Capita Share Discussion Threads

[hyden] 15/2/2013 21:27

Yes, it's breached the 3yr high set in 2010 and is very close to all time highs set in 2007.

[darias] 15/2/2013 19:42

Looks interesting.

[bigbigdave] 13/2/2013 17:12

Multi year breakout I see.

[northernlass] 09/8/2012 21:58

Brokers Turn Bullish On Capita

BROKERS TURN BULLISH ON CAPITA GROUP

26 July 2012

JP MORGAN CAZENOVE reiterates its Overweight rating for Capita Group with a target price of 875p.

CREDIT SUISSE reiterates its Outperform rating for Capita Group with a target price of 830p.

27 July 2012

UBS retains its BUY recommendation for Capita Group and raises its target price from 740p to 800p.

03 August 2012

Morgan Stanley reiterates its Overweight rating for Capita Group with a target price of 760p.



P.S.
Here's some links about SCLP, one of the hottest stocks at the moment:

[northernlass] 09/8/2012 21:53

Contract Wins Boost Capita

CONTRACT WINS BOOST CAPITA GROUP

Capita, the UK's largest outsourcing group by market capitalisation, benefited from a steady stream of government contracts and a "buoyant" outsourcing market to report a modest rise in pre-tax profits in its half-year results.

Profits before tax edged up 1.6 per cent to £143.8m on revenues that grew 15 per cent to £1.6bn. Although organic revenues were flat, the top line was boosted by a spate of acquisitions. Capita has spent £129m on acquisitions so far this year, after spending £642m in the two years up to the end of 2011.

The group secured £1.3bn of new contracts in the six months to the end of June, which it said was a record for the first half, including one managing the recruitment process for the army at the Ministry of Defence.

But the combination of big-ticket contract wins and the spate of recent acquisitions put pressure on the group's underlying operating margins, which fell 30 basis points to 13.5 per cent.

Capita said the outsourcing market was "buoyant", despite the sector coming under criticism following G4S's Olympics debacle.

Capita surprised the market with an equity placement in April, which raised approximately £271m net of expenses, to fund the group's acquisition spree. Mr Pindar defended the decision, citing the support of major shareholders and Capita's previous record of returning cash to investors.

"Over the last decade – bear in mind our market cap is £4.5bn – we have returned £1.5bn in cash to our shareholders, through dividends and buybacks," said Mr Pindar. "That sounds like a company that is generating returns for shareholders."

The group announced an interim dividend of 7.9p, up 10 per cent from the previous year. Diluted earnings per share at the group rose 4.7 per cent to 18.6p.

Read the complete article here:

[apad] 13/7/2012 17:15

Oops.
Sunshine home for the terminally confused here I come.
Sorry folks.
apad

[apad] 13/7/2012 17:14

GNK debt is high and it is symptomatic both of GNK and of the industry. THe debt is mostly long term, e.g. mortgaged property.
apad

[philo124] 12/7/2012 20:11

Good point, quite high and i don't like debt but they should be generating plenty of cash, will have a look.

[essentialinvestor] 12/7/2012 19:35

What's your view on their net debt PHIL?.

[philo124] 12/7/2012 19:11

Anybody else back in?

[philo124] 22/5/2012 10:41

Bought back in today having sold at 717p short time ago; SIPP, forward p/e 11.1
forward yield 4.2%.

[megabear] 24/4/2012 12:01

News wires suggesting pricing will be at 680-685p.

[25babies] 24/4/2012 10:09

In the Appendix - it is a bidding process that I am unclear whether the ordinary punter can take part.

Participation in, and principal terms of, the Placing

Participation in the Placing will only be available to persons who may lawfully be, and are, invited to participate by the Joint Bookrunners. The Joint Bookrunners and their affiliates are entitled to enter bids in the Bookbuild as principals.
The Bookbuild will establish a single price payable to the Joint Bookrunners by all Placees whose bids are successful (the ''Placing Price''). The Placing Price and the number of Placing Shares will be agreed between the Joint Bookrunners and the Company following completion of the Bookbuild. The Sale Shares will be sold for the same value as the Placing Price. The Placing Price and the number of Placing Shares will be announced on a Regulatory Information Service (''RIS'') following the completion of the Bookbuild (the ''Pricing Announcement'').
To bid in the Bookbuild, prospective Placees should communicate their bid by telephone to their usual sales contact at the relevant Joint Bookrunner. Each bid should state the number of Placing Shares which the prospective Placee wishes to acquire at either the Placing Price which is ultimately established by the Company and the Joint Bookrunners or at prices up to a price limit specified in its bid. Bids may be scaled down by the Joint Bookrunners on the basis referred to in paragraph 7 below. A bid in the Bookbuild will be made on the terms and subject to the conditions in this announcement and will be legally binding on the prospective Placee on behalf of which it is made and except with the Joint Bookrunners' consent will not be capable of variation or revocation after the time at which it is submitted. Each Placee will have an immediate, separate, irrevocable and binding obligation, owed to the relevant Joint Bookrunners, to pay it (or as it may direct) in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares such Placee has agreed to acquire and the Company has agreed to allot. Each Placee's obligations will be owed to the relevant Joint Bookrunner.
The Bookbuild is expected to close no later than 5:00p.m. (GMT) on 24 April 2012 but may be closed earlier or later at the sole discretion of the Joint Bookrunners. The Company and the Joint Bookrunners reserve the right to reduce or seek to increase the amount to be raised pursuant to the Placing, in their absolute discretion.
Each prospective Placee's allocation will be confirmed to such Placee orally by one of the Joint Bookrunners following the close of the Placing, and a trade confirmation will be dispatched thereafter. All obligations under the Bookbuild and Placing will be subject to fulfilment of the conditions referred to below under ''Conditions of the Placing'' and to the Placing not being terminated on the basis referred to below under ''Right to terminate under the Placing Agreement''.
Subject to paragraphs 4 and 5 above, the Joint Bookrunners may choose to accept bids, either in whole or in part, on the basis of allocations determined at their discretion and may scale down any bids for this purpose on such basis as they may determine. The Joint Bookrunners may also, notwithstanding paragraphs 4 and 5 above (i) allocate Placing Shares after the time of any initial allocation to any person submitting a bid after that time and (ii) allocate Placing Shares after the Bookbuild has closed to any person submitting a bid after that time.
Irrespective of the time at which a Placee's allocation is confirmed, settlement for all Placing Shares to be acquired pursuant to the Placing will be required to be made at the same time, on the basis explained below under ''Registration and Settlement''.
To the fullest extent permissible by law, neither of the Joint Bookrunners nor any of their respective affiliates shall have any liability to Placees or purchasers of Sale Shares (or to any other person whether acting on behalf of a Placee or otherwise). In particular, neither of the Joint Bookrunners nor any of their respective affiliates shall have any liability (including to the extent permissible by law, any fiduciary duties) in respect of the Joint Bookrunners' conduct of the Bookbuild or of such alternative method of effecting the Placing as the Joint Bookrunners and the Company may determine.

[25babies] 24/4/2012 09:50

Also looking for placing price - where is it?

[apad] 24/4/2012 09:36

Trouble is it's priced as a growth share, not a build a business by acquisition share.
I'm holding a small amount but, having missed the 625 dip, am not looking to increase.
I couldn't find the placing price on the announcement, but the price will be managed until a decent time after the placing and I expect a drift down afterwards.
The information that would change my mind on this share is if the acquisition is overseas.
apad

[paddyfool] 24/4/2012 09:20

I think they have their eyes on a major acquisition, there organic growth isn't great, they are looking for a game changer, I suspect the next acquisition will be north of £200 million.

[apad] 24/4/2012 08:34

Growth by acquisition - buy back shares - issue more shares.
Too much financial engineering perhaps?
apad

[trickyboyfish] 24/4/2012 07:29

And a sneaky director sell too.

Paul Pindar, Chief Executive of the Company is selling 400,000 Ordinary Shares alongside the Placing to satisfy a personal settlement. He will have a residual holding of around 1.3m shares following the sale and has no intention to sell any further shares in the near term.

[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.