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@ Culley - I completely agree, it will be August 2025 before we see any sort sustained upward momentum. Maybe a few spikes and then drops at different intervals along the way. I'm hoping for 45-50p then and I'm out, held this dog for too long.
Quite the opposite - the whole concept behind outsourcing is that it can be delivered cheaper. The economics stack up and rather than a reduction in the possibile opportunities, they will increase if anything.
Totally agree Mr NO FEAR, the ftse 250 was bubbling along nicely earlier, well over 100 pts and now heading south, for no other reason than the bloody Dow. BTW thanks for the recent info you posted. An interesting and informative read.
As much as the Labour party would like to bring everything in house, they simply do not have the expertise or infrastructure to do this. Outsourcing has been increasing in contract volume consistently for years and the incoming Labour government have far more pressing issues to deal with other than what mechanisum and process they adopt to deliver public support and infrastructure services.
Capita's reputation for delivery is improving and they have anumber of contracts that are either fairly new or are subject to extensions. Most of these would be considered vital infrastructure services and these would not be in line for any cuts, the axe will fall in other areas first. Hold your nerve. Nothing has changed for the worse in the last few months. AH's plans will be disclosed in more detail in June and when the market can see that he is a CEO that delivers, rather than one that lies and produces a heap of worthless 'spin' + moving the company towards profit, the price will rise.
Many of us are in too deep to bail out now and we just have to take it on the chin. Finally, all this bol**ks about target prices of 12 or 12.5 p - get real - thats day trader talk and most of you who say you will buy in at these prices are talking rubbish - as you dont have the spare cash to do so. Your just kidding yourselves.
I'm generally finding avoiding this message board at the moment is quite useful (saves on depressive reading), despite some really good posts, (a number of which from NO FEAR) from other members. Its a reminder of how downtrodden and depressing being a CPI holder is. A paper loss of us over 6 figures is like a millstone around mine, and anyone elses, respective necks.
There is no option to sit tight and hope that AH sows some seeds for recovery when he produces his roll out plans in June. This share has been absolutely hammered and its only proven results that will turn it round. Good luck to all those suffering.
I'm sure opinion will be divided, but I liked the straight forward way AH presented his answers to questions. When asked re dividend - unlike JL, an honest answer and no committment to actually paying a dividend, rather a suugestion as to how best to create value and progression with free cash. My overall impression is that AH has a plan and he's head down to deliver it. He knows there are no magic bullets and asking for time to deliver. What other options are there?
Kipper9 is right the more you eatch and listen to AH the more impressive he sounds. The guy has got a proven track record of delivery as a CEO in a range of businesses. I'm looking forward to the event in June as I think ihis plans and vision will have substance and real trrth to it. The markets have not liked Capita for a long time and I believe we now have a leader who will take us to a much better place and the markets will warm to CPI as plans come to fruition.
The question of debt related to leases is something that has always made wonder, in terms of who they seem to represent it in the accounts. I had always assumed that it would be listed as an annual operational cost and apportioned across the various contracts/operations. Its an area that keeps getting talked about in relation to overall debt and I wonder how aggresively they have look to cut property costs and move further towards a hybrid working model.
@ Trenners - well the good news is, we are not completely dead and burried just yet. AH might weave his magic and produce a turnround, the Jne anouncement and August H1 results are going to be very significant now, but as we know the current year is projected to be pretty similar to the last one. Any restructure will come at a cost and will increase short term debt. Any new business wins will help but its very much about the future and I cant see any upside for at least 18 months now, if at all.
Whilst JL is a complete c**t, there seems little point in continuing to focus on his substantive failings. I just hope the 100m savings that AH is proposing to deliver is just the start and the surgeons knife will extend further and cut out more of the unecessary fat that has existed for far too long. I cant see this going much lower, but as we know the market will manipulate all it can to get MM's and their buddies buying as low as possible. It would be interesting to know (not that us PI's will) what the II's take on all this is.
Like many others I'm nursing huge losses 100k + and accept the fact that can be the nature of investing. However, my decision were made on the most thorough research I could do (maybe not good enough) and on what information JL & IR had been putting out in the public domain. My view is that JL is a complete sham and an outright lier! His only mitigation is the fact that he is also a complete incompetent. The board, as the guardians, of the company are also culpable for not getting rid of JL long ago. If you read through some of the statements and projection JL has made its debatable as to whether he is talking about CPI or another company.
So for me the only thing to do is wait and see what happens - at least AH seems to have a plan and is being proactive and I wish him well on his mission.
Boo Hoo -"the staff and Unions are angy" - They should consider the fact that they are fortunate to have jobs. What about the shareholders - they have serious reason to be angry after all the rubbish the likes of JL and co have been feeding them for the last few years.
AH is dangling a carrot - in other words you perform, improve performance, deliver on the job you were employed to do and then, once conditions are right and the turn round is on track, you may get some reward. There has been too much fat in CPI, JL's approach was to sell off the profitable parts and streamline the company. The net effect has been to reduce revenue overall, but the bit he missed was the strategic approach to efficiencies and internal cost cutting (except the token gesture in anounced in December). It looks like AH is taking a far more strategic and robus approach, which has to be welcome. It sends a good message to the market, and is decisive and clear.
As for a brain drain - I think TerryM1 summed this up best in his recent post. Get rid of those who have been sitting on their complacent backside, picking up a wage and get into the world of hard work and proper contribution. Too much entitlement and taken for granted attitudes around if you ask me!
Looks like the days of the tea and chat club, led by LJ are well and truly over. AH looks to be setting his stall out and making CPI staff aware of realities of working for an unprofitable company! Lets see if all his social media supporters endorse his approach, rather than trying to crawling up his backside, and tell him how inspirational he is! Lol I work for a large national charity and the whiff of a payrise is pure fantasy, we live in the real world!