Member Info for Simpiles

Mitie

Oh you don’t want Mitie to buy Capita. The mostly deal in cleaning toilets. My experience in working with Mitie was a complete disaster. An organisation run by the muppets!

Terry

Wall st is as effective as Birmingham Bin men.

Total bunch of Scottish athletes!

What ever they recommend do the complete opposite!

Your opinion may differ of course!

Hexam

So ends the mystery. I have already complained about this to IR. It’s hard to work on the numbers when they are incorrect .

Based on this we currently stand at 34k. It would also appear that my numbers at 38k were also correct. This has been going on for some time. Could this have been caused by redundancies, ie no longer working but on the books?

This will reduce NI costs for UK staff!

Time to raise a question for the AGM?

Hexam

Thats about right I was 10% out.

Looks like final numbers for 2025 should be around 32k.

Year 24 staffing numbers were around 42k I know because I pushed iR on this. Staffing numbers reduced due to loss of SWAN plus closure of MPLS service (Wind down)

Hexam

Yes you are correct. Capita owned Updata selling MPLS services. SWAN was part of this. Capita have stopped selling Network services and have merged the C+ and Updata networks into a single Network. They are running down the Network services. Hence why the staffing numbers have dropped. This means going forward the overheads are reduced. The revenue had already been lost so going forward we will move faster to FCF. It would appear that AH has stepped this up reducing costs faster!

Hexam

When a new project starts there are deployment costs Startup and wind down when project ends. The Swan contract was not renewed. This involved permanent staff to run project and project staff ( Used when required) These are costed in the Project. This means that you may have x permanent staff and Y project staff (Change management , startup, change management and Wind down)

As Capita is getting smaller it needs less staff.

When the SWAN project was lost you had closedown costs

Hexam

This is not a Capita Spreadsheet I have worked for other companies. It is project based with tabs for job functions. It was used to price staffing costs for projects. HR will Always have their own models. However like you as a rule of thumb the costs are generally predictable. When staff take leave, cover needs to be costed this is the difference between staff and projects. This is the difference on project based costings, and permanent staff!

Craig

Pension is 5 %

There are other overheads as well. However yours is a decent summary. I have a complex spreadsheet that includes things such as Maternity pay etc! Roughly equates to just below 50%

Hexam

Further to my last message The cost to employ staff is around 1.5 times salary.

I reckon tge Savings are somewhere around 200-300 £M per year!

Wed

As a lot of the number reduction is engineering and sales I would say average salary is a lot higher. Dont know the ratio of One ostaff but there must be al load of dev staff.

Remember HR numbers will also reduce!

I would say average salary closer to 40k

Hexam

The 38k was my number Capita seem to stall at

42k for a long time despite the fact that I queried IR on this. This is the first update since then. I noticed that a lot of the Swan staff have left recently. This will be a reduction on Uk and India numbers. This will also include one numbers as well so a huge reduction in UK headcount!

Theoldtrader1

Well written and researched piece. I have been saying for some time the headcount number was below 38k. The 34k number is 10% lower than that where did this new data come from. I agree with your other statements. I know that there are other contracts on the list such as PCSE up for renewal and migration to the cloud!

This is a big year for Capita cant understand why the price is so low. Market manipulation has to stop for this share to move forward.

AH Share Options

Yes I agree 2026 to 2027 was my target

However something is going to happen this year Dividends?

Not so sure about DT If I were him I would not visit Dallas!

Can’t see him serving a full term

Trisor

I do believe a. buy out is on the cards but what CEO is going to sellout on the cheap. Based on current pricing I reckon the share price should be around £1 or somewhere between £10-£15 after the consolidation. I Really don't want a take/over as I believe their is much more to achieve!

Aim

Spot on its likely that the UK will start to deploy automation to improve services as well as reducing headcount through wastage! More contracts for Capita!

Capita's contracts are mostly in Sterling and are long term.

Vodafones debts are high plus they are B to C as well as B to B. They have complex problems in multiple countries. Hugh investment is required in UK and Germany! The list goes on and its not good!

Terry

You are right on most things except off shoring!

Most of the redundancies took place in the uk. Capita currently offshores in the following areas

1. India

2. South Africa

3. Poland.

4. Bulgaria

There are a few other location, I cant remember everything.

Capita is moving away from body shopping and using automation instead. The intention is to automate as much as possible and not increase the body count in other locations.

In automation with the UK Gov its highly likely that contact centre agents will remain as civil servants with Capita managing the service. This is much more profitable for Capita.

You need to think outside of the box.

Lordy

Its not unreasonable to compare other shares and what is happening in the market place!

Trying tk understand the current market behaviour is in everybofies interest

Aim

That is a possibility. Voda are deeply invested in Germany where a lot of money needs to be spent. Italy and Spain have been sold off, Voda spent big in both these countries. The whole Dynamics is falling apart.

The IoT platform is the only jewel in the crown. Other countries such as Ireland and SA are doing good but the Voda network is starting to unwind!

This is a long Journey with-a lot of cost cutting!

Aim

Really think that Voda will be the replacement football for market traders! Thats when Capita consolidates at around £3 to £4. If Voda slips below £0.50 then they are done for as it will be difficult to pay a Divi. a long road and journey ahead!

Adam

Agree Voda has a long journey ahead, current interest rates will cripple Vodafone. They had the opportunity years ago but kept debt high to avoid takeover. This is very likely to happen along with the breakup of the Voda empire. The masts are almost completely sold off. The current network integration is a millstone in increased costs.

To change Voda you need a major gut out of senior management and a severe reduction in operational costs.

Once the darling of the city now a pure basket case!

I wish it was different. Sold out on Voda over 6 -7 years ago just got out in time when the price dropped below £2