Member Info for TerryM1

Savage_KeyboardR

You still have not answered the big question.

WHY ARE YOU HERE.

Savage_KeyboardR

When a market becomes as to competitive as it was when CPI were chasing contracts at any price the best option is to batten down the hatches, cut costs, keep profits even if they are shrinking along with cashflow and wait for the results of your compactors mistakes to take effect. You are then in a perfect position to take advantage of your competitors misfortunes and not go down the same drain as them.

"This is woefully misguided tomfoolery - Do that and this business will fold, of that I assure you."

Worked great for Barclays when they took over Lehman brothers, made about £1bn and gave me well paid work for quite a few years.

Savage_KeyboardR

"There is of course another option... Bring in bucket loads of cash through growing sales revenues;"

You need to check the history of this company, this was the strategy that got CPI into this mess, lots of cash from low profit or no profit contracts which lead to losses. It was a result of an over competitive market with outsourcers chasing cashflow at any cost to increase turnover so justifying increase cash for BOD. Sometimes it is better to pull back let your competitors make mistakes and pick up the pieces when the time comes.

"Cashflow... it's critical to any business

No it is PROFITS, mush easier to win non profitable contracts, increase cashflow and loss money.

It's actually both."

I must disagree it is not cashflow it is FCF we need. No point in chasing contracts just to get cashflow, it must be profitable at a decent rate, contracts which have low profits now can turn into losses as costs increase just as they have recently with NI increases. You can't put food on table without profits.

Turnover is vanity profit is sanity.

Savage_KeyboardR

Let me help you, no matter how large the cash flow it cannot compensate for no profits.

Cash flow 100bn , costs 100bn, profits 0%, no money for dividends, expansion, no tax for HMRC to keep country running.

Cash flow 100m , costs 90m, profits 10% so company makes 10m money for dividends, expansion, tax for HMRC to keep country running.

You are getting confused between cash flow and FCF, so perhaps you will benefit from your explainer once you see the difference between cash flow and FCF which I have explained in simple terms in the hope you can understand.

"Cashflow... it's critical to any business "

No it is PROFITS, mush easier to win non profitable contracts, increase cashflow and loss money.

One I do agree with is AI is not a panacea for Capita's ills we need profit which will only come in the short term from cost cutting which is required NOW or would have been better yesterday and in the longer term from more profitable contracts. It is very easy to say AI will add to profitability but of course all the competitors are doing the same and if successful is more likely to see a reduction in contract values due to competition. AH must find ways to cut costs, unfortunately off shoring is looking like the best and perhaps the only solution to get away from the increase in tax costs and costs regulation in UK.

Thong, thing great mistyping.

Savage_KeyboardR

The only thong I want to know from you is why you are machine gun posting on a board for a company in which you don't own shares, have no intention of owning shares and are not shorting the company?

MrG123

I agree DEC is undervalued from basic metrics but market has different opinion caused Rusty's lies, dividend cut, increase to already large debt have lost confidence in this company as reflected in the SP, hopefully one day this confidence will return if Rusty can desist from the actions which caused this.

Savage_KeyboardR

"TerryM1 - Look your lot lost the election, Labour are in office now - they've got 5yrs before the next GE to prove themselves. No one, including me, needs any lectures/pontification from Boris/Truss/Rishi backers like yourself. Your lot vandalised + neglected the nation and the economy meanwhile they lined their own pockets. Those days are over now so get over it :-)"

Again you seem unable to read my posts and keep putting up a strawman arguments.

It is simple read my posts, I said I did not vote for the Tories they are not my lot, I have been saying they did a bad job but Labour are a lot worse as we can all see.

Also in my posts which you obviously read because you commented on them I have got over it and decided a time ago to leave the UK with my partner taking all our assets with us to a place with far less tax, better healthcare, far less crime, better weather and where I am respected. I do not want to live in a country where I am just a cash cow and my position of a good tax payer is not respected but just abused. Just need to see the results of the change to planning when I will see what options I have on my small farm, also waiting for to see what happens to Gibraltar as I would like to go there but there are issues as it looks like this Government will sell them down the river to try and keep the EU happy. After this I am off and it is all yours, Labour Government, taxes, debts, lack of confidence, tanking economy etc.

Unfortunately the US seller is probably the companies who got the shares in the latest acquisitions, there are a lot of shares to dump on the market before they are done especially given the average daily turnover. I predicted this at the time these shares were allocated and IMO will be the Sword of Damocles on the SP for a time to come.

Savage_KeyboardR

"TerryM1 - I am not confident you understand the financial situation for CPI"

I am certain you don't, CPI is not doing at all well which you would see is my opinion if you read my posts which is why I said I would not put another 1p into this company as well as other posts going back years. This does not mean they will become insolvent which you seem to believe. Anyway why should you care you don't own shares, have no intention of buying shares and are not shorting the company. The amount of time you spend posting on a company which you have no interest shows you have some sort of psychological disorder and you passion in life is schadenfreude, add in you are in total denial of what the rest of the county sees of Labours abysmal performance.

"by all means you crack on with spouting that Revenues don't matter. Keep on believing that if you so wish."

Now you are struggling to understand basic English. I said

"she is important as can be seen from her tanking the economy...."

Savage_KeyboardR

I keep trying to explain to you confidence is important for the economy and Labour have destroyed that by talking the country down, saying the budget will be painful, lies after lies. Companies, Investors plan ahead and to a lesser extent so do people even a fool could see what is coming which is why the economy is tanking.

The greatest lack of confidence is in Keir Starmer as can be seen from the polls, the most unpopular PM in modern times in less than 6 moths, takes some doing.

Culley01

JL got out when there was very little else to sell, without that there was nothing to pay his hugely inflated remuneration package. No point in hanging around as he would also have to take the blame for the CPI collapse and he was out out of one offs for the accounts and excuses.

"Looks set to crash through the 14p barrier as I highly doubt the BoE decision, minutes and press conference will bring any festive cheer for the wider markets or this stock either."

Another great win for the Labour Government.

Savage_KeyboardR

"You dismiss Revenues as unimportant"

You mean Racal from complaints the CV fraudster and pathological liar (ask the WASPI women and working people) , she is important as can be seen from her tanking the economy and FTSE also her higher interest rates for longer policy that she is pursuing as a result of her actions. Don't say this is left over from the Tories, the economy was growing, interest rates set to drop more and confidence was higher, the public agree as can be seen in the opinion polls and Labour running scared subverting democracy by cancelling local elections so they do not take a beating, add in Keir Starmer spending as much time out as possible of the country so can't be held to account.

Turnover is vanity, profit is sanity, if CPI are in profit they cannot become insolvent.

JG68

"This is what I don't get and I think the market is confused about"

Unfortunately Capita has a history of reports that are as clear as mud and looks like this one is following the tradition.

This was done under JL to hide the real story I hope AH will stop this practice it fools no one and investors fear the worst.

"I don't really know what investors expected from the update today."

Some definite date when this company will make some money, pay dividends and not a life style choice for the BOD, from what I can see at least another year to go but no guarantee we will not get more of these we are all doing very well jam tomorrow reports.