focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
But you can double margin in many ways & guidance was that we are ON TRACK
- reduce headcount - use of AI and collaboration with Microsoft means this can and infact is happening
- winning contracts with improved margins from previously- this has been confirmed
- increased revenues- we have been winning contracts and retaining clients
- we are increasing productivity and working efficiently
- no more top up pension payments from 2025 as pension fund is back in credit
- no more one off costs such as with disposals as they are complete
Etc…
So as already highlighted Money Week have picked Capita as one of their TOP tips for 2024 - they believe we can multi bag from these ridiculously low prices - with the potential to more than triple
“If the company can earn a 5.5% margin on its revenue base and the company is more appropriately valued at 11x operating profit, then the shares could more than TREBLE from here.”
Guidance was that we are ON TRACK to DOUBLE margin to around that 5.5%
https://moneyweek.com/investments/top-stocks-for-the-new-year
So they consider we should be on track to reach a share price of around 70p
Imo
As per Hope1815 there are commentators that say Feb / March for earliest first rate cut. More consensus around May - but will the BoE want to cut early to get on the front foot for once - who knows
I think CPI will do well regardless of when rate cuts come - I was just commenting on another post
Imo this clearly has the potential to multi bag which is a good enough reason to BUY on its own
But BUYing at current prices also locks in the long term potential for good dividends at a very low current outlay
So win / win
Imo
“It is one of the biggest contractors for the Government, managing the payment of TV licenses and recruitment for the British army. It still generates revenues of close to £3 billion at a margin that has significant upside, following a sizable restructuring of the business over the years by outgoing chief executive Jonathan Lewis.”
He highlights that revenues are now growing again, adding “If the company can earn a 5.5% margin on its revenue base and the company is more appropriately valued at 11x operating profit, then the shares could more than TREBLE from here.”
New CEO taking over soon with great track record to take us forward
Signalling switch from turnaround to growth
Disposals complete
New revenues growing while renewals continue
Margin on track to grow and double
Collaboration with Microsoft in place
Agree imo 40p’s could return soon
Great opportunity imo
Guess some are desperate to get in
Shame they keep missing rises whilst hoping for fractions of pennies drop
When we’re back in the 30p’s they’ll be kicking themselves for missing out on current ridiculously cheap prices
Imo