The article says that Adolpho doesn't have experience handling uk quoted companies.
Comments:
"The coming ICO fines, court ordered compensation when class action suit and other client damages claims come to conclusion, and more revelations about the extent of the data breach, will all sustain the bad news flow for a while yet. Add the lack of any material investment in meaningful digital capabilities over last 5 years, which has left the business seriously behind competitors, will further compound the new CEOs challenges. Hope he asked the right questions and spoke to the right people outside the business before accepting the role!"
"If you speak to enough people who have worked at Capita in senior roles during his tenure, you will hear a very mixed picture. 5 and a half years, over £1bn invested from rights issue and early divestments - result: c.90% share price reduction. Not much of a turnaround. On the other hand the business is now simpler, just 2 market facing divisions, and all the profitable SW business sold off to pay down debt. So arguably now ripe for the 'coup de gras' - breakup and sell off what's left. Capita RIP."
"Not least of the problems is the fact that CAPITA has clearly been maintaining personal records on myriad individuals with whom they have no, direct contractual relationship and from whom they have failed to secure explicit consent for the maintenance of these records (assumed consent being one of the exclsions at the heart of the GDPR)."
Yes I would be astonished if, after all the agony for shareholders over five years they don't at the very least announce the future payment of a dividend.
They will have made all the disposals by the end of this half and to have right sized the company - so if at that point they just share that the purpose of the company is to pay executive wages only I'm not sure they would be receiving those wages for a lot longer.
Does anyone think they won't even talk about a future dividend?
I am the first or one of the first two admit that I am a total ignoramus about these matters but doesn't the extension of a credit facility for a company with no debt suggest having a backstop to allow the payment of a dividend?
Serco has upgraded its revenue and profit guidance for this year, as rising demand for the outsourcer’s immigration and defence services boosted growth.
The London-listed contractor, which manages services for governments worldwide, said it was increasing its forecast for organic revenue growth and underlying trading profit by around 4 per cent in a statement on Thursday.
Serco said it now anticipated revenue to rise to at least £4.8bn this year, compared with £4.5bn in 2022, while it expects underlying trading profit to rise to around £245mn.
Yes there is so much negative sentiment out there about Capita. I was drinking last night with a former minister and his entourage who were scathing about Capita particularly army recruitment services. One of his team used to work for Capita and was pleased to have left.
The MP said he had been told that the hack is worse than has been publicised, but I don't put any store by that because MPs are gossips and want to look important.
I was hoping that one of them would agree that the company can assist with AI given that Mr Sunak is supposed to see it as the salvation.
This share hit 44p briefly in March.
The hack seems to be more of a media story now than a threat to the business.
So as the business improves if we hold on we're going to get back to 44p.
Is that mistaken somewhere? I cannot believe that the terminal point of this company was a few hours in March.
You've got me with the concept of triple bottom but I am more confident in your comments than the 'judgment' of drama queens who get off on being anonymous keyboard warriors against people's investments. Everything they say is nonsense but they hope to find a newbie they can upset 😭
It's a bit of an understatement to say that CPI has been an unlucky share.
BUT
that was then.
The NHS and social care will have to do more with less. That means outsourcing, especially since domiciliary rather than residential care is all that can be afforded. There is no more cash or staff for in-house residential care so someone will have to organize home visits and community warm spaces. Capita?
The Civil service is increasingly working from home. Managing that is a Capita specialism. Being a living wage employer will definitely help move business from the state to the firm.
The extremely rapid increase in interest rates will put phenomenal pressure on government spending leading in my opinion to a sea change in attitudes. The only way to avoid major cuts is going to be to outsource. It is the end of the low interest rate environment that will drive Capita up. The government is increasingly running out of money and getting desperate with an election next year. Up to now the government could borrow very cheaply and have as many employees and provide as many services as it liked. Nobody cared whether the employees turned up for work or not. The only way not to bankrupt the state is going to be to outsource and digitise.
We are all nervous due to the ridiculous decline in the value of this share recently but I would like someone to show me where I am wrong with this analysis.
Then I really will freak out! :-)