Member Info for sharehead

Adjusted profit before tax1 for the half year increased by £35.9m to £37.0m (H1 2021: £1.1m).

AM - anyone who listened to you at 20p, 22p, 24p etc missed out on a rise

But I don’t believe anyone makes investment decisions based on the back and forth of differing opinions on this forum

Maybe it plays into your ego that anyone having a point of view here moves the sp in any particular direction

Personally I think that’s totally ridiculous

This is a place to debate different views

That’s why as much as I disagree with you I have no issues with your opinions- I just don’t share them is all

But your perfectly entitled to post them and I may disagree with you but I actually enjoy reading some of your posts

Do you seriously think anything posted on here impacts the sp ?

Maybe you have to high an opinion of your abilities

I certainly don’t think that

The sp rose because it was ridiculously low

It dropped on Friday because imo it highlighted issues that have effected the company in the past

I expect it to rerate because I feel we are transitioning away from those issues now

But happy to see who is right

Atb

AM you have been posting to sell or not BUY since 20p and it did go to 30p

They are facts

So anyone who listened to you back then missed out on a 50% rise

Own it

AM - just to comment if I can, you have been telling people to sell or not to BUY since 20p

I accept it dropped on Friday

However it did go slightly over 30p prior to that

So anyone who listened to you at 20p would have missed out on a 50% rise to 30p

Just saying

In terms of going forward- I’m obviously still very positive as I think most of the issues being raised are to some degree in the past

But that’s why it’s always important to do your own research

Anyway that’s all I wanted to say

Atb

We all know the issues we are transitioning away from

Where the sp is going depends on whether you see we are making progress or not

I think we are

So as this is priced to fail imo

And in my opinion that’s now very unlikely

I can only see that the sp will rerate to reflect the progress being made

I’m patient - because I think the potential rewards here are worth it

But, as I’ve said - it’s all about personal choice based on forward looking information

Gla

Markets are ultimately forward looking

So looking forward I see an improving outlook here

So I still - on that basis - expect the sp to rerate from these low prices

But let’s see

I’m just looking at the facts

The facts as I see them is we are transitioning from a difficult and turbulent period- the results show that - the headlines scream that

But there was nothing in there I saw that suggested these issues are not slowly falling away

That’s my point

I did not get my 30p plus….

Yet :)

Adjusted profit before tax1 for the half year increased by £35.9m to £37.0m (H1 2021: £1.1m).

In short our previous failings are baked into the sp

Our future opportunities are not

So if you believe we are on track

That we are heading into improving revenues and profits

That debt will be substantially reduced

That we will continue to transition as a business

Then it’s all to play for

Well I guess those headlines tell part of the story - the rear view part imo

But we know we are transitioning from a difficult period - hence the sp is where it is and still reflects all these issues- that’s what makes this an interesting opportunity- it’s still priced to fail

My interest is not where we were - but where we are headed

While we are priced to fail - I believe the update shows we are making real progress

That these issues will start to disappear in the rear view mirror based on growing underlying revenues and profits which are also weighted to H2

That next year debt should be substantially reduced

That dividends and share BUY backs can come into play once debt is reduced

That we are looking to enter high value AI driven contracts

If the sp already took account of all of these - my interest would be less

I’m invested with all these factors in play but not reflected in the sp

And I am patient

We’ll have to wait and see but I didn’t read anything that suggested that we are not on track to make headway into the above opportunities

Atb & Gla

Free cash flow before business exits1 improved by £71.9m to £12.7m (H1 2021: outflow £59.2m) reflecting an improvement in underlying cash generation and the step down in pension deficit contributions.

Net debt at 30 June 2022 was £169.4m lower at £710.4m (31 December 2021: £879.8m) as a result of the improving free cash flow and the receipt of disposal proceeds. We have repaid £82m of debt so far this year, with approximately £140m due to be paid in the second half. Pre-IFRS 16 net financial debt1 was £289.3m (31 December 2021: £431.4m).

Financial outcome

Adjusted revenue1 grew by 0.6% year on year at £1,480.1m (H1 2021: £1,471.9m), Public Service grew by 0.8% as the division benefited from a full half year of revenue from the Royal Navy training contract and the Job Entry Targeted Support (JETS) contract in Scotland, offsetting the absence of Covid contracts delivered last year and some limited local government contract losses. Revenue in Experience stabilised as the impact from historic lost contracts rolled off and there was a positive benefit from the Trade Republic contract won in 2021 and the first month of the ScottishPower contract. We also saw strong revenue growth in the Portfolio division as Covid-affected businesses recovered well, in particular the Agiito travel business and Enforcement, despite some impact from omicron-constraints in the first half.

Adjusted profit before tax1 for the half year increased by £35.9m to £37.0m (H1 2021: £1.1m). This has been delivered by the recovery of the Portfolio division, the timing of milestones on some of our larger contracts in the core divisions, the cessation of major restructuring spend and by the benefit at the Group level of overhead cost savings, offsetting the accrual for the commitment to repay £4.9m of 2021 furlough-related income as announced in May.

Jon Lewis, Chief Executive Officer, said:

"I am pleased with the progress we have continued to make across Capita so far this year.

“Our performance has been in line with our expectations. We have increased adjusted revenue, profit and free cash flow; and further reduced debt and strengthened the balance sheet.

“Operationally, we have remained strong, continuing to deliver successfully for our many clients in both the public and private sectors.

“As our reputation for delivery and digital transformation services increases, we have secured a series of important contract wins and renewals, as well as growing the amount of work won with new clients.

“We are well positioned for growth in the second half of the year and beyond; and our full-year commitments remain on track.

All in all - what you have written was expected

The fact is they are improving and growing into a more focused company imo

Capita is a growing company that’s what the results show imo - I’m still satisfied every thing is on track

Share BUY backs got the most votes at the AGM fyi

Once disposals greatly reduces debt next year and we’re generating free cash then dividends and share BUY backs should definitely be on the agenda

AM - if you were so confident here, I guess you would not be posting so much as you are

So I guess you’re actually a bit concerned

I’m not thinking anything has changed really

Underlying profits up

Profits expected to grow

Underlying revenues up

Revenues expected to grow

I mean, all sounds to me that we are on track

Anyway, things to do so I’ll leave you alone with your clear anxieties

Atb

It sure will be, yes