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CPI Capita Plc

13.30
-0.18 (-1.34%)
Last Updated: 15:45:54
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Capita Plc LSE:CPI London Ordinary Share GB00B23K0M20 ORD 2 1/15P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.18 -1.34% 13.30 13.26 13.30 13.96 13.20 13.46 7,436,666 15:45:54
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Business Services, Nec 2.81B -178.1M -0.1047 -1.28 229.33M
Capita Plc is listed in the Business Services sector of the London Stock Exchange with ticker CPI. The last closing price for Capita was 13.48p. Over the last year, Capita shares have traded in a share price range of 12.42p to 23.00p.

Capita currently has 1,701,273,523 shares in issue. The market capitalisation of Capita is £229.33 million. Capita has a price to earnings ratio (PE ratio) of -1.28.

Capita Share Discussion Threads

Showing 10751 to 10775 of 16700 messages
Chat Pages: Latest  440  439  438  437  436  435  434  433  432  431  430  429  Older
DateSubjectAuthorDiscuss
29/9/2022
12:13
Come on PE and buy this and put us all out of misery!!
psheeran1
29/9/2022
12:08
The govt departments are being raised with saving money due to the budget perhaps this is why Capita is being impacted on fear of tightening of future contracts... Or Hurricane Ian!!!
fewdollarsmore
29/9/2022
11:18
Negative sentiment over Govt. contracts likely,maybe someone can shed some more light on their true exposure.
bookbroker
29/9/2022
11:14
I'm not seeing why this is falling. It's got virtually no interest bearing debt now. Interest rate volatility will affect pensions and insurers but why should CPI get dragged into the market falls? The government is coming out with all sorts of interventions (e.g. energy price caps) which will likely need managing by outsourcing companies. It's not particualrly exposed to consumers spending. Why is it not going up as a safe haven?
aleman
29/9/2022
10:48
Getting a bit silly now.. my test lows again
fewdollarsmore
28/9/2022
12:49
5m traded this morning. We've been here many times in the last 6 months. When the market throws one, sellers appear in volume and the shares fall. When it goes quiet, there's steady value buying. It should hopefully recover the 200-day fairly quickly now as it's only at 26.8p - if and when the market calms down.
aleman
28/9/2022
10:20
Nice timing!! Sub 25p looking like a bargain.
davidbennett
28/9/2022
09:41
Just bought a few....not held for a while but could be a nice bounce back trade
gozo
28/9/2022
07:30
awful markets. This was 29p last week
dealy
27/9/2022
07:49
Https://m.marketscreener.com/quote/stock/WSP-GLOBAL-INC-1410197/news/WSP-Completes-Acquisition-of-Capita-REI-and-GL-Hearn-Businesses-from-Capita-Plc-41861029/
dipa11
27/9/2022
07:45
They will still need to employ outsourcers in this country, large employers here as well as abroad. Likely more work if they are growing the state.
bookbroker
27/9/2022
07:35
Am a conservative Voter by nature. But seriously thinking labour is the better alternative now.Labour traditionally would grow the state and reduce outsourcing. Any views on effect labour in power would have in CPI?
feelthepain
27/9/2022
07:08
Quiet so far ....
aleman
26/9/2022
16:42
Over 3m shares reported traded after 4:20. - about half the days' volume.
aleman
26/9/2022
16:09
Looks like the 50-day will be above the 200-day tomorrow if the shares don't fall significantly?
aleman
26/9/2022
12:40
Older news but worth it. Https://www.proactiveinvestors.co.uk/companies/news/928218/capita-refutes-media-reports-on-cvc-capital-partners-takeover-proposal-928218.html
dipa11
26/9/2022
08:00
Should attract a bid from PE soon
gripfit
26/9/2022
07:14
Curious price action first thing but trying to climb back already.
aleman
23/9/2022
09:47
free stock charts from uk.advfn.com
aleman
23/9/2022
09:42
Up nearly 4p in a week when SMX is down 3% and MCX down nearly 4% is good going. I'll do comparatives since it hit bottom shortly.
aleman
23/9/2022
07:51
Could this be the day?
davidbennett
22/9/2022
18:14
Lengthy but a good summary.

Capita plc: On track to deliver on 2022 commitments

Capita is a consulting, transformation and digital services business listed on the premium segment of the London Stock Exchange. The company is a constituent of the FTSE All Share index and has a market capitalisation of approximately £500m.

Half year results to 30th June 2022 were published on 5th August and we were delighted to have Stuart Morgan, Director of Investor Relations, present and talk about the company’s prospects. A recording of the webinar is available here.

Stuart opened with a summary of the first half performance and the key message that they are on track to deliver on their 2022 commitments. The highlights of H1 were: further revenue growth after the first revenue growth for 6 years in 2022; strong operational performance (a key component of the transformation); an improvement in net promoter scores which has aided recruitment and retention of people; profit growth; delivery of positive free cash flow and a significant reduction in net debt.

Moving into more detail of the financial results the revenue number increased slightly to £1,480.1m as contract losses from 2021 started to expire and there was progress growing the business. Profits grew to £52.2m through a combination of increased revenues and some efficiency benefits and the company delivered positive free cash flow of £12.7m. Net debt on a pre IFRS basis reduced by £142.1m to £289.3m and on a post IFRS basis reduced by £170m.

Looking in more detail at the movements in revenue there were some covid related contract losses and reduction in scope of work but these were more than offset by the £55m of contract wins. Notable contributions were the Royall Navy, Job Entry scheme in Scotland and the Northern Ireland Educational Authority.

At the divisional level the Capita Public Services division continues to grow both revenues and margins. The Experiences division fell slightly but the performance was a big improvement on the 9% revenue decline in the prior year. The profit decline in Experiences reflects that revenue decline. The portfolio division had a good half mainly as a result of recovering from the impacts of Covid. The plc benefit was significant as restructuring costs have substantially reduced as the restructuring comes to an end and these costs are now taken above the line.

The reported profit before tax reflects lower profits on business disposals and a goodwill impairment charge. Management are particularly pleased that the company generated positive free cash flow of £12.7m and they are determined to improve on this. Operating cash flow conversion improved to 64% and they believe this can go further, there was a significant decline in the pensions contribution and further business sales all contributed to a £170m reduction in net debt.

The balance sheet is in a significantly better position too. The RCF of £358.1m is undrawn, £82m of private placement notes were repaid in the first half and a further £140m will be repaid in the second half leaving the company with a much reduced leverage position.

In terms of the financial outlook for the rest of the year the company sees revenue growth trends improving in each of the divisions, EBITDA margin will fall slightly this year, positive free cash flow is targeted for the full year and net debt will continue to decrease. The size of the overall net debt position at the year end will depend on the timing of disposal proceeds. Whilst the sales process for all remaining businesses to be sold will have launched in the second half some of the proceeds may not be received until 2023. However, by the time of the half year results Capita expect net debt to be non-existent or negligible.

ESG remains at the heart of what they do and Stuart referenced 4 key components: there is now a board oversight committee, the staff Net Promoter score has improved significantly, they have maintained the real living wage commitment and net zero strategy is being implemented at the divisional level.

Diving into the revenue performance in more detail there has been a pleasing performance in work won which grew by 4% to £1.6bn (excluding the lumpy Royal Navy contract). The renewals rate is a very respectable 95% and the win rate on new business is 42%. With the pipeline of new business opportunities standing at £14.4bn Capita is well placed for further revenue growth. This pipeline combines renewals, new scope of work and new clients. Notable wins include TV Licencing, Scottish Power, Allianz Partners and there are good opportunities in the second half from o2/Virgin, TfL and the Student Loan Company.

The new operating model has also led to a focus on winning business from clients where Capita has deep expertise. The approach is to use consulting skills to demonstrate capabilities and credibility to drive business by providing client solutions using a range of Capita products. The sales team is also working to drive incremental sales from existing accounts and more smaller deals.

Capita’s Digital expertise has also played a role in winning new business. This includes things like automation, cloud migration, AI and data analytics. In the Public division they are leveraging the technology stack using global suppliers. The Experience division already has a competitive platform and they are working to deliver this more effectively. An example of this in the Public Services Division is working with HMRC where they have become their automation partner. In the Experience division Capita has helped a consumer electronics company deliver on a number of operational KPI’s and they are doing this with 98% of the staff all working from home. This WFH approach is hoped to be rolled out for other clients going forward.

Improving margins remains a key target for the company and whilst margins are expected to decline slightly in the current year the company sees significant margin improvement going forward. This margin improvement will come from the successful execution of major contracts, a disciplined approach to contract bidding, a focus on continuous improvement, more use of standardised tools, reducing the property footprint and cutting the central overhead. Reducing the property footprint both saves costs and reduces the overall net debt. Property footprint has been cut by 25% over the last 2 years, there were 18 disposals in the first half and a further 9 buildings will be vacated in the second half. Overall property costs are expected to decline by a further 20% by the end of 2023.

A slide addressing inflation indicated the company doesn’t expect a material impact in 2022 mainly due to the timing of inflation increases. Government contracts are rebased in April based on H2 2021 indexation. Capita is confident they can manage the inflation risk as 2/3 of their contracts have indexation built in, a lot of Capita business is transactional and here the rate card is updated regularly and they are involved in regular discussions with clients about how services/staff retention can be improved with price increases.

Looking specifically at how the company has manged a tight labour market they have made efforts to make Capita a more attractive place to work through the use of WFH flexibility where appropriate and this has delivered significant improvements in their staff net promoter score. The company has staff to deliver the existing contracts but if anything needs more people to help grow the top line.

There was a very encouraging update on the disposals in the portfolio division and the process for selling all businesses is expected to be launched by the end of 2022. Some of these disposals will close in the current year and some will come through in 2023. When this completes the company will be left with no or negligible financial debt. As part of the process, they have agreed with the Pension trustees to pay early some of the £45m annual pension payments scheduled for 2024-2026. At the next triennial review these pensions could be in surplus and no further outer year payments will be required further increasing the free cash flow.

In summary, the first half performance was in line with expectations. The new operating model is embedded in Capita which places the company in a strong position to grow the business from a pipeline of better-quality contracts. There are further opportunities to take costs out which will flow through into margins and with the disposal of the remaining businesses in the portfolio division the company will be substantially debt free. In response to a question about a return to the dividend list, Stuart commented that when core Capita is generating positive free cash flow then returns to shareholders will be considered. A possibility for 2023 but more likely for 2024.

All in all, an encouraging update delivered in a more confident tone.

pinemartin9
22/9/2022
17:04
Relative Strength (%)
1m, +18.4%
3m, +20.2%
6m, +46.3%
1y, -39.1%

The 1 Year Relative Strength measures a stock's price change over the last year relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe.

pinemartin9
22/9/2022
16:26
-MA (50) 26.88-MA (200) 27.58RSI (14) Neutral Good evening and good luck
dipa11
22/9/2022
15:10
That should be pre-IFRS debt down from £289m to £220m now with about £175m to squeeze in before year-end, resulting in debt of only about £45m for the year-end accounts and with some lease reductions thrown in to boot which will also bring post-IFRS 16 numbers down. That ignores positive free cashflow expected, too. Capita will become investable again for mainstream funds when these numbers are digested. All we need now is a bonus of some nice new orders announced and these should fly. (There were going to be some advance pensions payments with disposals that could mean that the debt falls a little slower than these figures but they give an idea of the general magnitude of fall to be expected.)
aleman
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