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I doubt that

Yes buying opportunities getting bought into - not surprised really

Looking forward to this testing 30p and hopefully leaving the 20p’s behind for good

Hi No Fear - yes, even though they tipped Serco, the reasons - outsourcing boom, business transformation, inflation can be passed on etc equally apply to Capita and we are already more undervalued to start with

Also the main point of the tip was they see an outsourcing boom coming

Well it all goes in cycles- todays out of favour companies are tomorrows darlings.

Capita has everything in place to thrive and that will get noticed and as the sp re rate continues it will pick up momentum imo.

I see that the Times has tipped Serco as a BUY today.

I would obviously prefer they highlight how under valued Capita is, but a lot of the reasoning behind the tip is that outsourcing companies like Capita and Serco have been out of favour but are now re-attracting interest as they turn around their businesses around and show that they can also flourish in inflationary and recession type environments.

All companies in the sector showing signs of increasing strength as well as catching the eye of investors and IIs (as we have seen loading up here already) is good for us all imo - although I see a much stronger investment opportunity here at Capita myself

Quotes from the Times tip below:

Now recession, we’re told, is looming — and straitened state coffers tend to trigger an outsourcing boom.

Yet the market does not seem to have priced this in.

The company, which, as ebullient chief executive Rupert Soames puts it, is “the pointy end of the government’s stick”, may be worth a second look.

And yet the stock’s valuation is soft, with shares changing hands at just ten times earnings for this year.

Yes, Serco will face the same chilly winds as the rest of corporate Britain, including inflation and staff shortages; the outsourcer has already faced a strike over pay by hospital workers this year. But it will be able to pass on a chunk of those rising costs on to customers.

The company looks set to flourish even as Britain’s economy wilts.

Buy.

* to hoover

https://www.bloomberg.com/news/articles/2022-05-14/uae-s-etisalat-buys-9-8-stake-in-vodafone-for-4-4-billion

So it seems big demand for Value companies at present. Sp at VOD dragged down to fill massive order at what is now above market price.

That’s why I’m not selling any shares here for way below fair market price of 50 to 60p to enable someone else but hoover them up cheaply and then they reap all the rewards

So it’s pulled back a bit of the pullback, hopefully we see new recent high next week. Be nice to leave the 20’s behind.

With regards to revenue growth, apart from the £9 billion pipeline, their contact renewal rate of 93% in 21 is pretty impressive

And nice rise today - still another 100% and a bit more to go to get to initial targets in the 50 to 60p range.

Exactly - atb

Morning Dan

I would agree with Ian’s post earlier. Their are IIs looking to load up here for what I believe is the initial inevitable rise to 50 to 60p (I say initial because I firmly believe this will be back over £1 - it was £1.65 in Jan 2020 and we’re in much better shape now). They are, I would agree and as Ian says, looking for weak hands so they can hoover up shares cheaply now because they know they are on a ticking clock before this fully re-rates. Well they are not getting my shares, that’s for sure!

Capita have already over achieved on their £700m disposals target as well, worth remembering that too - interesting though which posters try hard to look for negatives in what has been a highly effective disposals process. Same one who took great offence to me high lighting all the great achievements taking place here. Funny that.

In terms of statements about reducing debt have you not read the Full Year Report. They note numerous times that debt will be further materially reduced in the next year, in fact they expect to be debt free after disposals.

They have also made huge cost savings

The company is now in a very healthy position

During 2021, we took action to reduce operating and administrative costs by a further £123m and, over the transformation, the total amount of cost savings has been more than £425m. The main areas have been in operational excellence – “doing things better, doing things once” – as well as in more efficient management structures, property and Group IT and procurement savings. There is more to come as we focus on the benefits of standardisation and efficiency in each division and in a lean Group overhead structure.

We continued to strengthen the balance sheet and successfully completed a number of key disposals exceeding our target of £700m of proceeds which has enabled us to address our funding commitments in 2021 and 2022. We will continue to strengthen the balance sheet with further disposals, as well as improving the pension fund position.

The transformation is now finished. We have a simpler and more focused structure in place, strong positions in growing markets and a structurally lower cost base. We are continuing to strengthen the balance sheet. The platform is in place to grow revenue, increase margins and cash conversion and to drive positive free cash flow.

I wouldn’t say it’s had no impact. Capita is up 11% in a month and against a background of falling share prices. It’s broken away from lows of 20p and pulled back from 22p earlier back above 23p. Obviously we’d all love it to jump to 50p tomorrow but we’re on the journey back up to 50 to 60p imo. I remain very positive in the turnaround and the direction of the company.

Good points AM - it makes sense for more IIs to add at these prices. Low hanging fruit for easy profit imo

Huge vote of confidence & no doubt they carried out some in depth due diligence of Capita and opportunities, risks etc and following all that significantly increased their stake.