Capita Share Discussion Threads

[pyglet] 27/8/2020 09:34

Why would anyone buy ESS. If it was that good wouldn't it have been snapped up by now? Surely anyone wanting to take on the school admin system might start again from the bottom up?

[dealy] 27/8/2020 07:44

all the software stocks went through the roof yesterday. ESM value rising every day and likely to be significant interest in purchasing the division. None of this is reflected in Capita share price

[owlbaby] 27/8/2020 07:27

data1

the core business of ESS is Capita Sims, acquired over 20 years ago & accounted through Capita Business Services - the biggest, generic vehicle used for any businesses without a reason (like regulation or purchase terms) to be held in their own entity. so assets of Sims, as was, aren't identifiable - presumably they would hive out from CBS what was needed. My guess there is no unamortised goodwill and little asset value compared to 500m - so proceeds will be close to profit number in the P&L. No corporate debt attached to CBS at YE 18, its all in the holding company where financial arrangements for group have been made.



questions in my mind is whether the forced premature announcement of sale process undermines the 500m figure & how the projected future value of CPI will be affected. Software was the only division with double digit op profit at HE20, a chunk of that must be ESS for it to fetch circa 500m. Y'd thnk share price wld increase for early realisation of whatever ESS was effectively priced in at but not by a clear 500m.

its back to the sad reality of when & how much the refocus will lift profitablity & how heavy HO/exceptional costs will be in the meantime

[z_man] 27/8/2020 06:11

Any news on when the sale will be recognised from the disposal of the ESS business? With yesterday's late boost I'm aiming for mid 30's by the end of this week with further gains once the sale has been completed reducing the total debt. Been in and out of this for a while but I'm now in and holding - For me its up from here but we all have our opinions.

[data1] 27/8/2020 06:10

how much debt goes with education software?
anyone got a breakdown of how its debt relates to assets?
they were talking about 500m for ESS
could one guess that the asset is worth a bit more than that and the debt is 500m upwards?
If google got hold of it they could milk it for cash like capita never could?

[aljm] 26/8/2020 16:23

possible decent buy going to show after close ?

[aljm] 26/8/2020 16:16

any reason for this push late in the day ?

[aljm] 26/8/2020 16:12

they have gained new , or had renewals on existing contracts this year already, something that the market , IMO has not really priced in,thinking CPI is in a better place than the market is representing.....

[dealy] 26/8/2020 15:49

The trick in this business is to win contracts and build volume. Capita has that already. The rest is just tweaks.

[aljm] 26/8/2020 14:14

the debt is going to get vastly reduced once the sale goes through, only upside from here IMO.

[porsche1945] 26/8/2020 13:00

2dealy
Thanks. This does seem cheap then, it has a lot of assets, can cut a lot of overheads, has a lot of contracts and may have more going forward, and gov type contracts usually fairly recession proof. I wonder if covid actually gives the company, like a lot others, the chance to really slash and burn (it employs too many people) at high speed, use more tech etc, I really do think this is a strong recovery play, 120-150 in 18 months....my only worry is private equity come in for it at distressed levels and buy it for peanuts, sell off a lot of valuable assets, and they end up the ones with big profits when they refloat it loaded with debt in a few years.

[aljm] 26/8/2020 12:08

time is the key here, it will go , but when ? the where the share price is now, has little if any resemblance to the value of CPI, once software Co. sale goes through this has to go way past 50-60p, hopefully then the market sentiment will not be on the floor.....

[dealy] 26/8/2020 11:43

must be lowest volume ever

[aljm] 25/8/2020 20:22

2.5 mill buys at 32p show after close.....

[dealy] 25/8/2020 16:16

net debt is 1 billion

[porsche1945] 25/8/2020 14:04

Are the total debts approx 4.5 billion?
What are the assets total??

[dealy] 25/8/2020 13:15

No Director share purchases after the results. Unusual. Could be because they are working on the disposals

[aljm] 25/8/2020 10:17

In theory, when all this CV19 BS is done with, then CPI should actually be in a better position than pre CV19, less debt, better organisation, this could be one of the great recoveries, 150p is pre CV19 and bad debt, where will we end after this has all gone ? 150p has to be the minimum ?

[hodhasharon] 24/8/2020 16:30

Not as huge as the assets about to be disposed of.

[pal44] 24/8/2020 16:26

but what debt is this Co carrying its quite huge ..

[dealy] 24/8/2020 10:07

there also haven't been any major holdings changes in recent weeks.

[hodhasharon] 24/8/2020 09:57

Only upside from here.