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I think it's a racing certainty that CGT will be raised (probably to Income Tax levels) in the RR October budget.

There is a big black hole in Labour finances and they will need to raise taxes so CGT, IHT and Pension Tax relief are all within her sights as well as a raise (or removal of the cap) on fuel duty.

Pensioners who voted Labour already have buyers remorse now they've lost their winter fuel allowance. The rest of us will need to wait until October to be disappointed

@Savage - you do talk rubbish some times / a lot of the time!

Capita is a very good, recession proof, stock as it's customers sign multi-year contracts so the company is pretty insulated from recession.

And Capita are not 'investing' in AI - they are partnering with the likes of Amazon and Microsoft to provide innovative AI solutions ... no profit, right now, is being invested in AI.

If you've nothing sensible to say - it's best to say nothing at all - that's what my mother used to say!

.... And what I like is that he has personally funded the £188,000 due in tax and National insurance payments ...

The shares may well have been "free" but he's paid the equivalent of 7.5p per share to cover tax etc ...

That's another £188,000 vote on the future success of Capita from the (soon to be) very rich CEO😁

Morning Savage - a short answer to your question is NO.

AH is building a leaner, meaner, fitter and profitable Capita.

Historically Capita have been "busy fools" in that they have been delivering excellent services for the customers (who love them) but have been making zero profits for their shareholders.

That mentality has now changed and the focus is on profit and productivity efficiency savings. I agree that revenue may fall but what's the point of revenue if it creates ZERO profit.

I would much prefer Capita to be a £2bn revenue business creating 6% profit than a £3bn revenue business creating

2% profit.

Another thing - which I think you have missed is that the cookie cutter approach of productising services (invent once and sell many times over) - such as the recently announced AI tools / services - is something of a new approach for Capita (who often used to create bespoke client solutions) and is transformative from a profit perspective.

BT ex dividend this week - still time to buy some Capita with your BT dividends 😁

I agree - the 12.4p (from Capita One) should be baked into the price ... But we were trading at about 15p+ BEFORE the announcement of the Capita One sale ..... And we are still around that number now SO it doesn't look as though the extra cash has been "baked in".

Like many here, I am expecting an uplift to at least 23p (it should be 26p really) when they announce the money is in the bank ....

However ... WTFDIK .... I haven't worked at a bank in the city for 30 years .... 😁

@JamesOxford - I cannot agree with your current valuation of Capita at between 14p - 16p as this makes little sense given we are about to become debt free by receiving £210million (worth about 12.4p per share alone).

If you look at the underlying numbers (going back ages) you will see an underlying profitable business that is continuously knocked off course by one off / exceptional items (mainly caused by the costs associated with the large number of business exits over the last few years).

Now the exceptional are clearing through and the margins are being improved - there is no way this can only be worth between 14p and 16p and this is confirmed by the many analyst covering this stock.

Technical Analysis suggests we are heading for a return to 23p and then onto 30p and I fully expect both of those target to be hit before we get our next set of numbers in March 2025.

@Kipper - unless you are a penny pinching day trader (morning NoFear 😁) then of course it doesn't matter if you buy at 15p or 16p if your goal is 50p!

I wouldn't have believed - a week ago - that these would have returned to a price below where we were after announcing the sale of Capita One.

Topping up at these levels is obvious .... Imho (morning AimMaster😁)

I decided to add 20,000 shares more today and it took about 20 attempts before I could buy any Capita shares with AJ Bell and, even then, I had to pay a premium price (16.75p) - not that 16.75p is really a premium given what we know about Capita.

So lots of jiggery pokery going on with this share behind the scenes I think! Anyway I've got 506k in an ISA now away from greedy Rachel Reeves!

@Kipper - I don't think you need to go fishing here - after Fridays update it's pretty clear that anyone entering at these prices is getting a bargain with the potential to multi-bag within a year to 18 months.

I've resisted (so far) adding any more and probably won't unless I see a SP beginning 14 .... Which I'm not expecting and will be astonished to achieve ...

Unbelievable that these spiked to 22.4p on 17th July and then provided a fantastic update on 2nd August yet it was easy to pick them up for 15p today!

@sharehead - I just think we all got robbed on Friday as the SP was played ....

So - we focus on driving down costs and increasing margins (by being selective on what we bid for and also introducing efficiency in what we already deliver). That's precisely what's needed.

It's pretty obvious that revenue will dip if we are more selective and refuse to bid for poor quality / low profit business.

Yet the drop in revenue was used as the excuse to drop the SP by over 12%.

I thought the results were good and the execution of the strategy was astounding.

Also - coming from an IT background - AH understands that productisation (rather than creating individual bespoke solutions - which is what we did in the past) will deliver the road to much increased productivity and profit.

In productisation you develop a single solution/ product and then sell the same thing over and over again. Absolute genius!

Friday was a bad day for the markets and I'm expecting strong rebound for CPI this week as I honestly don't know what else the City could have expected at this Half Year stage.

Another example of the SP being totally disconnected to what the company is delivering. I too am hoping that AH and the team buy more shares this week to underline their confidence in the winning strategy.

It will.be interesting to see how much of yesterday's fall was US related versus Capita related.

I see after the initial sell off, and after AHs presentation, the SP recovered to actually be UP on the day ... And then the rot set in and we had a downward spiral for the rest of the session.

I'm hoping, after a weekend of reflection and the US selloff abating, we will quickly recover the lost ground next week.

With those results then no way did the SP deserve a 12% basting .... and I am confident sense will prevail soon

So maybe the MMs are targeting that 16.2p gap ... I couldn't believe that would happen yesterday ..... But today it looks a distinct possibility

Horrendous to watch .... I wonder what would have happened if we had delivered bad results? Ha! Perhaps the SP would have risen.

Spreads are huge today and price is definitely being manipulated and I'm not even convinced it's possible to buy many capita shares in any quantity.

I am convinced that PE or a MBO will occur if the SP doesn't start picking up pretty quickly as - who wouldn't want to pick up a profitable services company with over £2bn revenue that is moving quickly into the AI space.

I know I've been bullish on CPI 'forever' but today's SP action just seems unbelievable.

We are receiving 12.35p/share at the end of the month for Capita One yet our total company value is sub 17p/share now ....

Doesn't feel right at all and something is in play in the background I feel

I can't see anything that really concerns me in those results - OK we missed revenue but we increased profit and we've reiterated that profit is the focus moving forward.

Cost savings on track, articulated strategy being executed (for a change) and pivot towards AI to drive productivity, company growth and profitability.

What's not to like - I'd hope we'd be seeing late 20s over the coming trading sessions after a sustained rally (irrespective of what the wider market does).

Only 18 minutes left to see if I'm right or not!

Nice to see the share price so perky (so far) today ..

Capita have always been a bit of a leaky ship and certainly, back in 2021, positive SP movements the day before results led to a massive rally from 36p to 50p over a week or so ..

Id would be ideal to close above 20p today ... Id like to say above 21p but that may be demanding too much!

SP seems to be all over the place this afternoon (especially) and yet it should, surely, be storming ahead with all these AI related announcements?

When they start signing customers for their AI services (assuming they haven't already done so) - this is going to get really noticed ....

Until then we let the MM hold the share price back for a couple more days with their A trades

@Aim - surely this has got to ping as I can't envisage us going into results with an SP under 20p.

Back in August 2021 - the share price rallied 10% on the day before results (closing at 36p) and then rallies all the way up to 50p within a few trading sessions.

We are in a much better position that 2021 so I am expecting a similar outcome this week too

@Crowman - I think that's a wise decision - I honestly think the days of hedging (under JL) have passed and this incessant push towards Generative AI products and services is only going to be good news for the SP.

Also ... assuming the city have forgotten the £51m received from Fera .... The results could actually cause a surprise!

@JG68 I think we are trying to buy a rise but price is held by the A trades / MMs.

Doesn't really matter what they do leading into Friday as, even with results in line, this surely needs to rise again with the Capita One sale money on the horizon ...

I agree that the H1 2025 numbers will start showing the results of AH's strategy but with a forward looking market and a debt free balance sheet .... Surely we've got to get above 30p or even 40p before then ....

I still think these will bag within the year and it's just a question of when that uplift begins .... and I'm still hoping we will get a good rise out of Friday.....

I can't see how these can really fall from here with £210m shortly arriving for Capita One

@Kipper - the whole run into results feels different this time around - much more optimism and it feels like the MM are trying to hold this down ... Unjustifiably... Imho

Although it's tempting to hedge (and sell a few before Friday) - I can't bring myself to do it as I think 19p for Capita is an absolute joke (and even more so after the sale of Capita One).

Those hedging may regret their 19p hedge when we open at 23p on Friday morning .... All just my opinion BUT ..

Having held CPI for many years - I've never sensed this mood of optimism and hope before and announcements of partnerships with Amazon and Microsoft only strength that belief ...