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All will be revealed on Wed 6th March FY results.
Also be great to get new CEO's first impressions and next steps especially opportunities automation and AI wise.
This has been suppressed for so long it is untrue. Feel this is ready to explode like Rolls Royce and as other stocks have eventually done. Maybe, this will now be Capita's turn.
I'm looking for initially 2 to 3 bagger at these prices, and mid to long term a 5 bagger plus!
What I do know from Capita's investor relations is that they do understand that now the company needs to really focus very much on delivering shareholder value.
I understand after the results have been announced over the coming months there will be investor days promoting the company. You need to be able to have the foundations in place to be able to do that so see this as good news.
Time will tell, if our long, long wait has finally been rewarded or we will here more jam tomorrow.
Think we see first resistance point of 23p being tested in next few days. Good positive update and I expect 23p will be a distant memory of the past.
Aimmaster and no fear. Your so obvious to everyone. Think we will finish the week higher.
I know quite a few who will be buying and adding this week.
Got real potential from here. Just for your info after restructuring Capita is now focused on increasing shareholder value as a priority. The March update will emphasis this point. That's why cost savings accelerated. Alfonso will give his initial thoughts in March update which will be followed by investment roadshows.
Not long to await until 30th Jan trading update.
Eldose has been consistently buying and increasing their % stake in the company.
Travel cruise business booming and insurance market has turned the corner so expect a breakout if this is confirmed in trading update with positive forward looking statement.
Obviously Eldose very confident.
Before, the RBC note, and that's just one analyst brokers note, I think most were expecting the rerating process to immediately start with Capita being undervalued by the market.
Now debt and pension liabilities have been reduced, it is now shareholders that need to see a return. This will be the BOD focus going forward - accelerating the cost reduction programme to drive improved profitability and therefor free cash flow.
When the new incoming CEO Adolfo gets his feet under the desk I am sure he will give his first impressions and opportunities for improvement in March update and then give more detail in an investor meeting event a few months later in H1 to explain with his insights, background and proven track record how the Group can best accelerate profitable top line growth and deliver value for shareholders.
This certainly isn't the time to be bailing IMHO!
Lets see time will tell.
Had success with Interpersonal Finance, Rolls Royce, and recently after waiting for what seems like forever (like Capita) Costain's rerating is commencing with SP increase gathering pace.
Costain Group PLC AMP8 Water Framework Win with NWG & Trading Update
10 January 2024 RNS
Costain AMP8 Framework Agreement with Northumbrian Water Group and Trading Update
Appointment adds to Costain's wins in the new water regulatory cycle
Costain Group PLC ("Costain", or the "Company") announces that it has been appointed by Northumbrian Water Group (NWG) to shape, create and deliver its strategic infrastructure upgrade programme. The framework will see contracts awarded with a potential value of up to GBP670m to Costain during a 12-year period and builds on recent significant wins in the water sector for the Company.
The framework contract will see Costain work with NWG and its partners to shape, create and deliver solutions to meet the strategic needs of its business plan during Asset Management Period 8 (AMP8). The contract starts immediately and will run for a seven-year initial term with an option for a five-year extension.
AMP8 will see the biggest investment in the water industry for decades. In 2023, Costain extended into AMP8 its Managed Service Provider contract with United Utilities and its consultancy work with Yorkshire Water. Costain has also won funding from Ofwat to support innovation projects.
Trading Update
Costain has had a positive trading year in 2023 and expects to deliver adjusted operating profit in line with market expectations. As a result, and reflecting an increase in financial income compared to 2022 and strong working capital management, together with the accumulation of GBP25.0m of positive working capital timings, Costain has ended 2023 with a net cash position of GBP164.4m (2022 year-end: GBP123.8m), significantly higher than market expectations of GBP128.6m.
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"We are also pleased to report that we have had a positive trading year and expect to deliver adjusted operating profit in line with market expectations. Our cash performance has been very strong, driven by continued improved operational performance, an increase in financial income compared to 2022, and ongoing positive working capital timings."
Costain will issue its results for the financial year 2023 on 12 March 2024.
Last year on 24th Jan there was the trading update. This year will be on 30th Jan for FY ending 31 Jan 2024. Preliminary results published for this FY on 17 April 24.
Hope for positive update - strong cruise business performance and turnaround in the insurance business. Think we have been through the worst and will start the SP rerating. Onwards and upwards!
My reasons why I continue to hold and still think we will see a substantial SP rerating in 2024. Looking for 100p plus in 2024.
1. If we compare Costain to industry peers it has a P/E Ratio of 7.9 whereas its industry sector average is 13.3. Nearly double. Keller 10.3 and Galliford even 23.
2. Fair value would equate to 1.18 which shows we are over 47% undervalued. Looking at future cash flow forecasts using DCF models.
3. Hope greater broker analysts coverage in 2024 which should give a more significant rerating.
Merry Christmas all. Agree as many are saying that after a frustrating couple of years being a capita long term shareholder watching the turnaround take place but SP not recovering, that we have build a solid foundation now and that we will see a significant increase in the SP in 2024 as the rerating begins.
'This company has £167m in cash yet its market value is just £157m'
Questor share tip: If it can get its margins even to 5pc it could look cheap indeed
https://www.telegraph.co.uk/money/investing/stocks-shares/costain-infrastructure-specialist-berkshire-cash/
Agree
Last year there was a pre-close trading update on 13th Dec.
Assume there will be one this year which is only a couple of weeks away. Expect it to be positive showing solid progress moving into 2024.
Look at consenus broker forecasts on Capita's website:
2023: £m Average High Low
Adjusted revenue 2,681 2,723 2,665
Adjusted EBITDA 214 220 203
Adjusted PBT 62 70 48
Reported free cash flow post lease payments*(98)(85)(106)
Net debt (post IFRS 16)(482)(434)(524)
2024: £m Average High Low
Adjusted revenue 2,775 2,862 2,743
Adjusted EBITDA 231 241 221
Adjusted PBT 80 91 59
Reported free cash flow post lease payments*(6) 15 (30)
Net debt (post IFRS 16)(476)(463)(512)
2025: £m Average High Low
Adjusted revenue 2,879 2,992 2,832
Adjusted EBITDA 249 257 236
Adjusted PBT 96 107 76
Reported free cash flow post lease payments* 22 37 3
Net debt (post IFRS 16)(455)(412)(499)
Broker forecasts 48p, 50p
Feel that in future we will hit those levels.
Current SP market cap of 322m GBP. Considering profit even taking average 62m this year, 80m 2024, 96m 2025.
Market capitalization is ridiculous. Can see massive rerating during next 12 months as we move towards 50p again.
AimMaster - this was always the plan and mentioned clearly in H1 results. After all the restructuring selling off the non core businesses they can review what they need and make restructuring and efficiency savings now. 60 million a year (originally targeted as 40 million) after initial one time upfront cost of such changes will drop onto the bottom line for every year thereafter.
As part of this mornings Capita plc (Capita) implementing significant cost reduction programme
In its Half Year Results, Capita outlined that its medium-term target to double its operating margin to 6% was underpinned by cost savings of £40m per annum on an annualised basis by the end of 2024. Based on an extensive organisational review, the Group will shortly commence employee consultation programmes which are expected to deliver cost savings of £60m on an annualised basis from Q1 2024. That is an extra 20m per year from what was stated at Half year results. Great to see this being accelerated now to provide an efficient lean organisation.
It stated
QUOTE
The group continues to trade in line with its expectations, delivering positive operational and financial performance and has won contracts with a total contract value (TCV) of £2.85bn year to date (2022 full year TCV: £2.59bn).
The Group will make a pre-close statement on 14 December 2023 and the Full Year Results announcement is planned for 6 March 2024.
UNQUOTE
Long suffering shareholders remember to attend if possible and at least in advance ask your questions. I have done this. Your chance to speak!
Interim Results Investor Q&A
Costain Group PLC ("Costain") announces that Alex Vaughan, CEO, and Helen Willis, CFO, will be hosting an investor Q&A session relating to the Interim Results via Investor Meet Company on 24 August 2023 at 10:00am BST.
The Q&A session is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9:00am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Costain via:
https://www.investormeetcompany.com/costain-group-plc/register-investor