Capita Share Discussion Threads

[jsg123] 12/7/2024 12:12

PFC lol not comparable
Breached covenants, d4e incoming, valid reasons for 12p
This now essentially debt free with incoming 207 million, different beast all together.

[heatseek77] 12/7/2024 11:55

need to hold above 19.70p as those 2 highest points of rise since Tuesday so far so good ...

[denholm elliott] 12/7/2024 11:53

Who got spiked? Tiny margins like PFC, and look where that is. Double bottom at 13p is likely.

[heatseek77] 12/7/2024 11:48

TT think 20p hold is important but even if we see a drop to 18p not the end of the world, didnt mind slow and sure, recently for capita its been fast and sure !

[henrycns] 12/7/2024 11:42

15.4p buy set

[ttny2004] 12/7/2024 11:40

I think move was an obvious move quickly up to 22p intra day early on.Important point is will 20p be held.This is what's being tested now.If it holds barring anything unexpected a strong move up on next leg up IMHO.

[ashwani01] 12/7/2024 11:26

Political environment favourable. Actions taken good. Trend seems clear. Just need some patience. Barring any catastrophes......

[ashwani01] 12/7/2024 11:20

I think a 20% pullback to 16p is unlikely though you have to expect some profit- taking. At 30% of my portfolio now, I wouldn't use any pullback to top up further though I certainly would have if my holding was smaller.

[henrycns] 12/7/2024 10:15

Like I said. Buy at 16p on the pullback.

[tanners] 12/7/2024 10:13

kingston78......that might be what traders like to publicise, but the stark reality is that the vast majority lose money because no one can accurately predict the lows and highs of fast moving shares.

A bit like those who claim to buy the dips - absolute nonsense as a dip is only a dip after it has happened so unless you're lucky enough to have a broker who lets you trade retrospectively then it's impossible.

And if anyone does have such a broker, I'll pay good money for their number.....

[blackhorse23] 12/7/2024 10:09

Going to red zone territory

[kingston78] 12/7/2024 10:02

Traders scalp a small profit. That's their way of life, making some money without any potential downside as they have closed their position. However, investors stay for the longer ride for much bigger profit.

[heatseek77] 12/7/2024 09:38

So this is the point were the traders say they are staying and bailed at 22p then 🤔🤔🤔

[jubberjim] 12/7/2024 09:25

Looks familiar

will leave a few mopping up bids bit lower cos you never know your luck

Unlikely but stranger things have happened

[sr2day] 12/7/2024 09:24

Holders need to hold tight. 1/2p retracement is part of the course.the next piece of good news will catapult the share price a lot further.

[gripfit] 12/7/2024 09:04

I suspect the short positions will have to close pronto

[kingston78] 12/7/2024 08:54

Oldtimer, I entirely agree with you. A new CEO is always energetic and looking in from the outside. Repaying a large chuck of debt by a big disposal is the right decision, getting 10 years worth of cash flow upfront. There must be more disposals (smaller ones) which together, will wipe out the company's debt (other than committed leases retained in the group). By that stage CPI will be a lean and mean machine. It is like starting all over again, but learning the lessons, will probably focus on technology areas.

CPI will be substantially rerated if it is considered as a technology company in its new form (this would be my way of thinking about the direction of business). One never say never, it may even gain entry back into the FTSE100 one day.

[oldtimer169] 12/7/2024 08:39

New broom sweeps clean,and with over £2billion revenue there's plenty of scope.The latest disposal is another example of hidden value waiting to be unlocked.DYOR

[kingston78] 12/7/2024 08:36

The share is poised to attack the 30 p level.

[gripfit] 12/7/2024 08:27

Not even back to Jan 24 price yet

[tergifts] 11/7/2024 23:27

Just looking back at the 14 December 2023 Pre Close Trading Update with
Broker Forecasts thereafter, leading up to the Mar 6 2023 Full Year Results.

With the Share Price Hitting 43p.

Capita today seems to be in a much healthier and stable position. The company has has no further dilution, has similar projected turnover (Around 2.5B after removing Capita One). Slightly higher margin forecast 6-8% and should the 200M sale complete as expected, financially less risk. So those who think 40p is all talk, do some research.
Added to the fact that we now have someone at the helm with the Vision of Technology to grow the company into the rapidly evolving AI world.

I think we will start seeing many Broker Updates in the 40+ Range very soon.

06-Mar-23 RBC Capital Markets Outperform 40.00 50.00 Reiteration
02-Mar-23 Shore Capital Hold - - Reiteration
22-Feb-23 Peel Hunt Limited Buy - 48.00 Reiteration
14-Dec-22 Barclays Overweight 40.00 40.00 Reiteration



Pre-close trading update for the 11 months to 30 November 2023
Capita plc (“Capita”;)
Increased contract wins and execution of significant cost reduction programme
Summary:
 Positive operational performance across both divisions; adjusted revenue1
growth of
2.1% in 11 months to 30 November 2023
 Contracts won with a Total Contract Value (TCV) of £2.89bn, increase of 47% from 2022;
significant improvement in win rate for new contracts and expansions to 70%
 Execution of efficiency savings with planned overhead cost reductions of £60m on an
annualised basis from Q1 2024
 Underpins target of more than doubling Group operating margin from 2.9% and
delivering sustainable positive free cash flow over medium term
 Completion of Travel disposal, exchange of Fera with completion expected in early 2024
bringing to a close the Portfolio Division disposal programme
 Reduced future pension fund contributions under the recently agreed 2023 Triennial
review; actuarial pension surplus as at end March 2023: £51m


06-Mar-23 RBC Capital Markets Outperform 40.00 50.00 Reiteration
02-Mar-23 Shore Capital Hold - - Reiteration
22-Feb-23 Peel Hunt Limited Buy - 48.00 Reiteration
14-Dec-22 Barclays Overweight 40.00 40.00 Reiteration

[henrycns] 11/7/2024 18:52

Will take a few on the 16p pullback.

[kingston78] 11/7/2024 18:38

It is all about cash flow for a business, not profits although profits are important. There is now more room for the company to manoeuvre. It may well be true that there are still loss making businesses in the group. These should be sold if they cannot turn them around. Some companies may see them as a strategic fit and save operating costs from their perspective. I would cut the debt to zero.

[fenners66] 11/7/2024 17:42

Whilst they may still have a load of businesses who wants a loss making one?

Remember
Last years - comprehensive expense, (losses really) was -£244m
Removing £19m of profit before tax
and hoping (?) to save £18m on interest

I reckon there will be more exceptional costs as yet unannounced still to come.