Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
@Capitaliser re your analysis. Capitaliser are you attending the meeting on 21st March ? Perhaps you can raise questions about:
"102m against current liabilities and a further 48m in non-current liabilities. That's 150m of effective debt to customers - apparently ... read the notes on 'onerous contract provisions' ... because of rotten long term contracts imho. Up 20% from 125m last year. What will this grow to next year? How will they burn it down?"
Aim since that post (end of Jan-is that correct?) Capitaliser has been presented with the numbers. He is right to be concerned which is why Adolfo is about to carry out emergency surgery
@Hope-you are quite right. If you don't perform in the private sector you are out of a job. Problem with Capita is that it has been run as an extension of a public sector institution. That is changing. WFH can work if there is no real business need to be in an office or another workplace. Do you really need to be in a call centre to take a call for example?
@RR
Thanks for your input. Personally Im keeping my powder dry for that. Much will be dependant on the outcome of Adolfo's presentation imo. If that leads to a surge in price with a rights issue to finish the job and its plausible I would probably be buying in
@Lordy-seems to me that Capita would be perfect for WFH initiatives, lower property, regional locations and hotdesking
They could decimate their property costs but no doubt signed deals years ago which would make this harder...eventually though this should significantly streamlined
In my opinion Capita has a low financial institution debt for a 2.7 billion revenue company-please dont mistake lease liabilities for example -which makes up £350m of there rolling 12 month liability as pure bank debt. I dont think it is unless Ive misread. I understand that the rents etc are paid out as an operational cost. The actual debt is circa £230m . If I have this wrong I'm sorry
It's quite simple -they have to get their property costs and employee costs on a sustaainable footing . Then if we can win some more work it'll be ok
@ jg-im going to be quite approximate here. if revenue is to remain broadly the same and the 60m is to be felt from q1 that means 45m straight to the bottom line. 100m further savings by the middle of next year . lets conservatively say 70m for growth and 30m to the bottom line and attribute 15m this year.
that means profit should (back of a *** packet ) be 60m up on last year at least. theyve been saying 70-90 free cash outflow which is to be serviced partly from the ferra sale partly through debt so expect to see a higher debt figure next year. thats before you add any wins etc. by the end of 2025 , figures should be improving more materially because no pension contribution and i think we can expect to see further reductions so i think march 2026 we will be reporting mid single digit profit margins. lots of variables in there on the upside and down side obviously but that's my sort of guesstimate. what do others think? off the back of that and if i'm right we can expect a small dividend possibly late 2025 /2026
@Kipper
PS-it was IR but not Helen
As promised here is the response I've just received:-
We do understand the frustration and disappointment to the share price movement in the last week.
Regarding solvency, as we flagged in the results announcement, we had £282m of available liquidity at year end, we then received £51m of net proceeds from the Fera disposal in January 2024, these two combined more than covers the forecast free cash outflow in 2024.
Following the roadshow, we received positive feedback to Adolfo’s initial thoughts about the business and where improvements can be made. Looking at the trading flows, it appears that most of the trading volumes have been through retail brokers and not institutional flows (we have not received any TR1 notifications). We had good engagement during our recent roadshow but it may be that some non-holders want to hear more detail in June than commit now. There can of course be many factors impacting when an institution buys and sells shares.