Member Info for kularatnam

So what is the source for your information to say "Pretty clear UK is in a sorry state of affairs".

But as you say every one / organizations has a motive to say what they say, including all of us here.

SK, A good find. But it would have been much more useful if you also say what relevance all what you said has on CPI or CPI share price.

BTW UK is not doing all that bad economically. In fact it is improving. Have you read about PMI.

The seasonally adjusted S&P Global UK Manufacturing Purchasing Managers' Index™ (PMI®) rose to a 20-month high of 50.3 in March, up from 47.5 in February and above the earlier flash estimate of 49.9. This was the first time the PMI has posted above the neutral 50.0 mark since July 2022.

GLA

All are pinning their hopes on AH to turn CPI around. Has anyone gone through the Annual Reports of SDL Plc during his time there. It is very interesting.

Year before he joined the Revenue and Adjusted profits were £267mn & £21mn & that for the year before takeover were £376mn & £37mn. Huge achievement, though from a relatively small base compared to CPI. But how he set about it , three year plan etc are in the first year -2016- report. BTW, Xenia Walters was the CFO during his time. GLA

Simpiles, Good for your research. What is your take on this. Has the property rationalizing already been completed and the benefits factored or they are yet come. Thanks.

AIM, thanks for this note. Very informative and focused for the future. Where did you get this from?

Savage & Simpiles, thanks for those insights and logical analysis. But why would they move from India, which is supposed to be more cost efficient operations in terms of wages skills sets etc. I thought it should work on the opposite direction. You think politics needs to play a part.

Savage, you are correct. Redundancies will come at CPI. Wont that benefit in cost savings?

Being a Tech expert AH, unlike JL, will /should use AI in his efforts to reduce cost. Though it may result in massive job losses , overall there will be benefits to all. The fact that he announced cost savings of £100mn just after assuming duties, even before scrutiny of the functioning of CPI,speaks volumes. More cost cuts to come.

The Article below speaks of 8 mn job cuts, roughly 25% of the work force. Apply this to CPI, it is massive- even with a smaller percentage.

Good times ahead.

https://news.sky.com/story/ai-risks-up-to-eight-million-uk-job-losses-with-low-skilled-worst-hit-report-warns-13102214

Is in SA.

https://www.linkedin.com/feed/update/urn:li:activity:7176544061661601793/

Glow, Thanks.

Again , the way the awarded shares are structured to be disbursed is interesting -

(1)Vesting in every six months (2) the numbers are not equal or an identifiable fractions or percentages (3) timing of the announcement, this was known in January (3) if he had been particular about the cash amount he forfeited he could have requested the awards in cash over this period or shares equivalent to the cash value at the time of vesting, as of now he has a book loss of one All these point to bullishness of AH

Finally the RNS states "The Buy-Out Award may not be settled with new issue or treasury shares" - what does this mean? GLA

GoTo , I think you are correct. To put numbers to it the incentive he forfeited equals to £ 2,386, 432 ( 12046605*19.81). But what puzzles me is when he is about to receive millions of "NILL" paid shares why did he buy shares in the market. I am sure that is to show that he has confidence and there is value in this company much more than it is valued at present in the market. GLA

Is talked about in this board. If that happens that is fine by the long suffering investors. I think the ideal candidate to takeover this company is the UK Govt. To me they and the company management are the culprits. I believe of all the businesses this company does , bulk or may be 80% comes from the govt and connected entities. What this company does is, in the name of competitive bidding, get these contracts at the lowest prices that just covers the cost without keeping adequate margins to cover finance costs and shareholder returns. The company , mgt and the staff are happy because they can keep their positions with fat pay packages. In the process shareholders have to dole out funds - rights issues and that too how many and how much ?? - to keep the company afloat. In effect the shareholders subsidies the Govt and the jokers at this company or it is a kind of indirect taxation. No point boasting about winning contracts. There must be a change in the way they do /win business. Otherwise this company cant survive and we lose.

Like all the other business sectors, Gambling business also is/will be, disrupted. Will have to wait and see the take from 888 in their annual review. For the moment what BBC says

https://www.bbc.co.uk/news/business-68304137

Hopefully there is more positives for the industry - cost reduction. better customer engagement & coverage etc.

Lenders and Vehicle dealers/brokers are not going to sit and wait for some ruling to be imposed by the FCA to hand over cash Bonanza to vehicle owners. It is going to be a real legal battle .It might take a long time to conclude, not just six months. See the point of view of a legal expert.

https://www.am-online.com/opinion/2024/02/23/executive-view-the-fca-and-martin-lewis-where-s-the-harm-anyway

New business from Winterflood Securities, in trading Govt Bonds.

https://www.ft.com/content/0a419762-203b-49b0-a63b-0e03e831375e

When LLoyds can make an estimate, CBG should be able to. we may see some numbers along with Half year results - may be less than £100mn.

Https://www.ft.com/content/2bcf29d6-2f47-4bd0-b7fe-58b4b7ee43bb

Syn & Chelmo, you both provided useful information and are positive like me. Hope SP rises by 10% today.

Is this FCA investigation not going to produce large fines or penalties and pay outs? The way SP is behaving - stabilizing and moving upwards, and large volumes - points to that.

As I see , it is all about discretionary commissions (DC) charged by CBG and other lenders. The vehicle buyers came to realize that they have been overcharged after FCA banned DC in January 2021. But there is a catch. The ban is not retrospective. That is why many lenders are challenging the claims made by car owners saying that the rule was not in force for period prior to 2021. So it is not going to be easy for the FCA to award compensation. Further the lenders have not breached any rules and therefore, even if awards are made, fines or penalties will not be imposed on the lenders as they have done no wrong. Right. How much involved.

I saw in the FCA website, it says , that by banning the DC , customers would save £165 mn per year. So isn't this roughly the amount car owners will get and become a charge to the lenders. Doing the numbers , the 14 years past it would be £2.3bn. So it is not going to be tens of billions. CBG share could be a small. FT reports it would be around £110 Mn, RBC estimate, one year Dividend.

https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models

https://www.ft.com/content/474f5c90-b336-4576-bf12-0f88d0ccde6f

GLA

SYN, why do you want yourself ignored?

You are correct. Royal London is reporting the transaction. Actual shareholder who bought the shares 5.30 %is "HSBC Global Custody Nominees (UK) Ltd". Good news.