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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
Summary:
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
Imo
Some examples of contracts:
Large 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.
Contract extensions:
• £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
Notice asking for help
Everyone please don’t BUY any shares and preferably sell so Kipper can stop having to come up with negatives to hit his recorded 16p BUY target
Thanks for supporting him / her
Kipper - you previously posted that your trying to get to a BUY in price to then BUY in sufficient quantities to reduce your average from 29p to 26p
Presumably you expected to get back to at least 26p (you did because you said you would sell at 26p - although that seems a strange strategy imo at least)
As such all your posts today are somewhat disingenuous imo
Seeing your 16p entry turning to dust must be frustrating