Capita Share Discussion Threads

[the technical trader] 17/7/2024 09:19

Independent view:



#Labour

[ayl30] 17/7/2024 08:52

I agree, the civil service do not have Capitas skills in IT and project management. Also most of their current contracts are embedded into the various services making it difficult to get rid of them

[mirabeau] 17/7/2024 08:47

The unions despise outsourcing. I'll leave it at that and top up if these concerns are mitigated in some way

good fortune

[line and length] 17/7/2024 08:45

Sorry don't understand your concern here. Surely Labour are going to value and need Capita's expertise, experience and skills more than ever.

[henrycns] 17/7/2024 08:43

Time to sell. One more leg to the downside comes next. Buy at 12p

[mirabeau] 17/7/2024 08:28

Breaking out here.

I want to add more but need confirmation that scum Labour and their unions aren't gonna try and freeze CPI out of the picture

[gripfit] 16/7/2024 10:03

Let the top slicers out …

[sr2day] 16/7/2024 08:00

LABOUR has got other stuff more important to sort out.not Labour of 50yesrs ago.

[mirabeau] 16/7/2024 07:55

My only concern is if Labour and their allies (local auth and Quangos, public sector bodies) start taking stuff 'in house' and move away from outsourcing. CPI needs to be aware of this potential risk

[gripfit] 16/7/2024 07:29

£1 by Xmas ….if it can go from £1.50 to 40p in a few days ..etc etc

[tergifts] 16/7/2024 07:27

Skinny should we get the Break above 33 then I see the new range more like this and the turnaround of the company would suggest we should break out of the downtrend. The Monthly Cycle suggest this is more likely to happen in the Next few months July,August for 32 but if it has legs then we could be heading higher in the upper range before Xmas IMO DYOR NIAI


free stock charts from uk.advfn.com

[bigbigdave] 16/7/2024 06:52

Back in here recently having sold at around 8 quid in 2008.

[skinny] 16/7/2024 06:40

I'd like to add a couple of imaginary lines to your chart.

[tergifts] 15/7/2024 18:51

The Chart and Monthly Cycle suggests we will hit the top of the trend line at around 32p for the end of July or end of Aug. DYOR



free stock charts from uk.advfn.com

[sr2day] 15/7/2024 18:26

Once it crosses 23p then we are are looking at 30p which may happen very quick.

[pinemartin9] 15/7/2024 18:09

My averaging down almost 2 years ago was at 22p! I need 33p for break even. I felt my original investment represented value, and still do. This could put on another 15% this week and would still be significantly undervalued in my opinion.

[sailorsam1] 15/7/2024 17:45

Where do we think this will pause before next hike

[pinemartin9] 15/7/2024 16:17

This share price surge in recent times has been accompanied by staggering volume. The 10 day to 3 month average volume is up 50%! Looks to be a lot of redistribution of shares.

[jsg123] 15/7/2024 13:19

Just to add if you factor in the following one offs, most of which will be non recurring from 25, imo even as is the company will be in a good place.

Overall op profit was 106.5
But because of :
Am and Imp 0.2
Goodwill imp 42.2
Bus exits 36.4
Cyber 25.3
Cost reduction 54.4
Resulted in:
Overall op profit was (52)

There was also 30 mill regular pension deficit payment and 16.3 pension deficit triggered by business disposals.
Plus lower gains on sale of businesses 2.4.

[jsg123] 15/7/2024 12:43

All understood and point taken.
Besides I think it will be near on impossible for any broker to realistically have any clue on next years earnings.
The new CEO strikes me as very canny and is seemingly putting shareholders firmly at the top table. There are also new contracts and renewals or not unless margins are adequate.
And I just get this feeling reading between the lines that he's been holding back a bit in order to guide on the low end, especially timescales in March.
I guess the point really is which others have made, is given the net debt is 182 and size of this recent disposal is 207, and I think contributes to circa 50 mill in revenue per year, it's made a mockery of how the UK market values companies, all caps imo.

[eigthwonder] 15/7/2024 12:27

Sure, there is the immediate interest cost savings to partially mitigate the loss of earnings from the sale, but the continuing group will look less attractive than before - as you note the cost savings will be realised "eventually" but that could be beyond brokers forecast horizons, and they are an aspiration and not nailed on. I am not trying to cook up an hysterical sell story, just trying to guard against complacency based on "no downgrades " chat.

[jsg123] 15/7/2024 12:10

Then there is the eventual 160 mill of cost savings , plus savings on interest on the 80 million loan that will probably be repaid, and this in itself will result in overall earnings/ cashflow upgrades.
That disposal is one smaller business in the grand scheme of things

[eigthwonder] 15/7/2024 11:37

I re-read the RNS in light of the fact that "no downgrades post disposal" seems to have become the accepted narrative around this one. To my eyes this is a cleverly worded statement as it says "no downgrades for the continuing group". So, take away the profits of the software business and you are left with a less profitable business and therefore headline downgrades. In other words, the less good services business is expected to perform in line with previous guidance. Not quite "no downgrade" in my book. And don't look to the brokers as their analysts will be unable to publish new numbers because the size of the transaction will mean they are silenced. That said, the debt to equity story could be worthwhile if the CEO gets it right.

[mirabeau] 15/7/2024 11:06

tanners

Got it, cheers fella

[gripfit] 15/7/2024 10:43

Not even any where near pre hack crisis levels