There has been an absolute barrage against Jeremy Hunt's plan to raise corporation tax. If that doesn't now happen or the increase is reduced there will be pressure to reduce the public sector headcount and pension liabilities instead, in order to balance the books.
That should benefit Capita's public sector outsourcing division.
Second, AI skills will be much in demand and the experience division has a very capable new head with lots of credibility.
Taking the two together and given the turnaround, I am very confident about the future here.
The only thing that does worry me a little bit is the firm's woke culture and work from home. It will be interesting to see how that affects performance.
Thanks Aimmaster.
As I said, your comment yesterday that Capita was about to crash persuaded me to keep hold of my full position in CPI in anticipation of it rising strongly. I therefore didn't have more cash to put into easyJet before its trading update this morning and have lost an additional gain of approximately £10,000 as a result.
Next time you feel it in your waters perhaps a trip to the bathroom is the most appropriate response rather than soiling this board. I hope capital will start to rise strongly today and you were just out by a few hours.
Jeez
This is such good news that I would be surprised if we do not now see a strong rise in the share price. If they can do it with Freenet they can do it with anyone, very profitably and with a lot of credibility. That's a sweet spot.
I'm getting the impression that capita is no longer hanging on by its fingertips, it is driving forward through digital services which are immensely scalable and crucial to big business and government.
Surely the point about Capita is that the business has turned around and is now well positioned to pick up UK government work as the civil service is slimmed down. Yes I suppose it is not ideal that interest rates are going up but they're still incredibly low and the business has prioritised debt reduction.
At the end of the day you have to ask yourself if the business is going bankrupt. I don't see much risk of that even if interest rates go up in which case as it starts to win more business the share price should rise from the current very low level.
Doesn't the UK government want to have more than just Serco and MITIE to bid for work? Certainly the American government likes to keep competition going in government procurement.
Anyway I'm not giving advice I'm a complete amateur looking at this on a very simple basis so if I have got it wrong I'm sorry. The thing that worries me is that this seems like such a good investment story that I must have missed something. I am planning to hold on and see what happens.