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I agree - no dividends here for some considerable time not least because it's something that AH has never mentioned (as he knows there are a lot of issues here to sort first)

I think we should be grateful for FCF asap plus, perhaps, an announcement that the £250m cost savings have been achieved ahead of time and a further £100m ear marked for 2026.

If we get those things then I would hope we would get to at least 20p in old money!

@JG68

Failure is not an option (or a likely outcome) here ...

There are too many highly respected technologists who are wedged full of CPI incentive shares to turn this ship around.

The huge incentives were needed to lure them from their mega lucrative remuneration packages at Amazon and they, collectively, would not have come here to fail

Successful people like them simply DON'T FAIL

So the only debate here is whether FCF will be achieved in 2025 or 2026 or 2027 .... at which point the For Sale sign will be hoisted above the company as the turn around will be proven to have been completed

And whilst we wait for FCF we can be safe in the knowledge that the company will continue trading through it's multi year contracts.

I've been Bed and ISAing this week and am not at over 1.6m shares (which is the most I've ever owned) but even though I've ISAd everything .... I can't bring myself to sell any of the shares in my dealing account as we languish in the 12s

@JG68

I remain optimistic here and it's good to see some tasty contract renewals and heartening to see a contract extension today that includes the new AI product.

It may well be that the days of announcing multimillion pound contracts (that require huge CPI upfront investment and run for many years) are a thing of the past ...

Instead we will see a steady stream of lower value wins (possibly not big enough to be RNSd) but also, just as importantly, wins that won't need massive upfront capital outlay as we partner with the hyper scalers instead.

I think this is going to drift until we get FCF but it's got quite a bit of space to drift into given that even RBC think these have a 20p (old money) fair value.

As for Richard S. - I imagine he's sat (like the rest of us) waiting for the turn around to complete so that the business can be sold for many multiples of this ....

At the end of the day CPI is UK focused with minimal debt and huge Government contracts to underpin it. We should be safe irrespective of what Trump decides next ...

@Adam

All those free shares being handed to AH and his team have got to come from somewhere .... and the somewhere is the 7 million placing .....

Net result is that we get marginal dilution so that the management team can continue to be rewarded .... which is fair enough if they are doing a good job ..... and at the moment (and for a change) it looks like they are worthy of their free shares!

@Trisor / Simples

AH stock options were calculated at just over 19p each to compensate him for the stock options he was walking away from at Amazon .... Plus I think he's bought shares himself at around both 13p and 15p (from memory).

He - along with his hand picked team - have come hear to make themselves much much richer than had they all simply stayed at Amazon ....

So .. yes I expect we will eventually get bought .... but I also think the sale price will be many multiples of AH stock options (otherwise it was pointless coming here to turn it around).

Also ... I don't expect a buy out until 2027 .... by which time the cash should be flowing and the turn around should be proven

All in my opinion .... but I'm happy to wait to 2027 and ride on AHs coat tails!

AH vested shares will get consolidated too

@Terry

Capita at 12p is a gamble? Surely not? That can't be right.

It must be the bargain of the century!

We are still winning and extending lots of contracts and have lots of bankable revenue as a result. We've embarked on the right strategy to return to profitability in very short order now.

I can't think of any stock that offers more upside than Capita @ 12p ..... I will be bed and ISAing to the maximum and also stuffing my pension full of Capita stock as well.

I can't believe we've got this low and we might even see 11p next week .... Time to buy amongst all the noise and fear ... As there is absolutely nothing to fear here!

@Hosai

Of course if you don't want to bank the loss in the 2024/25 tax year (because you haven't any gains to offset it against) then you can always simply Bed and ISA on Monday .... or indeed at any time in the next tax year.

I'm waiting until next week and will bed and ISA in one transaction (controlled by the dealing platform) ....

@Trisor

I'm creating a loss in my DEALING account by selling the stock at a loss so that's a capital loss (as long as I don't buy the same stock back into the DEALING account for 30 days then the full capital loss would stand).

At the same time I'm going to add £20,000 of stock into my ISA so I then add back the shares I sold - less small spread and dealing costs ... Thereby reducing my ISA average and I'm NOT impacted by the 30 day rule because I'm buying back into an ISA.

Gains and Losses held in an ISA are not tax deductible so if this goes bust then I would lose all my ISA money and I wouldn't be able to create a capital loss in the ISA ...

But if it recovers I wash out some of the loss in the dealing account

.... what is perverse is the lower this drops .... Then when I bed and ISA next week .... I create a bigger capital loss (to offset against future gains) whilst also rolling over loads more shares (£20,000 worth) as the price falls ....

It would suit me to see 12p or lower next week as long as it then went on to recover .... as I get more shares washed into the ISA (thereby lowering my ISA average) whilst washing out non ISA losses.

Ha who would have thought I would be willing this lower in the short term! 😁

But

Of course, if it doesn't recover then bed and ISA is pointless ..

Great news Adam ....

Thanks for the heads up! I'd buy more shares if I didn't have too many already 😁

@Aim

JPM upgraded Ocado to Outperform and increase the target price by 15%+ and the share price surged ....

RBC do the same here and we still can't hold 14p with zero surge ...

I'm just wondering whether - with the tax year end approaching that IIs (and PIs for that matter) are selling into any rally to crystallise losses with a view to buying back either at the start of the new tax year OR after consolidation.

Someone here suggested the SP will probably fall after we consolidate on 29/04 and there does seem to be some mileage in that theory ...

If correct then sell last / next week, book the loss, buy back shortly after consolidation (having waited the mandatory 30 days).

That could explain what's happening here!

@jg68

Well we got the close over 14p at long last and let's hope we can build from there now that Schroder have bought back what they sold a few months ago ...

Are you still in the bus shares (MCG) - should I take a punt?

@TerryM

But surely if we are partnering with hyper scalers then we are, by default, off shoring AI into the hyper scalers global data centres.

The important thing here is that Capita are not building their own infrastructure anymore but are leveraging their hyper scale partners capabilities and using it's BPO experience to integrate this technology into customer service delivery .....

I don't think the cost of UK energy has any bearing on this .... ?

@TerrryM

I don't think you are correct - if Capita becomes a BPO system integrator on the AI space with a number of referanceable successful stories - I think that is very different to what the rivals are doing.

The products / solutions / service offerings being created and productised by Sameer (ex Amazon) is totally different from anything I've read from competitors.

Being a BPO system integrator that can introduce and integrate AI into customer service settings is a massive moat and is fundamental to what AH is trying to achieve imo.

AI solutions will not be won on price .... They will be won on the cost savings that the AI led BPO solutions will deliver to the customer.

@Adam

That's the problem! He's not a genuine investor! Never was and never will be .....

I've filtered him and I would recommend everyone does the same then we don't need to be bothered by his wild musings 😁

@Wednesday - consolidation will hopefully stabilise the SP and stop it being traded like an AIM share ....

Also a higher consolidated SP should catch the eye of those IIs that simply don't invest in penny stocks.

Cleaning up the balance sheet must be to make the business more attractive from a sales perspective.

I guess - as AH would say - a share consolidation does deliver "debt optionality" in that it would be fairly easy to place a few million more shares if they did need more money to keep the wheels on the bus turning but, as you say, that doesn't look likely right now.

I, personally, view all these changes as very positive (and a breath of fresh air from the old guard management).

I can't see AH and Pablo and Co wanting be locked into Capita for many years to come .... so would anticipate a sale by them within the next 2 to 3 years ...

So - do we think the reason the Board are cleaning up the balance sheet and consolidating the shares is:

a) They are readying the business for sale once FCF is achieved.

b) They want to raise more cash and a placement / RI is easier with so many fewer shares.

I know it's hard to see through the noise here ... my feeling is that they want to get the business ready for sale as, with minimal debt and free cash flow soon I can't see the need for raising more cash ....

What do others think?

Any long term holder selling before consolidation is foolhardy at best ..... as the cleaning up of the balance sheet and the consolidation of the shares is another clear indication that the Board are getting this in a "For Sale" ready state .....

I am going to bed and ISA to shield my investment from tax but I've no intention of reducing my holding until all this plays out ..... I've simply waited too long!

It's a 15/1 consolidation - so a 15p share now if £2.25 after consolidation on April 29th.

Not sure if all these changes will immediately benefit us or not ... But not long to wait to find out!

Good that RBC have finally turned positive on CPI and - as that news sinks in - hoping it's a turning point for us all!