Capita Share Discussion Threads

[peterrr3] 31/12/2024 13:00

I agree the pensions business is where the value currently is and is propping up others, but margins outside pension project work are under pressure with some happy clients having to move to lower cost providers on tender. IT Brain drain is also an ongoing problem.

[peterrr3] 31/12/2024 12:45

Hi Trenners you have to give the ramping some balance which means calling out paid write-ups for what they are, showing how Capita is not alone with the tech they roll out and are bidding for jobs with, nor can a telecom focused tech hire no matter how good be expected to wave a magic wand with new value propositions across sectors they have no experience in at all. The call centre teams love the tech but it hasn't translated to revenue or any new bid wins. These have been lost solely on cost. And who are the VP level management in the structure? These are the ones making the bids and who have to deliver. You may think a new broom sweeps clean, but no, pretty much the whole bunch pre date Lewis. That is how well they can protect their turf.

[dickiebird2] 31/12/2024 12:15

Keep buying that is my message for the new year!!

[2trenners] 31/12/2024 11:20

@Peter - why are you so negative here all the time?

Lots of city analysts (like Richard Staverly from Rockwood) are all reporting the same sort of review as Edison.

This is definitely undervalued by any measure (the comment about the Capita Pension business probably being worth more than the entire company market cap was eyebrow raising).

[peterrr3] 31/12/2024 01:38

Edison is a paid for service, give the brief, make the payment and they say it. They have absolutely no credibility at all. I just assumed everyone knew this, it is common knowledge.

[2trenners] 30/12/2024 20:39

@Wooster & @Simon
It's really heartening that well respected analysts / fund managers, when they take a closer look at Capita, unanimously agree that AH is upto the task of turning this company around and just needs a bit more time.

It gives me great hope, whilst I sit on my very large paper loss, that this will come good in the end!

[wooster4] 30/12/2024 17:44

whilst the salary levels for the CEO and CFO are excessive given the company's market cap, for the CFO to invest his own money equal to 50% of salary is a huge vote of confidence.

[simon gordon] 30/12/2024 17:27

Fundie, Richard Penny, with a succinct analysis of the current situation at 21.45:

Vox Markets - 18/12/24

[davidbennett] 30/12/2024 17:16

WOOSTER4 - Yes you’re correct. Pablo Andre, Capita’s CFO purchased 1.2m shares on 8th August making his total holding 1.85m. Not an insignificant holding by any means. Probably the person best placed to assess Capita’s financial position.

[aljm] 30/12/2024 13:38

Announced Traded Action Notifier Price Currency Amount Holding
07-Aug-24 05-Aug-24 Transfer From Adolfo Hernandez - - 2,509,709 3,159,709
06-Aug-24 05-Aug-24 Buy Tim Weller 16.24 GBX 1,062 820,675
05-Jul-24 04-Jul-24 Buy Tim Weller 14.07 GBX 1,228 819,613
13-May-24 10-May-24 Buy Tim Weller 14.18 GBX 1,217 818,385
05-Apr-24 04-Apr-24 Buy Tim Weller 12.91 GBX 1,336 817,168
21-Mar-24 20-Mar-24 Buy Nneka Abulokwe 13.25 GBX 74,324 74,324
18-Mar-24 15-Mar-24 Buy Adolfo Hernandez 14.07 GBX 325,000 650,000
15-Mar-24 15-Mar-24 Buy David S Lowden 13.65 GBX 250,000 500,000
07-Mar-24 04-Mar-24 Buy Tim Weller 20.40 GBX 846 815,832
06-Mar-24 06-Mar-24 Buy Adolfo Hernandez 16.21 GBX 325,000 325,000
07-Feb-24 05-Feb-24 Buy Tim Weller 19.72 GBX 875 814,986
08-Jan-24 05-Jan-24 Buy Tim Weller 22.45 GBX 767 813,236
08-Jan-24 05-Jan-24 Buy Jonathan (Jon) Lewis 22.45 GBX 770 3,249,051
06-Dec-23 04-Dec-23 Buy Tim Weller 20.64 GBX 838 812,469
06-Dec-23 04-Dec-23 Buy Jonathan (Jon) Lewis 20.64 GBX 835 3,246,741

[aljm] 30/12/2024 11:57

buying is not a sign of performance, want to take a look at Schroders buys ?

[peterrr3] 30/12/2024 11:27

Dave the Divisions are really good at hiding reality from the Head Office. All contracts are in the bag, project work from existing clients will have huge margins, restructuring will create synergies ..... Do you really think they would have bought in with the knowledge they would lose clients and be cash flow negative at year end. Not a chance.

[diku] 30/12/2024 10:03

One can talk the talk ...talking becoming reality is another...under the wider economic conditions...

[trader4ever] 30/12/2024 09:27

We have only seen talks from AH and his team. Reality is share price down from 22p to 14p since AH joined. This is his performance so far.

[davidbennett] 29/12/2024 22:21

Only in time will we know which opinion was right. However, I also take the view that the quality of this team will successfully transform Capita into a cash generation machine. That faith is also evidenced in their share purchases - the FD bought two lots of £50k’s worth of shares in May then topped it up in August buying £200k’s worth (1.2m). So in 12 weeks within the business he saw enough evidence to consider tripling the value of his shareholding. As they say, actions always speak louder than words.

[2trenners] 29/12/2024 21:55

@Perer - a business is only as good as the people that run it .... And the people running Capita NOW are absolutely top drawer.

I understand why you would be unimpressed by the Capita of old ... but the old guard (led by Lewis) have been swept aside.... And we have some SERIOUSLY clever and successful people driving strategy and steering the business now.

If this class management team can't save Capita then no one can .... But I firmly believe they have the skills, expertise and experience to make capita a great, profitable, company again.

The people driving Capita now have SUCCESS written all over themselves!

[peterrr3] 29/12/2024 21:23

It's obvious your research is just on the people they are hiring, I'm just saying that for Capita past performance means squat. You have provided no content in how the business runs at all and what was put in place prior to and after Alfonzo joining. Counter my arguments, I hold so would love to be proven wrong, just don't just point to invisible research or your output on other stock as it is meaningless.

[peterrr3] 29/12/2024 21:12

Business Units are for sale, the proceeds will be used to pay for redundancies in other areas which are never provided for and debt will be temporarily reduced. Margins will be cut on the handful of remaining discretionary spend cash cows as the UK budget forces some serious belt tightening. That will be 2025.

[peterrr3] 29/12/2024 21:00

Then you will know that AWS, smart agent and all was rolled out in Germany 9 months ago to telecoms and insurance clients to much internal fanfare and generated nowhere near the expected revenue. Please give me your research rather than someone's cv. Telecoms clients are but a small and decreasing part of Capita's income. Bringing onboard a pile of telecoms specialists is no different from assembling the old successful team and is exactly what John Lewis did to abject failure. I suggest you have a look at the senior manager reviews on glassdoor over the last month, they are actually quite accurate, many from the tech teams they need to keep.

[ttny2004] 29/12/2024 20:13

I don't think so.If anything Labour is privatising businesses such as railways, etc, and nationising them again.

[peterrr3] 29/12/2024 20:11

Just reinforces how bolting on AWS isn't the panacea you all think. Slim margins for Tata means underwater for Capita with their bloated structure.https://aws.amazon.com/partners/tataconsultancyservices/

[peterrr3] 29/12/2024 20:04

lol, if only Capita's shares dipped 3% on underwhelming performance.