Member Info for kularatnam

Though not published at the start of the day , it finally appeared just before the AGM. Overall I thought it was very positive - Content & Data , Digital & media , the larger components of revenue showing improvements in profitability.

The reduction of 1000 monks is a big thing. To put this in numbers , average cost can be between £ 50,000 - £100,000 per monk, giving a saving of £50 to £100mn. The net impact for 2024 could be slightly less after accounting for severance cost . But full benefit would be felt in 2025. The target EBITDA of 20% appears to be in sight.

I am also particularly impressed by the new COO who, I think has been brought into the group to calm the waters, has been very positive and optimistic about the future , when he was addressing the investors at the final results presentation. I am very bullish about this company. GLA

"Ter Haar and Sorrell are part of a European AI tour delivered by Google and MediaMonks, which is owned by S4 Capital, to help clients address brands’ and agencies’ concerns around AI.

One of the first workshops of the tour, open to advertisers but closed to journalists, was held in London this week and included a "fireside chat" with Sorrell and Matt Brittin, Google’s EMEA president."

Why did Google/Alphabet choose Media Monks among all the agencies , far bigger and smaller, for this tour ? The answer is obvious - they are the undisputed leaders in this segment. I hope this will enhance the standing and augur well in their engagements new and existing clients. GLA

SMS may say at the AGM why he deviated from tradition.

Https://www.meioemensagem.com.br/comunicacao/media-monks-assume-conta-de-pringles?utm_source=Social&utm_medium=LinkedIn&utm_campaign=pr_pringles

I don't know whether this info was already reported and whether agreement covers globally or only for the LATAM.

GLA

Bullish

https://www.defenseworld.net/2024/05/29/capita-loncpi-stock-price-crosses-below-200-day-moving-average-of-17-32.html

Excellent performance and reshuffle of senior mgt, in line with overall strategy of CPI.

https://www.professionalpensions.com/news/4266334/capita-pension-solutions-posts-revenue-rise-rejigs-senior-team

Next week.6th June, normally accompany a Trading update. Hope to see some good news.

GLA

Https://blogs.nvidia.com/blog/media-monks-ai-podcast

This may be bit old but looks like some new line of business - TV Broadcasting- that has huge potential!!!

https://www.sportsvideo.org/2024/04/12/op-ed-the-clouds-the-limit-pioneering-cloud-based-tv-production-with-itv-and-media-monks/

https://www.linkedin.com/posts/vinicius-galera_more-of-the-amazing-work-with-itv-and-mediamonks-activity-7185860955111661568-KXRg/

The Interview missed his stint @ SDL what a remarkable story that was !!!

Something to laugh at ( some of you all may have already heard it )

"Our Tax System explanied

It goes like this:

10 men go out for a beer once a month.

The bill comes to £100.

They decide to split the bill in a similar way to tax bill.

First four men (poorest) pay 0

Fifth pays £1

Sixth pays £3

Seventh pays £7

Eight pays £12

Ninth pays £18

Tenth (richest) pays £59

The men are happy.

The pub owner decides to drop the price, their bill now comes to £80. What do they do to split the £20

fairly?

The publican suggests:

First four men (poorest) pay 0

Fifth goes from £1 to 0

Sixth goes from £3 to £2

Seventh goes from £7 to £5

Eight goes from £12 to £9

Ninth goes from £18 to 14

Tenth (richest) goes from £59 to £49

But the men aren’t happy….

The sixth man points out that he only saved £1 out of the £20 but the tenth man got £10. The seventh

man agrees, asking why he only got £2 when tenth man got £10. The first four men were also

indignant saying “we didn’t get anything at all….the new system exploits the poor!”

So the nine men surrounded the tenth man and beat him up. The next month the tenth man doesn’t

show.

When it comes to paying the bill they found they didn’t have enough money between them to even

pay for half the bill.

And that, the article concludes, is how our tax system works. The few who pay the highest taxes do

tend to benefit from tax reliefs and reductions. Attack them for being rich and the risk is they may take

their wealth elsewhere.

For those who understand, no explanation is needed. For those who do not understand, no

explanation is possible.

About Us

Thank you SK for your thoughts on UK inflation and Interest rate scenario.

I missed couple of points earlier.

The market has digested the Trading update positively because it was not "Punished".

What is your view on Capita - "Negative", "Positive "or " Neutral".

GLA

SK, you needed some clarification as to why I said positive about " in line with expectations". Sorry for the delay.

I am a layman and didn't use "positive" in the very technical sense. In my view for example, I set a target and I don't achieve it, then it is a negative result, the opposite of it is obviously is "positive". That is how I look at it. Also my observation was based on overall context of the release , there are many, some of which I already covered. I don't delve into and revel on too technical stuff.

BTW , what is your take on April inflation data released today.

I see a lot of positives from this announcement.

1) Market didn't react so negatively as some predicted before trading started - leave alone 10p target.

2) A first in the history of CPI to come out with a Trading Update before an AGM. Shows clearly the transparency and openness of the new management and its character

3) Overall the update was positive with the message " trading in line with expectations" repeated many times shows they are not missing on targets and are confident in what they are doing. This coupled with cost cutting efforts which are according to plan should yield positive results going forward.

4) I note some are going for the AGM. Their comments are welcome.

5) If the SP stays above 14.50p , this announcement has done well.

6) It is just five months under the New CEO and his team and will take sometime , 6 to 12 months for some of the initiates to materialize like new and big contract wins ( particularly from private sector) impact of cost reduction etc.

GLA

GoCPI , thank you for your elaborate clarification. Based on what you said the awards in 2024 will vest only in 2027, provided various conditions are met. This also answers the query of JG 68. Shares have not been purchased or issued yet.

On the 2021 awards we may still get an RNS on Monday whether at least CFO got any.

In any event, I feel positive about the resumption of RSAs, surely some fundamentals seem improving.

Doomsayers looking foolish

https://www.dailymail.co.uk/news/article-13405785/ALEX-BRUMMER-doomsayers-looking-foolish-economy-bouncing-back.html

Where does UK stands in technology-

https://www.thisismoney.co.uk/money/comment/article-13405257/ALEX-BRUMMER-UK-second-United-States-G7-richest-nations-largest-number-triple-companies.html

Doesn't this award to the Senior Mgt show some positive vibes within the company? RSA was introduced in 2021 replacing the then existed LTIP and the first award made on the 12th May 2021 and this 12th May 2024 marks the conclusion of 3 year period. RSA was proposed to be a annual award scheme ,but I cant find them being awarded for 2022 & 2023. It is restored for 2024. In making the awards ,whether consideration was given for past performances and or incentive for future or a mixture of both , I don't know.

Interestingly of those who got these awards in 2021 , except the CFO, TW, none of the others are in the company now. Surely they wouldn't have been vested with these shares. JL was a disaster not only for the shareholders but for the employees as well.

https://polaris.brighterir.com/public/capita/news/rns/story/w95gedr

SK - It is very strange you post on this board while not having any stake. If UK economy is going from bad to worse , companies affected are not just CPI but many other listed companies Serco Mitie etc .

Why your linking of UK economy to CPI is irrelevant at the moment is because the problem with Capita is not just Govt contracts, but more to do with operational issues - cost, margins & profitability of existing and future contracts - which are being addressed now by the NEW MANAGEMENT TEAM.

Of brokers are not always prove correct . But I just compared CPI & BT from the same source for the coming one year. CPI range ( 18 - 40) - the lower point is about 40% higher than the current price level. As for BT the range is ( 98 - 290) - the lower point is less than the current price by 6%. My point is the brokers have done some work in arriving at these numbers - taking into account various emerging scenarios. GLA

https://uk.investing.com/equities/capita-group-consensus-estimates

https://uk.investing.com/equities/bt-group-consensus-estimates