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Crowman
previously you stated that the lows here were, in your opinion, ‘going bust' prices, which you commented is not in prospect. So basically in that instance dirt cheap for a viable business & attractive to others ?
You went on to say that you would welcome a TO at anything north of 45p - but that no one so far has stepped up to the plate - so far being key here I guess
So now an enquiry has apparently been made about Serco, to the tune of £2.5 billion, even though these discussions have not yet gained any traction. Someone has stepped up to the plate there it seems. That maybe changes the mood around outsourcing.
Imo, this could now alert Institutional investors to the possibility of takeover attempts within the outsourcing sector, which many here at least believe is undervalued.
So maybe you could see the offer north of 45p that you would welcome apparently.
Me I want offers of over £1 😊
Atb
Clearly the collaboration between Capita and Microsoft is mutually beneficial. From my understanding Capita gains access to Microsoft's cutting-edge technology and expertise, while Microsoft benefits from Capita's deep understanding of the public and private sectors and gets real life feedback of its AI tools.
The collaboration between Capita and Microsoft i believe will continue to grow in the future given that both companies are committed to using technology to improve services for the people that rely on them and will use this experience to update and improve their products and services.
Summary
• Acceleration in financial performance
• Good growth momentum; minimal impact from cyber incident
• Consistently strong delivery of operational KPIs
• Improved employee engagement; reduced employee attrition
• Funding position transformed with RCF extension, USPP and disposal programme close to completion
• Foundations for sustainable long term growth further strengthened
H1 2023 Financial results
• Adjusted revenue¹ increased by 6% to £1,402.4m (H1 2022: £1,326.0m) with growth in underlying trading and
one-off benefits in Experience from Virgin Media O2 contract transition and a commercial settlement
• Adjusted profit before tax¹ increased by £8.4m to £33.1m (H1 2022: £24.7m)
• Reported loss before tax of £67.9m (H1 2022 profit: £0.1m) due to business exits, non-core Portfolio goodwill
impairment and costs associated with the Group's cyber incident
• Free cash outflow excluding business exits² * of £53.4m (H1 2022 outflow: £16.5m) reflecting increased working
capital, the cyber incident and increased digital investment
• Post-IFRS 16 net debt reduced by £165.8m to £544.6m (30 June 2022: £710.4m) driven by Portfolio disposal
programme and continued rationalisation of leased property estate
To replicate what we (Capita and Serco) have is incredibly difficult - especially given we manage multiple multi year contracts and even customers that left have returned as they don’t get the same service
Now with our Microsoft collaboration we can pull further ahead I believe
It (Capita) could have to reckon with the possibility of a takeover approach, Speakman suggested.
“It’s an interesting opportunity for another business to come and buy it out,” he said.
He said that potential buyers will likely wait until its full-year results are out before considering such a move, but if it (Capita) looks like a good deal and “ticks the boxes, I think that it could be in play”.
If margins can remain on a projectory to double there could be a big rerate in play with takeover offers a possibility
70p target I believe
Imo
Number of articles today stating Serco subject to a £2.5 billion bid - shows interest in outsourcing companies given massive growth potential
There was talk of potential bids for Capita this year given the growing revenues and potential to double margins
Anything above £1 ok, anything below £1 - forget it !