Member Info for sharehead

Just topped up too

30p looking good- but I’m not selling any, not even when we go over £1 in time

Btw in 2017 the 11.1p was only an interim dividend of 11.1p . The final dividend was 22.5p so overall the dividend for the year was 33.6p

I agree the dividend will start around 2p but if it grows to even a third of the 2017 33.6p that’s around 11 to 12p a share. Taking a 5 year plus view 150,000 shares now could pay an £18k a year income as well as the capital increase in sp value. This may or may not happen but I don’t think it’s an unreasonable scenario over that time frame

Yes re-entry to the FTSE250 and all the IIs tracking have to BUY lots of shares again- this should be a big sp driver in the future

Whether or not they get back to the 2017 level of dividends of 33.6p in terms of a pension income investment, you could buy say 150,000 shares now, which apart from at least doubling in value, if you got a 12p a year dividend in future that’s an income of £18k per year - imo that’s a realistic target

In 2017 there was an interim dividend of 11.1p and a final dividend of 22.5p so you overall 33.6p

The general view on looking forward:

Contracts have inflation clauses that allow inflation to be passed on

In a recession gov departments tend to use service providers just as much if not more to streamline costs - if that’s the case should pick up more contracts

I agree with the comments below. I see this as a great long term hold. Initially target is 50p, then £1. In a few years I’d be looking for yearly dividends comparable with today’s share price. So for me this is still just the start of the journey here

https://www.proactiveinvestors.co.uk/companies/amp/news/976372

I think this is why we break 50p this time around

First target 50p - then this was trading £1.20
and above back in early 2020 - since then there’s been no dilution, debt reduced and can be eliminated next year and profit and revenues growing- with talk also of starting dividend restoration

Yes I’d also noted that the sp was well over £1 and rising in Jan 20 with no dilution since and the company now in better shape than then

50p first target still over a 100% rise from here !

Contracts inflation proofed, government contracts for cash flow visibility, ability to clear debts when disposals complete, revenues and profits recovering, talk of restarting dividends…. Still think £1.12 is a reasonable target albeit first need to test and pass 50p

Agree looking like a break out from constrained trading range

Nice !

It also highlighted recently that 2rds of contracts have inflation clauses included which allows them to pass on costs incurred due to higher inflation and therefore protecting margins- all looking very positive

So the message they can clear ALL debt when they complete disposals and are looking to restart dividends tells me the turnaround is rapidly gaining momentum.

I’d agree with the overhang holding the sp at depressed levels currently- I also agree, as I’ve witnessed many times, that once the overhang clears the sp usually bounces strongly to where it was before- so in this case circa 50p ish

This bounce could happen any time and if you’re not holding you risk missing it

Just to agree with points below on the turnaround, successful disposals, debt reduction and the unique position Capita have for future Government outsourcing contracts. I too think 42p is only an initial target and will not be selling any shares at that time. For me the potential is much higher and better still I see the potential to pick up lots of cheap shares now that could pay for themselves over and over again as dividends eventually return and increase. As such I think this is actually a forever hold for me.