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Shares go UP
They go down again
Then back UP
The hack allowed this to get dragged back down imo
But the affirmation that this has indeed turned a corner, is on a stable footing, is growing
That’s gonna be the game changer
Institutional Investors will be attracted by multi billion year revenues across reliable multi year contracts
Once it’s established beyond doubt that Capita has fully turned the corner with debt under control, revenues growing, margins growing then there will be a stampede to get in here
That time I believe will be soon
Well it’s easy to criticise- you’d know that better than anyone
Doesn’t make the criticism true
Mostly from people who don’t have any better answers but like the sound of their own self importance
Capita are doing a reliable job in difficult circumstances and are on long term contracts because they deliver
If the government wants to make army recruitment a priority and more attractive proposition then clearly that can only help
AM not really wanting to get into politics but it’s common knowledge the army has been shrinking because of spending cuts and that is causing frustrations given current world events. Should this trend be reversed via increased spending and offering incentives to attract more people in - that’s a political issue and decision.
Capita is just an easy target to fill some news columns in regards an issue that is really far more complex
There are contracts in place and being delivered- but the answers you pose take political will to change
As so eloquently put by DivanDaydream CPI is a focused business- the non core businesses have been sold off, debt massively reduced and focus on free cash flow, which could enable dividends in the future.
If you agree that is the path Capita is on as well as growing margins and increasing revenues then this clearly is an incredible opportunity
I’m sorry GoCPI (and btw I like your posts)
Kipper posted earlier:
“No matter tho as we Vultures have thick skins, and i can't even begin to tell you what our stomach's can digest.
Keep it coming bro......lol
16's incoming imv”
Sounds more like something straight from the AM handbook imo rather than pragmatic
Just my personal opinion I guess
Kippers sounds like he’s a very nervous investor imo
Would you top up at these levels- of course I would it’s a gift imo why wouldn’t you ?
So Kipper talks of fields as to why at 17p he would not BUY, but he would BUY at 16p and sell when it hits 25/26p which to be clear means he expects a rise here of over 50%
Then Trenners makes a post and Kipster is already questioning his strategy- I mean really ?
I mean I expect a rise here of over 100% and won’t be selling as long as progress is being made but that’s just me
From Pre-closing trading update to 30th Nov 2023:
Increased contract wins and execution of significant cost reduction programme
Positive operational performance across both divisions; adjusted revenue GROWTH of 2.1% in 11 months to 30 November 2023.
Contracts won with a Total Contract Value (TCV) of £2.89bn, increase of 47% from 2022; significant improvement in win rate for new contracts and expansions to 70%.
Execution of efficiency savings with planned overhead cost reductions of £60m on an annualised basis from Q1 2024.
Underpins target of more than doubling Group operating margin from 2.9% and delivering sustainable positive free cash flow over medium term.
Completion of Travel disposal, exchange of Fera with completion expected in early 2024 bringing to a close the Portfolio Division disposal programme.
Reduced future pension fund contributions under the recently agreed 2023 Triennial review; actuarial pension surplus as at end March 2023: £51m.
So we know that Capita has shown signs of improvement from where it was, there are green shoots. We reported revenue growth, plans for doubling margins , and are working on positive free cash flow. Dividends could be back in a couple of years or sooner.
We also know that Capita has contracts which have recurring revenues over the long-term, which provide stability and recurring revenue for years to come.
The company's restructuring and transformation efforts should lead to further improvements and we know AI and our collaboration with Microsoft are all focused on driving value and performance as well as delivering improved customer experience.
A significant portion of Capita's revenue comes from government contracts, which offer stability and predictability and is a difficult area to break into
The Share price does not imo reflect these factors currently so if you believe these changes will make progress then this could be a great opportunity
Some examples of contracts:
• £239 million contract: Capita was selected to administer the Civil Service Pension Scheme for the Cabinet Office starting in September 2025. This is a 10-year deal.
• £50 million contract: Capita won a contract with the City of London Police to deliver customer contact and victim engagement services for their new fraud reporting service. This is a 5-year contract with an option for a 2-year extension.
• €40 million contract (maximum): Capita signed a contract with Ireland's National Transport Authority to provide customer contact and information services for public transport users across the country. This is a 10-year contract.
• £20 million extension: Capita secured a 3-year extension with Westminster City Council to deliver council tax, revenues and benefits, and business rates customer management services.
Other previous Key wins also include renewals with Virgin Media O2 and the Recruiting Partnering Project alongside the British Army