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Summary (not advice and may not be full and complete -just what I picked up)
-acknowledgement of underperformance
-2023 affected by non recurring outflows, these wont re-occur (mmm) in 2025-eg pension.
-Positive FCF during 2025 all things being equal
-expect net debt increase in 2024
-AH says results not what it should be-value is locked in company. Numbers don't tell full story. Must dramatically turnaround the financial performance of the business
-initial observations are that Capita is vital to society, but a lot more value locked in that he thought. No 1 thing for him to be held accountable is to translate value
-moving to standardised repeatable delivery
-attitude to technology will change-must inject more technology. Simplification of operation. Will make us more competitive
-Jon had to deal with debt reduction-very challenging-pension contributions
-AH owns past but will focus on delivery
-being decisive on spending and cutting costs
-building on proven scalable technology
-Governance is a bit stiff which is taking away speed of decision making-that needs to be addressed
-AH says he could have backed out but he sees an exciting challenge-opportunities in the market. Means a lot to him that Capita is important to society. Wants to do well and good for society. List of customers are the big attraction. Customers want Capita to do well. recognition it would be painful. Needs to get leaner to grow. Knows starting point is challenging. Need more simplification. There is a good group of people
-Capita team has tried to be super transparent with II in light of poor sp. Convinced a big opportunity to unlock value, digital transformation will key -he thinks its a good space, been transparent with action Action today. AH is maximising everything with incomes to get right outcomes. Has empathy with people who have invested. Energy is being put into building platform. Results are what they are -not kitchen sinking. It is what it is. Is going to make the business more efficient.
- Went through SDL example of how he helped make a good go of it
-prospects of dividend - if things go well. AH need an option. Its his intention he will become a more normal business, profits etc. There will be optionality . Not opposed to it. Doesnt have optionality today. No commitment to when
-Margins -he will come back on capital markets day
-Cyber incident-AH is spending a lot of time on it. Exceptionals are in the 2023 numbers
-AI-AH super excited about Gen AI. He believes impact will be great. Gen AI work -Capita will build a catalogue targeted in certain areas . Use case by use case
- financial performance not where it needs to be -going forward committed to improvement-lower risk being implemented. There is value in the market place which needs to be unlocked and its a journey to create the shareholder value
Trenners 20p?? Jesus Christ-when Capita are about to strip 100m out leaving us with say 100 m profit by 2026 -surely not that low. Besides thats below my average and that is simply not acceptable -I hereby reject the offer ...:-)