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Huge UT numbers are always part of triple witching ..... And by the look of those numbers .... Triple witching must be today

@passingrhru

You'd think that £300m liquidity would be more than enough to cover th forecast £70m - £90m cash out flows ....

And of course we are going to see £160m of cost saving too ... So this isn't going bust any time soon ...

Just need to get on with the execution of what AH promised and we should be fine from 2025 onwards ...

Thanks god JL reduced debt (by selling all those businesses) or we would have probably gone bust by now under a mountain of unsustainable debt!

@Trisor

I can't see Schroders accepting 20p as they've got about 19% of the company at around 40p plus

I think a lot on here would be happy to exit at 25p / 30p but it's going to be down to what Schroders and other IIs think ...

I'd say you've just got to be patient.

No way is this company only worth £200m with a £3billion annual turnover ....

So .... Either the share price is going to rise or we are going to get bought out ... As we are entering bargain territory ....

I don't subscribe to the theory that this is going the same way as Cineworld or Carrillion as we aren't sinking under the weight of unsustainable debt ....

The one thing to say in JLs favour is that by reducing debt and securing the balance sheet - he's given AH the foundation to rapidly cut costs to improve profitability.

I would also say - probably controversially - that JL may not have been able to sell the businesses (with all the associated exceptional costs) AND cut staff / costs (with even more exceptional costs) at the same time.

The weight of financial losses would have been too great .... Ha don't shoot the messenger .. just an opinion!

We can't be far away from a takeover offer now .... He said hopefully! LOL

@Lordy

I think it's a special company that can turnover about £3 billion revenue each year and never make the smallest of profits!

I invested because I believed that 3% to 6% profit - upto £180million a year - would be readily achievable after the debt had been reduced and the business had been refocused and that would support a higher share price.

So I, too, believed that JL was doing the right thing in selling the non core businesses and it also looked good that Capita was continuing to grow whilst at the same time selling businesses thereby reducing revenues.

It looks like we've both been sold a pup and our only hope for a quick exit now is some form of capital event ... But I'm not that lucky with shares so I wouldn't hold your breath.

Very disappointed we've dropped so far - I had braced myself for 16p again but never thought we would see 14p - how wrong I was ....

@Trisor

I totally agree that what we've got here - right now - is a traders share and that looks to be the case until at least June and possibly August.

Everyone jumps on the boat at 14 / 15p and everyone jumps off again at 16 / 17p ....

I'm heavily invested here and I, too, believed JL when he said things were going to get better from here on in and feel very deflated and let down.

However - I don't think I've got any option other than to try and trade this share myself now (to further lower my average hopefully).

If you can't beat them - join them!

I saw this posted over at ADVFN and I agree with a lot of what's said BUT I disagree that Capita isn't growing - because it has been growing to make up for the revenue it's lost in sale of non core assets.

Interesting assessment all the same ......

I just looked back at Capita results from 2016. Back then company had roughly double the current revenue but also 1.9 billion of debt (not sure if that included leases or not). Leaving out the contractual commitment to leases, Capita currently has c.160m of net debt.Note, the bulk of the debt reduction came from a 700m RI in 2018 and the rest from disposals. But basically the last 6 years has been about survival (because without the RI and the disposals this would be bust).So, on the one hand the company has survived and is manageable, but on the other there is no growth and meagre margins.

Probably not worth exiting before 17p - might as well scalp a decent percentage rather than losing all the profit in dealing charges and stamp duty.

For what it's worth - I'm a seller at 17p too

@Kipper

Very different to JL .....BUT .....will the Cabinet Office like him as much as they adore JL .... And will AH be able to continue to secure large Government contracts when he demands that those contracts MUST BE profitable for Capita.

JL ran CPI like a Government department with no focus or regard to profitability .... AH is a different beast altogether ....

Https://www.telegraph.co.uk/business/2024/03/07/capita-freezes-pay-thousands-of-staff-cost-cutting-drive/

At last Capita - and AH in particular - are grasping the nettle and cutting costs.

Articles like this tell me that AH is determined to change Capita from being a sluggish government extension to a lean, mean and proFITable services business that rewards their stakeholders.

First bit of good news I've seen re: Capita this week!

@WarrenBJunior

A company with THREE billion turnover - but zero profit because of ongoing and ongoing and ongoing exceptionals (as costs are cut, goodwill written off and employees fired).

In theory - a takeover at this level would be obvious (assuming the new owner could strip away the fat to create the profit) but in practice - less obvious for at least two reasons.

1. Schroders and other II are holding large quantities of Capita stock with an average between 40p / 50p which means a T/O of less than 60p plus looks unlikely.

2. As others have said - the relationship between Capita and the Government is critical and almost a matter of national security so I can't see a takeover being successful

So frustrating ..... But a knight on a white horse to save this company looks improbable

My God - AimMaster buying - it's a signal - it's like a British Bulls signal - AimMaster Engulfing - jump on your wagons for a new bullish profit!

Good luck AM - annoyingly you have called this share very well over the past (many) months - perhaps you've posted MUCH MUCH to often at times ....

But I'm hoping to ride on your lucky coat tails to exit this CPI "hole of doom"

@Lordy

I am really hopeful that, moving forward, Capita will beat the dire outlook predicted by AH yesterday. That should provide gentle upward momentum in the SP.

I think we are a long long way from those 50p days but I do think that 25p / 30p will come back quicker than many expect at the moment.

I do think this is a traders share until we get clarity on June and more numbers in August so - if you can't beat them - join them - so I will be trading and scalping over the next few months too.

Good luck to everyone who are in the CPI financial hole along with me.

I can't bring myself to write to IR again - I wrote last August and received a lovely reply back - unfortunately a lovely reply doesn't recoup the paper loss I am sat on ....

The numbers speak for themselves and they don't paint a pretty picture..... I'm just hoping everything has been kitchen sinked and things can start to heal from tomorrow ....

However - a continued sell off here cannot be discounted as the faithful run for the exit

I did buy a few more today but I've probably thrown good money after bad!

@JG68

My take is that Adolfo has under promised so that he can over deliver in the June strategy update and the August results.

Makes a change for someone at Capita to under promise (usually it's the other way round) ....

However - I do believe this will gradually move back into that 17p - 23p range and I'm hopeful that will happen in the MEDIUM term.

Short term ir is anyone's guess - 14p doesn't seem so far away now but, equally, you would hope that director purchases can hold some sort of floor to the share price.

More waiting I'm afraid!

Good luck to all us beleaguered LTHs for tomorrow.

Remember - Fortune favours the brave .... We've all been brave (investing in CPI) - now it's time for us to be rewarded ....

@Cashola

Capita have got previous form in running a higher share price as we approach results ...

The last time we saw a surge like this prior to results was back in August 2021 when the price moved over 10% in a couple of days ahead of very good results (that saw the share price add a further 35% or so).

All looks good here (especially if the good results are leaking)

@NoFear

I didn't think you were posting here again until after March results 😁

You are forgiven though as another £33million worth of business is always welcome!

I see the 'gruesome twosome' are put de-ramping again this weekend!

All I would say is this - Adolfo is very successful at what he does (ie: make and run profitable companies) - and I am sure he did a huge amount of due diligence re: moving to Capita as CEO before leaving Amazon Web Services.

We can debate how effective or ineffective JL was (although I think history will judge he stopped Capita from going bust like Carrillion) - but Adolfo is hardly going to jump ship - if the ship has got a huge hole in the starboard side and is beginning to sink.

In Adolfo I trust - in AimMaster and NoFear I don't - should probably get T shirt printed

@Trisor

This will come good in the end (although predicting when the end is here is proving tricky) ....

I would say though that when the end finally arrives there will be loads of people who would have cashed out far too early (like you did at RR) convinced that a 50% return is stellar ...

I think that's the hardest issue with stock investing - knowing when to sell - and the only advice I can offer is to sell in tranches so if the SP does keep rising (like in RR) then you are at least still holding some shares.