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The share BUY back is an item on the agenda of the AGM for approval- so not nonsense

Well that fact restarting dividends and share BUY backs are now on the agenda shows what a different place the company is now in. The sp does not reflect this turnaround yet - but that’s why this is such a compelling opportunity imo

Great opportunity here for a company that has a depressed sp, could be debt free next year, has inflation clauses built into contracts, looking at restarting dividends and has set aside permission to BUY back 10% of its shares. Looking for a move back towards 50p over the coming months. Not really seeing many other opportunities around as good as this one tbh. Gla.

Yep - still here and added this morning

3rd Jan 2020 it was £1.65 ! I’d take that !

Just looking back over some of the “back up” moves here. On 6th Nov 20 the sp was 24p, by 20th Nov it was 43p - wow blink and you’ve missed the opportunity

Even more interesting as they expect to generate spare cash this year and be debt free next year. They already mentioned restarting dividends but it also looks like they are considering a share BUY back scheme as well. Interesting times.

Did anyone notice section 18 in the AGM agenda is permission to undertake a share BUY back scheme of upto 168,427,352 shares - now that would be interesting

18. THAT the Company be and is hereby generally and unconditionally authorised for the purposes of Section 701 of the Companies
Act 2006 to make market purchases (within the meaning of Section 693 of the Companies Act 2006) of ordinary shares of the Company provided that:
(a) the maximum aggregate number of ordinary shares that may be acquired under this authority is 168,427,352;

Well I think just readjusting to reflect the current and improving company position will take care of that. It’s just sit, wait, eat some popcorn whilst reading posts on here and wait for the sp / p/e to do its thing. Atb.

AM I will try to explain why I think the SP could bounce back to the 50p to 60p range in a few months, as this seems to have become a point of friction between us.

Your view is the sp is at the correct level and as such it’s ridiculous to come along and say the sp will rise 120% in a few months - fair enough I get that.

My point of view however looks at the current position very differently. The sp dropped from 47.5p on the 7th Dec to 20.85p on the 8th March. So it did the reverse of what I’m now expecting in 3 months.

My point of view is the sell of was IIs that track the FTSE250 readjusting their portfolios to suit. This put a huge temporary downward pressure on the sp. Which is why I keep saying the sp is depressed.

I’ve seen this scenario play out many times and when the selling dries up the sp quickly bounces back to its more normal level. With a current p/e of something like 1.7 I think we can safely assume that 23p isn’t this shares normal level.

All the brokers forecasting the sp don’t think current sp is the normal level either- their average is 57.5p and Barclay’s have a 60p forecast with an overweight rating. So basically fill your boots time in their opinion

Yes the sp rose last week and then retraced

Partly I think many were so surprised by the rise, they took profits, partly maybe the IIs selling the FTSE trackers are not quite done, partly the wider market didn’t do very well.

I don’t trade because I can’t seem to time buys and sells well enough to make money.

Instead I look for what I believe are undervalued companies that have the potential for big share price rises - like Capita - imo

Atb

Enjoy !

AA - I’m definitely not trying to get out - I’ve posted here a few times that this is my forever share - and my average is below the current sp fyi.

I’m here because I see massive potential- the sp has been battered by II selling following exit from FTSE250 and as I’ve seen many times before once that selling is over sp bounces to where it should otherwise be.

Which is 50p to 60p range imo

I’m not interested in pennies up or down- I’m looking at the big picture here

This is what it actually says:

Authority to allot shares
15. THAT, in place of any existing authority conferred upon them for the purpose of Section 551 of the Companies Act 2006, the Directors be generally and unconditionally authorised pursuant to and in accordance with Section 551 of the Companies Act 2006 to exercise all the powers of the Company to allot shares in the Company and to make offers or agreements to allot shares or
grant rights to subscribe for or to convert any security into such shares (‘Allotment Rights’) up to an aggregate nominal amount of £11,602,773, provided that this authority shall (unless otherwise revoked or renewed), expire at the close of business on 30 June 2023 or, if earlier, on the conclusion of the Company’s next Annual General Meeting, save that the Company may make any offer or agreement before such expiry which would or might require shares to be allotted or Allotment Rights to be granted after such expiry and the Directors may allot shares or grant Allotment Rights under any such offer or agreement as if the authority had not expired.
All authorities vested in the Directors on the date of the notice of this meeting to allot shares or to grant Allotment Rights that remain unexercised at the commencement of this meeting are revoked, without prejudice to any allotment of the securities pursuant thereto.

£11,602,773 (max) / £389,000,000 mcap = 2.9% by my calculations - and it says there is no intention to use this anyway - just a precaution

Actually of the Share price forecast of the 6 analysts offering 12 month price targets for Capita PLC the median target is 57.50 - so above 50p

Barclay’s target for example is 60p

So luckily for us, Capita’s Contracting model has inbuilt inflation protection

66% of client contracts include inflation linked escalators

22% Contract - indexation
are fixed price, with indexation assumptions built into the contract terms

12% of revenues are transactional so naturally hedged by updated pricing

Another great reason to invest here

Another reason that Barclay’s have overweight rating in place

Well yes I agree, the facts are not new news.

Turnaround complete, debt can be cleared by next year after disposals, £9 billion pipeline, 93% contract renewals rate in 21, revenues growing again, return to profits etc etc

Just need the share price to start to reflect all that news now.

Barclay’s overweight rating and 60p target feels about right

Atb

I’m taking a 6 month view - I can’t say what it will or won’t be next week- but imo it will be close to 50p in the next few months

Another thing I was impressed with was that between 2018 - 2021 their Operational excellence Structural efficiency strategy delivered £425m
of cumulative savings delivered so far

That’s the kind of attention to detail that defines companies that have got their sh*t together- I like that

Hi yes, I looked at that website. It’s quite good. I was just noting that they have a 9.4 billion pipeline for this year on top of any renewals. I deal with major contracts myself so I know they don’t pop up all the time so we will get them popping up over the course of the year, but not necessarily next week for example. Thanks for posting your spreadsheet the other day, I had a good look through it, very informative. Atb.