note that there are varying price targets, with some estimates going as high as 40 GBX and others as low as 18 GBX​ (Investing.com UK)​. This variability reflects the inherent risks and uncertainties in the market.

In summary, while Capita Plc has a favorable consensus among analysts with a potential for significant growth, it's crucial for investors to consider the range of forecasts and the associated risks.

Will financial troubles at ATOS have an impact on Capita ? Your guess as good as mine.

https://inews.co.uk/news/uk-fears-financial-turmoil-it-giant-severe-effect-pip-nhs-3110917

GLA

@Okey- Dokey

Hope we are lucky the Sixth time with " turnaround king". GLA