Capita Share Discussion Threads

[sbb1x] 06/3/2020 08:46

Another 10% to go

[owlbaby] 05/3/2020 23:09

To pick the mid year message "recovery on track" shows they don't know what to expect and will guess. "Too early to tell" would have been more prudent & bought time to try to find out.

[owlbaby] 05/3/2020 23:02

Agree, the CEO talks about "fix" meaning replacing experience of once reliable delivery of financial performance in a quest for technology based concept conceived by external consultants which he can not guess the feasibility or cost of.

[lowtrawler] 05/3/2020 21:52

This will be my last post on this thread as I don't think I have anything else of value to offer. Had I got this information from just 1 or 2 of my Capita contacts, I would have considered it sour grapes. However, I have now had the same message from 5 different contacts, none of whom are in touch with each other.

I used to work as a senior manager in a business which went through a similar restructuring and made similar mistakes. They were the number 1 business in their market and highly profitable. Within 10 years, they went bust. The number 2 business is now dominant.

[lowtrawler] 05/3/2020 21:35

Some of the middle management I refer to are actually the people on the ground interfacing with the customer for requirements and agreeing deliverables. What has been explained to me is that the incoming resource don't understand the packages they are delivering and don't understand the client businesses to determine suitable solutions. This is frustrating the clients and causing them to look elsewhere.

[captain_kurt] 05/3/2020 21:28

It seems they have cut experienced staff on the ground. Too many middle management layers delivering zero revenue.

[escapetohome] 05/3/2020 21:26

This is just the norm in local authority service / construction contracts.

The old grey hairs disappear in a “” RESTRUCTURE”” ahem ahem.

In come very young europeans, some of whom are actually quite good.

[lowtrawler] 05/3/2020 21:20

I know a number of middle management who have left Capita over the past 2 years. They have a fairly consistent message. Capita are putting in senior managers with little to no knowledge of the business and they are bringing in fresh faces with little to no experience at lower salary rates. The experienced managers are leaving to the competitors.

This is a particular problem for Capita because a lot of their business is relationship led and the relationship is with the managers that now work with competitors. Those individuals also know what Capita has been charging and so are able to match or undercut the Capita price.

It will take a number of years for the full impact to be felt because it will take years for customers to move away from the Capita platforms. However, the restructuring is effectively hammering a nail into the coffin of Capita rather than leading to future improvements.

In my view, it is now too late for Capita to turn this around and so there will be a slow decline to insolvency over the next few years.

[thomstar] 05/3/2020 16:18

In it for the dcb, all those lost tv license fee collection commissions....

[diku] 05/3/2020 16:11

Wasn't this held by Woodford?...

[blueball] 05/3/2020 14:52

Looking to invest here @40/45p.

[sbb1x] 05/3/2020 14:29

A falling knife turn into... falling knives.... 60p

[owlbaby] 05/3/2020 13:13

yea, who knows tho? Not this management seemingly & certainly not dreaming a market proposition that doesn't emerge from the painstaking iterative development of something that is already being done well. Isn't that right? My confidence in the transformation has taken a knock if the once metronomic delivery of financial well managed performance from unglamorous administrative tasks isn't revived or 35p might be right!

[volsung] 05/3/2020 11:15

Might be worth a punt at 80p

[owlbaby] 05/3/2020 10:21

It seems the disappointing results were leaked early & it is anyone's guess how much it is worth now with the ominous messages 2 years in to the transformation program "having to invest more than initially thought" so "progress not yet evidenced in financial performance". The aim to be a leader in digital transformation is sounds like a recommendation out of any management consultant's dream report rather than building on existing.

[pal44] 05/3/2020 09:09

waiting for 35p to buys some ..

[hawaly] 27/2/2020 07:14

Throw any ideas about rationality out the window - the market is in asset writedown mode.

This is likely to continue until a treatment to inoculate against the Coronavirus emerges.

GLA 😎

[owlbaby] 26/2/2020 12:49

ooo...maybe!

Not sure of the direction is rational so maybe they are selling all or some of it. Seems nuts, it should be viable as a business, the technology led service objective of the restructure isn't economic as one of the brokers said (UBS or Deutsche?) but wouldn't you think the P&L ought to be profitable enough now past (ineffective) development costs of technology led service propositions have been written out if sensible/good "non core" activities aren't been sold off now.

[hawaly] 26/2/2020 11:06

Maybe its something else ......

[owlbaby] 26/2/2020 10:47

Does the recent drop in share price suggest that word has got out somehow that results will be disappointing?

[essentialinvestor] 30/1/2020 18:33

Well, there was a time not too long ago that may have been possible,
but they look to be getting some sort of grip on the business.
This is a key transitional year for CPI in terms of recovery towards 2021 potential growth. No position atm and I would not completely rule out a disappointment, let see.

[pal44] 30/1/2020 18:24

My long target was 35p still waiting

[pyglet] 21/1/2020 11:08

UBS have a new target of 140p. Goldman Sachs day 240p. WTF! Do they really know??

[harry3021] 20/1/2020 17:31

is the next trading update 05 March 2020 or earlier?

[nw99] 16/1/2020 08:14

Interesting stock upgrade from GS presume will be beneficiary of govt spending increases in the budget