Capita Share Discussion Threads

[pyglet] 06/10/2020 09:29

Schroders upping their holdings again

[owlbaby] 02/10/2020 13:56

If we what they have told the analysts at HE we may imagine what is in an II's calculation on valuing the chance of a dividend stream.



H1 20 - 6m Software People Customer Govt Tech Special Others CPI
Revenue £m 173 246 562 365 191 102 44 1,683
Op profit 38 18 42 14 15 (4) (159) (36)
22% 7% 7% 4% 8% -4% -2%
Notes A B C

A - includes ESS , big number at double digit margin number would come out if sold
B - head office - consultants party time!
C - result before about £20m finance & other non ops & then *exceptional costs

* As a guide Exceptional costs announced at YE 19 included:

Goodwill & intangibles (91) - have to guess a large part of this reoccurs say >75m
Business exits (69) - depends on disposals could be lower - say 30m?
Restructuring (159) - *this lot will blow 100m easily, target s/be <50m
(319)

* included w/off of old systems & irrecoverable cost on new system, inexcusable indulgence, why not change systems when profit is surplus IMO


My guess is an II would want the following to happen for share price recovery as we want

a) backfill for ESS,
b) new business wins(not just contract renewals)

but by far easiest & most effective of all

C) reduce HEAD OFFICE costs by 75% (& that is not operational site closure)


Lets hope announcing the ESS deal & figure pays off, it seems like they were played at this point - hope not.

Who of us would put another 70p in for extension of the plan? It hasn't worked IMO.

[aljm] 02/10/2020 11:48

let me guess, you just bought in , now you are trying to ramp it up ?

[baconlover] 02/10/2020 11:23

That is asking too much. I don't provide consultation. Only the results of extensive research.

Oink Oink xx

[aljm] 02/10/2020 11:20

wanna give a reason why ? or is that asking too much ?

[baconlover] 02/10/2020 10:56

As certain as death and taxis. CPI is on the rise. TP1-45p TP2-60p.

Good luck everyone.

Oink Oink xx

[dealy] 01/10/2020 14:28

the problem is that the majority of uk companies followed a ludicrous financial model in recent years which included: high levels of debt to improve return on equity, paying dividends despite Balance sheet weakness, relying on low fund immigrant workforce and under funding the pension fund.Result: companies needing to sell parts of their company to improve the balance sheet

[dealy] 01/10/2020 13:29

Good find. Probably explains the 2p drop since earlier this morning

[pyglet] 01/10/2020 13:27

Why would you want to be rid of it if it is so good

[mbaxter] 01/10/2020 13:08

Interesting. Had a scan for any news on how the ESS sale process is going and found the snippet below on the Education Investor site. I have always thought it a bit strange that Capita put out a price expectation to the market and tied it so closely to their debt reduction strategy. I took it as a sign that management were pretty confident that they had a deal in the bag (more fool me?, we'll know soon). Fantastic if it works out and they get what they signalled, but in this environment they are highly likely to get a good kicking if they underdeliver. The market is very fickle though, so who knows. We may get a relief rally if they get anything at all that makes a useful contribution...................

Exclusive: Private equity bidders pour cold water on price expectations for Capita ESS

Price expectations for a sale of Capita’s Education Software Solutions (ESS) unit have softened significantly after bidders baulked at bankers’ initial asking price of £500 million-plus, leading one to drop out, EducationInvestor Global can reveal.
Posted by: EducationInvestor, on 30/09/2020

[astubbs67602] 30/9/2020 21:41

It was released on their website on the 28th so not sure.....

[pyglet] 30/9/2020 20:31

Why no RNS

[captain kod] 30/9/2020 16:08

Another contract win, but no value mentioned yet.

Capita plc has secured a three-year contract with major port group, PD Ports Ltd (PD Ports), to implement a managed security operations centre (SOC) and security information and event management cyber security solution.

The Capita-managed SOC will support PD Ports’ entire IT infrastructure, including two data centres,13 ports as well as warehousing and container facilities along the east coast of the UK.

PD Ports employs over 1,200 people nationwide and its IT security team required a partner to monitor and evaluate its security 24/7, 365 days per year. To help PD Ports meet this requirement, Capita’s SOC analysts will work closely with the PD Ports team to effectively manage incidents to full resolution, ensuring that any issues are addressed quickly and appropriately upon discovery.

In the event of a security incident, Capita’s SOC analysts will directly engage with PD Ports’ team to identify the cause and implement a solution to resolve the problem.

During the early stages of implementation, Capita’s SOC analysts will collaborate with PD Ports’ IT security team to develop and refine the ‘alerting̵7; rules to minimise ‘false positives’ such as if an employee accidentally keys in a wrong password. This enables both teams to focus on identifying and mitigating real cyberthreats.

Mark Cook, executive officer of Capita’s Technology Solutions division, said: “Having the ability to continuously monitor and assess networks and assets is essential as cyber security threats are constantly evolving. We worked closely with the PD Ports team to deliver a technology solution that would not only meet their needs today but ensure that they are ready for the future.”

[dealy] 30/9/2020 14:56

call that terraced house in Sheffield and ask to speak to Investor Relations. Find out whats happening

[mbaxter] 30/9/2020 10:51

Interesting comment about the financing rumours by PeakyTraders_14. May be an indication of a Plan B for no sale or reduced sale price of ESS. Need to remember that Capita is a distressed seller and interested buyers are likely to try and squeeze them on the selling price. PE buyers in particular can be very hard nosed. If CPI get more than the indicated £500m, we are quids in. If they sell for a discount to the touted price, or don't sell, it may be tin hats time again. As ever, it is all a bit of a gamble but having finance in place will strengthen their position either way.

[dealy] 29/9/2020 19:17

This sweep up by Schroders last week of 5% of tge company is very significant. This will make it expensive for shorts to cover

[pyglet] 29/9/2020 16:28

Still blue

[aljm] 29/9/2020 14:23

something seems to have sparked it into life,

[dealy] 29/9/2020 14:19

Bit of life in the old dog this afternoon

[captain kod] 29/9/2020 09:28

Very funny! But you are right that's another saving - every penny counts!! ;-)

[dealy] 28/9/2020 16:42

don't forget they moved the registered office to somebody's 2 bed house in Sheffield so there is a saving!!

[aljm] 28/9/2020 15:59

Kod, was thinking exactly the same, more like shorts closing...

[captain kod] 28/9/2020 15:57

I think the opposite, each day we get closer to the sale confirmation which will be a massive boost to the share price. Plus confirmation that the Army recruitment contract is being extended to 2024 is coming early Dec.

[notimpressed] 28/9/2020 15:50

suspect shorts increasing.
sp will take a dive tomorrow