Member Info for Sunlit

Gotta wonder why nobody has made a move to buy Capita. If it’s such sure thing?

Perhaps they are waiting to buy high, perhaps it’s not worth the due diligence investment, perhaps I should ask AI why nobody has tried to purchase Capita.

Just so you know the owner of Route 101 sold his business to (CCT)Capita many years ago back in 2011 .

Based on the H1 update, achieved to date £185mil of savings against £250mil of savings so to hit AH FCF target by the end of 2025 so that’s £65mil of in year savings so that’s £10.8mil per month. If we assume the FCF target will be met by cutting people that suggests a minimum of another 900 redundancies before the end of 2025. Only time will tell. I understand that growing your way out of trouble has never been on the table imagine. Ask yourself why a Bristol based company much smaller than CPI can win a bid for a 40,000 seat contact centre https://contact-centres.com/route-101-awarded-contact-centre-contract-by-dwp/

What/when was the last time CE won a net new logo? Contract extension are existing business that is your to lose. The current strategy of cutting your way to greatness will only take you so far, ultimately FCF and new profitable business is the only cure.

AH has stated he has an unweighted pipeline of £11.1b. Therefore, the pipeline has been scrutinised and fully qualified.

Can’t imagine AH would be impressed by you calling his contact centre staff idiots considering that’s one of key areas of growth. Until AH took the reins Capita paid its contact centre staff the real living wage. IMO and based on the recent sale of a loss making mortgage book of business I suspect a lot more of this activity in H1.

If AH is as astute as you say he would already have an exit strategy.

Consistent message from SLT is cost cutting. Very little in the way of growth. AH can do all the cost cutting right shoring he likes without a quality qualified pipeline for growth the share price will remain low 20p. The only time the dial has moved in recent times is when job cuts are announced.

What really needs to change for Capita to turn the corner is the culture of business which is failure by design.

You seem to have a lot of faith in AH what is that based on?

It seems AH is regarded as some sort of messiah. AH is not announcing to the market his growth strategy until June 24 that’s 6 months of growth and pipe line building gone. AH vision to use partners has both benefits and drawbacks. When Capita started out it was heavily dependent on partners which worked fine for a while. However, using partners means margin on margin and limited control. The lead company is always held accountable by the customer when things go wrong

When you say “they” all deserve pay cuts can you elaborate on “they” ?

Is that SMT on say £0.5million p.a. or the call centre agents earning sub £20,000 p.a.