Capita Share Discussion Threads

[paddyfool] 24/4/2012 07:07

Hmm looks like they are on the acquisition trail again, I think that they may have some big UK outsourcers in their sights.

[tday] 09/3/2012 18:50

First of all, I'm not long or short of Capita.

However the acquisition of ALS last November - admittedly small beer - is looking grim.

ALS has tried to screw translators and interpreters, not just on their hourly rates, but travel costs to such an extent that ALS can't get the well qualified people to work for them. The result is ALS is having to almost drag people off the street, to act as interpreters in Court cases and jumbo blunders are being made. (Later on I'll post the website where are listed the blunders that run into hundreds - some are barely believable!). Instead of saving the MoJ money, this contract is going to cost a fortune. Who will pay?

Financially Capita could take an accounting hit, but its reputation will be damaged.

Of course ALS maintain that things are/will be sorted out in a week or so, but they are telling porkies. Just look at the website - details to follow soon.

Heaven knows what will happen when the Olympics start!

[pictureframe] 02/3/2012 11:06

Just as I thought - next two on the retrace list RR. & BNZL

[tim 3] 01/3/2012 14:33

Am holding for the time being as this is one of my long term holds.

[thamestrader] 01/3/2012 11:09

I sold.
March is always my worst month, so having had a gret run up, this is a good one to lock in to cash for a few weeks.

[pictureframe] 01/3/2012 11:05

Way overbought imo - retrace in the next few day imo

[brain smiley] 24/2/2012 10:59

Fri Feb 24, 2012 10:01am GMT

Shares in Capita rise 3.1 percent, topping the list of FTSE 100 gainers and extending Thursday's post-results advance, as Oriel Securities raises its rating on the firm to "hold" from "reduce", while Deutsche Bank and Barclays Capital both lift target prices for the outsourcing group.

"Currently, on balance, we see the scale of the bid pipeline as having the potential to yield sufficient flow of wins to more than mitigate the gnawing concerns," Oriel Securities says in a note.

"We know the balance sheet is extended, cash conversion is poor and cash conversion will be poor again this year. We know the bid pipeline has been replenished," the broker says.

Deutsche Bank says: "Recent contract wins have reduced near term downside risk and the company has a postive central government outlook. As such, we will now see exactly the market appetite to buy in to the much hoped for government outsourcing story."

"Our fundamental view remains that returns in UK outsourcing (public sector and life and pensions) are being pressured and that Capita is most likely a fundamental buy when the model can internationalise," Deutsche says, keeping its "hold" rating on Capita and raising its target price to 658 pence from 619 pence.

Barcap raises its target price for Capita to 725 pence from 680 and retains an "equal-weight" stance on the stock.

[thamestrader] 24/2/2012 09:41

There could be some positive press coverage at the weekend, leading to a further uplift early next week.

[apad] 23/2/2012 12:12

Bloody irritating i was going to add on the post-results dip and it's up 10% in 2 days.
Have a lot of shorters been caught I wonder?
apad

[brain smiley] 23/2/2012 11:09

Shares in Capita, which raised its full-year dividend by 7 percent to 21.4 pence, were up 2.6 percent to 706.75 pence at 0946 GMT.

"The tone of outlook is positive, the pipeline has been rapidly replenished, the contract win rate so far this year is good and the operating margin is higher than expected," JP Morgan Cazenove analysts wrote, adding that they expected Capita to rise on the back of it.

Pindar said he was "quietly confident" of hitting a city consensus of 3 percent organic growth in 2012 and added that it was more likely to return to it in the second half.

The consensus for overall revenue growth for 2012 is forecast at 12 percent, according to the firm

[brain smiley] 23/2/2012 11:08

Investec said:


Full year results for 2011 came in in line with expectations, with the benefits of acquisitions more than offsetting the organic decline in revenues. Behind the headlines, margins improved slightly, but cash conversion deteriorated. The shares de-rated in 2011 on the back of a slower market background, but the group has had a good run of contract wins recently. The group still has quite a bit to prove, but the better start to this year encourages us to maintain our hold recommendation.

But Robin Speakman at Shore Capital was less enthusiastic, repeating his sell recommendation:


The outlook statement for the current year is positive, as expected, with the impact of recent and expected future contract wins said to be leading underlying growth higher. We still note that margins are likely to have peaked last year and continue to see risk here as well as in revenues. Capita confirms that despite recent contract wins and disappointments the pipeline stands at around £4.6bn compared to £4.7bn last year. We remain cautious.

[tim 3] 23/2/2012 10:14

Nice rise,they seem to like the results and the civil service contract news.
Nice dvi increase to.

[alter ego] 23/12/2011 09:48

interesting acquisition today. Another listed company, RWS, offer services that overlap and appear to be doing rather well.

[brain smiley] 18/11/2011 14:17

Hyden

Possibly

[hyden] 18/11/2011 14:06

I'd suggest the reason Capita dived a few days ago was the Resolution tie up with TCS. Now puts them the No. UK employer and completely transforms their outsourcing business. A serious competitor for Capita going forwards, it seems. However, I think the market reaction is overdone on today's news. Still holding but not inclined to add at this stage.

[brain smiley] 18/11/2011 13:04

That's why Capita dived from 695 to 660 a few days ago - it was known this was coming.

[thamestrader] 18/11/2011 08:37

Well put, bbd.
I do have a small position (even smaller now), which, having stood up well during the early stages of the recent turmoil, has lost 100p/share in November.

[bigbigdave] 18/11/2011 08:02

This word 'reasonable' everywhere.
Sounds like a smoothed over profit warning.
No position of course.

[hyden] 29/7/2011 18:04

Very pleased with CPI given the state of the markets. Hopefully the start of a re-rating as Morgan Stanley suggests. :-)

[brain smiley] 29/7/2011 16:02

Capita was amongst the risers as Morgan Stanley upped its rating on the support services giant to "overweight" from "underweight" in a review of the outsourcing sector.

"Our cautious view had been predicated primarily on concerns over timing," said analysts. "We thought the market would be disappointed at the time it would take to see outsourcing activity pick up, particularly in the public sector. We now think this has played out. Throughout the last 12 months, listed players have reported that organic revenue growth has been weaker than they had expected, and the stocks have de-rated accordingly."

The broker believes there is now evidence of improving top-line growth and that this should feed into growing contract pipelines for the outsourcers over the next six to 12 months. Capita ticked up 1.4pc while its peer, Serco, slipped 3 to 541p as Morgan Stanley retained its "equal-weight" rating. Serco, which runs services such as the Docklands Light Railway, announced that it has signed a new prison management contract in Australia.

[hyden] 21/7/2011 21:21

Bought in this morning. Am hoping the market has mis-priced the news and we will see a steady increase in the share price from here. The increase in volume lends support to that view.

[essentialinvestor] 21/7/2011 11:05

Had to look twice when I saw the share price this morning,
the market read this incorrectly imv.

[smimon] 21/7/2011 10:58

Looks like it's recovering a bit now