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Chaps, there is hope. Adolfo looks determined and has grasped the issue on costs.
I wouldn’t blame anyone for selling though. Dire day today. He has kitchen sinked it today which is a good thing. Strategy to follow in June.
Contract wins
Total contract value won £3,036m (2022: £2,593m) driven by strong performance in Public ServiceBook to bill ratio 1.1x (2022: 1.0x)Contract win rate across all opportunities improved to 62% from 57%. Material improvement in win rate on new and expanded scopes of work from 32% to 70%, reduced renewal rate reflecting pricing discipline across all bids
Outlook for 2024
2024 revenue expected to be broadly in line with 2023Modest improvement in operating marginFree cash outflow £70m to £90m after c.£50m cost of delivery of efficiency programmes
We need to deliver a rapid reduction in our cost base and are on track to deliver the net £60m annualised cost savings, from Q1 2024 as announced in November. Today we are announcing further material efficiency improvements of £100m to improve our competitive position.
"We have strong foundations and the opportunity for significant growth in the medium and longer-term. I look forward to sharing more details on Capita’s future strategy in June."
Not really sure what to make of this…I’m not an accountant. I can see 2023 wasn’t a great year but like the cost cuts and rationalisation of property . Much needed. How will they fund the 100m cost cuts exactly?
Lewis what have you been doing?
At least all the bad news is out and now we just have to wait.
Dear Market
Things have been highly crap. We racked up serious debt. Had shed loads of one offs. My mentor, John Lewis, reduced the debt and has been instrumental in improving margins on contracts but growth hasn't come. No FCF.
I'm here now and Guess what
1. Anticipated FCF this year will be £150m thanks to contracts and more revenue and anticipated wins this year. Bully
2. Debt will continue to be paid down
3. We are rationalising our real estate portfolio and reducing our liability
4. My employees love me and I love them. I'm woke and proud
5. But I'll probably sack a few
6. I'm settling this pesky IT case by making a payment of £12.5 m
7. No fine . It wasn't really our fault , it was the Russians
8. Plan is to expand into and grow the Europe and Asia offering
9. I'm using this AI things to improve margins. Mates at AWS are helping me out and giving me some tips
10. Oh and finally, because of all these things you the poor , downtrodden shareholders can have a dividend this year
11. Sorry, one further thing. I'm sinking in £250000 of my own hard earned wonga just to show you how confident I am
#Capitaisbetter