Member Info for Sunlit

Really do you work for Capita? Have you any idea how much it’s cost Capita to fix the Civil Service Pension Scheme?

Or perhaps I’m perfectly capable of thinking for myself. It would be unfair to label you as incapable of thought, but you’ve certainly drunk the AH Kool‑Aid. Are you genuinely that easily misled, or just gullible?

The second paragraph shows that Capita hasn’t learned from previous mistakes. In an attempt to close some business in 2025 they have rolled the dice and it’s backfired. The reason Capita is the mess that it’s still in is because the SLT rolled the dice too many times and lost. Too many unprofitable contracts to many unknowns and only finding out issues when it’s too late. Capita is not a new kid on the block. Selling CE for £1 is not the end of Capita’s woes. Ask yourself this question over the 4 years Capita has announced it needed to cut costs £160mil then another £20mil the another £50mil and finally another £40mil why didn’t the SLT simply announce it needed to cut costs by £270mil over 5 years?

One renewal doesn’t mean it’s on the up pragmatism and realism win out over the AI BS which no one knows the true cost yet.

Facts

Capita has been shedding divisions for years to:

• Reduce complexity

• Focus on public sector and pensions

• Improve free cash flow

A company repeatedly simplifying is often one that expanded too broadly and is now retrenching to survive. I hope Capita does survive but I think the current SLT will struggle. Selling a major part of your business for a £1 is not a good news story.

Correction FCF 2026 should have been £50mil didn’t happen so now you’re prepared to accept £20-£40mil. Funny thing I am sure you posted with great delight how useless you thought Jon Lewis was. He achieved a share price of 34p March 2023.

AH has turned around two companies SDL PLC 2016-2020 and Acision 2013-2015 both companies were sold. But he’s no Rupert Soames. It took 10 years to turnaround Serco. You have to ask yourself why AH hasn’t divested CR.

What’s killing this business is loss making contracts every time there’s a delivery issue there is insufficient margin in the deal thus it becomes loss making. You can use all the AI the world it will not make the contract. I am invested in Capita but I don’t wear rose tinted specs.

Really

Why don’t you ask why ChatGPT what it means to have an unqualified pipeline?

Any decent sales director will give you the answer Capita pipeline assumption is they will win 100% of the pipeline so they don’t have a proper qualified pipeline

The problem with the Synergy contract is that it’s a 7 plus 1+1+1 if they exit after the 7years will Contract be profitable. The problem with the AI strategy is no one knows what the cost will be in 3years let alone 7/10 years Amazon is undertaking a massive expansion in Artificial Intelligence (AI) for 2026, with plans for up to $200 billion in capital expenditures—largely driven by AI, data centres, and custom chip development. Someone’s gotta pay for that investment.

The AI strategy is floored Microsoft have 450 million commercially paid seats of O365 the monthly usage of these seats of O365 is 350 million yet the take up of commercially paid for seats is 15million which is 3.3% of the base. The expectation is AI will reduce costs and make Capita will make money. The trouble is AI resources intensive which requires continuous investment just look at what the mag 7 are planning on investing in infrastructure in 2026 and clearly they will need to make a return. Time will tell if AI can deliver on its promises.

A £16,000,000,000 unweighted pipeline is meaningless. When AH mentions unweighted/unqualified pipeline he’s telling you he expects to win 100% of deals in the pipeline essentially treating investors with contempt.

Can you explain how this wasn’t Capita’s fault?

Given last year’s massive culling of staff Capita dedicating 30% of staff to fix the issue what other projects/customers are suffering ?

Clearly the new gods are not as clever as you think they are.

The only way you can know for sure if the underlying business has changed is if you work for Capita. Do you know for a fact they are making money on all their contracts. As for sales pipeline you’ve clearly never worked in sales. A £16billion unweighted sales pipeline is meaningless all it means is AH believes 100% of his pipeline will land unweighted = unqualified = wishful thinking . I never had a sale director say what’s your unweighted pipeline most sales directors want to know what’s going to land in Q1 the 75% plus. With January nearly behind us focus should be on what’s landing in February so these deals should be close to closing now. I suspect they will announce more aggressive cutting of staff and no to minimal growth by end of Q2. Customers extending contracts is not growth. Remember AH growth ambition is low single digit margin. Capita has yet to show any proof their AI strategy is working and they are benefiting from lower costs.

And just for clarity an unweighted sales pipeline is the total £££ value of all potential deals in your sales funnel, regardless of their stage or likelihood of closing, treating every opportunity as if it has a 100% chance of success.

£16 billion unweighted pipeline is meaningless. The only pipeline that matters is qualified pipeline of at least 85%. Try and get a loan based on an unweighted/unqualified pipeline.

Whilst this is welcomed news contract extensions don’t grow the business . Undoubtedly there will be consolidation in the AI market and I have no doubts some a vendors will fail. Mark Zuckerburg was heavily invested in VR now he’s pivoting to AI. All that glitters is not gold. BTW someone on here was raving about new business Q3/Q4 contract wins what happened no long left now

Just for clarity EMEA wasn’t just fine as you claim. Customers connected to Frankfurt experienced issues

Really so in your opinion who specifically do you think should be punished the employees who raised issues or the managers who failed to act or the board for failing to provide investment? The board has gone so who do you think should fall on their sword? Remember capita was run like a local authority decision by committee

Really what’s that saying “tomorrow never comes” AH boasts he has a £4.8 billion pipeline, is that over 5 years? is that 95% qualified? I doubt the sales pipeline has 10 95% qualified between now and the end of the 2025. Single digit margin is not very ambitious no wonder the CPI is still losing money.

CPI hasn’t paid a dividend since end of Jan 2018 with no prospects of a dividend in the next 2 years.

Now let’s look at pinning all your hopes on AI in the next 5 years I predict the costs of AI to exponentially increase with the cost of energy and water scarcity in the U.K. being a major contributor. Equinix are already seeing a shift to mainland Europe.

The only plan CPI has is making UK staff redundant it’s sold all the silver.

The manage to value businesses IT & Networks and IT managed services is in a constant state of flip flop.