Capita Share Discussion Threads

[recut more] 14/12/2020 13:33

This is all good in my opinion, a low PE of 3.5 making them very cheap, the sale of ESS strengthens their balance sheet and reduces debt and they are going to be making further disposals. Plans in place, they know where they are going, all good for recovery, all good going forward. Profit taking expected

[dealy] 14/12/2020 12:32

they were in a weak position. maybe it's sub optimal to the tune of 50m but they saved that now in fees for a placing which would have been done at some shockingly bad price

[boadicea] 14/12/2020 12:19

Surprisingly little reaction to the disposal news. It must have been accurately discounted already although I found the actual deal mildly disappointing.
I also wonder why they couldn't have had it announced at 7am - which just adds to my worry about their organisational abilities.

[wi1l] 14/12/2020 10:42

Largish trade just gone through, maybe thats been holding things up?

[dealy] 14/12/2020 09:43

better than having to do a placing to reduce debt.

[aljm] 14/12/2020 09:27

cant buy any sensible amount without premium atm....

[hatfullofsky] 14/12/2020 09:24

£400m for a division generating FY19 PBT £52.7m is an incredible deal for the purchaser and stinks of a fire sale for the seller.

Still it is debt reducing

[aljm] 14/12/2020 09:02

Capita is in a much better position than it was Pre CV 19, long term , very interested where this is going

[aljm] 14/12/2020 08:47

give it a chance Dealy, really dont want a massive spike , would rather have smooth steady rise

[lyceeuk] 14/12/2020 08:43

Market not impressed???..the share price is rising😄€516;

[dealy] 14/12/2020 08:41

market not impressed. personally I think its sufficient to get the balance sheet in better shape so that the core business can flourish and get a normal valuation

[aljm] 14/12/2020 08:28

no problem :)

[dealy] 14/12/2020 08:27

sorry, found it now

[aljm] 14/12/2020 08:27

RNS released today

[dealy] 14/12/2020 08:25

where did you see this?

[aljm] 14/12/2020 08:15

imagine if you had taken their 'expert' advice to sell the other day , just saying.....

[aljm] 14/12/2020 08:13

Capita plc ('Capita') today announces that it has agreed to sell its Education
Software Solutions ('ESS') business to Tiger UK Bidco Limited, a newly formed
company established by funds advised by Montagu Private Equity ('Montagu'), in
a deal that values ESS at up to GBP400m.

[dealy] 11/12/2020 21:53

I don't think socks will tank on Monday if no deal is confirmed. We've pretty much had the correction this week on the small and mid caps. It's not like business us going to collapse or anything. Might be a non event for stocks from now on

[yellowstoneadvisory] 11/12/2020 16:37

If you missed the webinar yesterday here is a link to the recording

hxxps://youtu.be/5YEWLPDBBhA

and here is a link to the write up

hxxps://www.yellowstoneadvisory.com/post/capita-head-of-ir-stuart-morgan-updates-on-the-3-year-transformation-program

[owlbaby] 11/12/2020 13:52

The renewal of a contract may be baked into assumptions II's have about a business but this is one is particularly good news IMO. Nutter Lewis & the Board haven't turned away from this sort of business in their refocus and has continued to deliver at a high standard. They report improvement, that is brilliant in terms of CPI's traditional people based core. You can imagine the difference recruitment skill has with 60k + still employed directly by CPI.

The British Army had 78k regulars, 30k reserve according to wiki. You can imagine the range of roles, age profile, unique culture and duration of service. Recruitment is therefore fundamental to Army performance and something they have invested a lot in to get the most suitable people in roles. Its an ultimate in man management & CPI help them with it. I find this sort of skill the most impressive about CPI & how I find it hard to give up entirely on the nutters currently in charge.

Why don't they "refocusing" towards providing world leading standard in back office function starting with superb recruitment, career design & back office tech rather than "high value add" non repeat consultancy, digitalisation & one off tech?

[captain kod] 11/12/2020 12:21

11 December 2020

Capita plc

Capita secures Army recruitment contract extension

Capita plc ('Capita') today announces it has been awarded a contract extension
with the Ministry of Defence (MoD) to continue to deliver the recruitment
service for the British Army.

The two-year contract extension is worth GBP140m and will start in March 2022,
when the current 10-year contract was due to end. Under the original contract
the MoD had the option of extending Capita's contract, which the company has
now successfully secured.


Capita works in partnership with the Army as the Recruiting Partnering Project
(RPP) to attract, source and select officers and soldiers. Under the contract,
Capita will deliver technology and digital improvements to the recruiting
systems and processes, as well as continuing to provide the existing
recruitment services.

In particular, the software that underpins the end-to-end recruiting service
for Army personnel, the Defence Recruiting System, will be migrated onto the
Azure Cloud to provide a better candidate experience, faster response times and
enhanced functionality.

Other service improvements and technology advancements include investment in
robotic process automation, artificial intelligence, improved data and
analytics, and digital technology, including information chat bots and
digitalised medical records.

RPP successfully achieved 100% of the 2019/20 recruiting year target for
regular soldiers ready to train, and regular direct entry officers; at the same
time, reserves recruitment achieved 95% of the annual target, the best
performance since the contract began. Applications to join the Army are at a
five-year high and the conversion rate of people applying and beginning
training is up by a fifth from 2012.


Capita expects that maintaining these high levels of service performance over
the extension will ensure that the recent recovery in the contract's
profitability and cash flow is sustained.


Jon Lewis, Capita's chief executive officer, said: "We are delighted that the
British Army has chosen to extend our recruitment contract.

"This marks another important contract renewal for Capita this year, as we
continue to transform the business.

"The award of this extension is testament to the trust and strong, partnering
relationship we have with the Army and the Ministry of Defence, and to the
major turnaround of our service delivery.

"We look forward to building yet further on our partnership with the Army as
we continue to innovate and ensure that the service has access to the skills it
needs."

Lieutenant General Tyrone Urch, Commander Home Command, said: "Thanks to the
British

Army's strong partnership with Capita, applications to join the Army hit a
five-year high this year.

"The conversion rate of applicants to recruits is up by a fifth from 2012 and
we've achieved 100% of the target of soldiers being recruited, ready to train.

"We are committed to attracting a talented, bright and diverse cohort into the
Army, and we look forward to continuing to work with Capita to further
strengthen our excellent recruitment programme over the coming months."

Notes to editors:

The total IFRS 15 transaction price (order book) for the two-year contract
extension is GBP140m.

[dealy] 11/12/2020 11:28

this is a very difficult day. The Friday before No Deal Monday.

[captain kod] 11/12/2020 11:01

The days not over yet! Good news coming!! ;-)