Capita Share Discussion Threads

[trt] 04/12/2007 12:04

Listened again this morning to the conference call with institutional investors that took place yesterday - While many companies are looking to 2008 with dread, Capita believes a weaker economy could provide opportunities, as more companies seek to cheaply outsource the back office.More deals like the massive contract with the PRU.

Increased dividend, more special dividends, more share buybacks, more aquisitions, greater margins etc etc

I have topped up again this morning on the dip as I wanted to get in ahead of the expected interest rate cut next Tuesday by the US FED. The cut will ensure the DOW surges once again with the FTSE following suit.

[sharedoc] 04/12/2007 11:27

Doing nicely today on my short.

[trt] 03/12/2007 13:32

Capita boosted by insurance deals worth £1 billion - 03/12/07

New deals worth close to a £1 billion to administer insurance policies issued by Prudential and Co-operative Insurance allowed professional support services specialist Capita to accelerate in the second half, the London-based group says in a trading statement.

It has landed a £722 million contract over 15 years involving seven million mature life and pension policies at the Pru, and a £270 million, 10 year contract involving 4.5 million life, pensions and unit trust operations at the Co-op.

Although Capita (CPI) shares today dropped 6.5p to 735.5p, giving it a stock market value of £4.4 billion, in the longer term the news should be good for AAA-rated Audrey Ryan's AEGON Ethical Equity (AEGON Ethical Acc A) fund which has 1.81% of its resources in the group.

Funds that also have Capita among its top 10 holdings are Ted Scott's F&C Stewardship Growth (F&C Stewardship Growth 1 Inc) fund with 2.4% and the Capita BPM Investment fund with 2.15%.

Today's trading statement relates to the second half ending on 31 December. Some £1.89 billion of new contracts have been won, well up on £1.37 billion signed up in the second half of last year.

Capita chief executive Paul Pindar says a key element of the group's success is its acquisition of small to medium sized companies which extend its presence in existing markets or provide a footprint in new ones. So far this year he has made 12 for a total cost of £115 million.

India has also been important to the group. Last week it said it planned to acquire some of the Pru's Indian operations.

Preliminary results for the FTSE 100 group which now employs 28,500 staff in 250 offices, are due to be posted on 29 February.

[trt] 03/12/2007 11:00

Broker Panmure Gordon - BUY target price £8.35

[trt] 03/12/2007 10:44

Here come the updated broker reccomendations :

landsbanki - BUY target price £8.35
Charles Stanley - BUY target price £8.20

[trt] 03/12/2007 09:59

My word you want to listen to that conference call - A replay of the call will be available until 9 December: dial-in no: +44 (0)1452
550 000, call reference: 25987067#

Special dividend, share buy backs, strong growth to come etc etc

Topped up in the last half hour

[sharedoc] 03/12/2007 09:41

CPI has done exactly what I predicited, already up on my short at 742p.

[trt] 03/12/2007 08:32

Paul Pindar, Chief Executive, will host a conference call for investors and analysts at 9.00am today.

Details of the conference call are: dial-in number: [phone], call reference: 25987067#.

[trt] 03/12/2007 08:08

Press comment started already :

Citywire : Capita Group full-year contracts won seen at £1.89 billion; sees strong full-year performance; has excellent revenue visibility; has good pipeline opportunities

+
Capita sees faster revenue growth:

Stocks to Watch

Outsource specialist Capita says strong first half revenue growth has accelerated in the second half, with its businesses performing well. "With the excellent revenue visibility that we enjoy, we are confident we will deliver a strong performance in 2007 and 2008 and we have a good pipeline of opportunities to fuel growth beyond this," chief executive Paul Pindar added.

[bigbigdave] 03/12/2007 07:50

1.89 bln stg, from 1.37bln in 2006, pretty good for a large company.
Now who was it stated here last week that growth had stopped?? 8-)

[trt] 03/12/2007 07:43

RNS Number:9586I
Capita Group PLC
03 December 2007

3 December 2007



The Capita Group Plc



Trading Update



The Capita Group Plc ("Capita") is issuing a trading update ahead of its
preliminary results announcement for the period ending 31 December 2007, due to
be released on 29 February 2008.



The strong first half revenue growth has accelerated in the second half, with
our businesses performing well. Since our interim results in July 2007, we have
signed two significant contracts to deliver outsourced services on behalf of:



* Co-operative Insurance - to administer 4.5 million policies across their
life and pensions and unit trust operations. The contract is worth #270
million over 10 years (previously announced as #250m at preferred supplier
stage).



* Prudential UK - to administer 7 million mature life and pensions policies
including group and individual pensions, investment bonds and life and
endowment policies. The contract is worth #722 million over 15 years.



To date in 2007, Capita has therefore won major contracts worth #1.89bn (FY
2006: #1.37bn), further strengthening our position as the UK's market leader in
business process outsourcing services to the public and private sectors.



A key element of our growth strategy is the acquisition of small to medium sized
companies which extend our presence in existing markets or provide a footprint
in a new market. To date in 2007, we have completed twelve acquisitions for an
aggregate initial purchase consideration of #115m. These acquisitions will make
a positive contribution towards our planned revenue growth for 2008.



From an operational perspective, Capita continues to perform strongly. Our
operations in India are an increasingly important part of Capita's strategy
going forward. Accordingly, our announcement last week that we will be
acquiring a significant proportion of the Prudential's Indian operations, taking
our head-count in India to some 2,300, is of considerable importance. This
gives us increased scale, increased expertise and the opportunity to build our
offshore capabilities rapidly.



The Group continues to place the utmost importance on its core financial
disciplines. This includes ensuring we sign contracts that enable us to create
value for our clients, balance performance and risk sensibly and generate
acceptable margins for Capita. We have therefore built up a contract base which
delivers service excellence and continues to generate strong operating cash
flow. With regard to the latter, we anticipate reporting a positive working
capital movement in 2007, notwithstanding the significant level of incremental
new revenue that the Group has secured.



Our bid pipeline has been replenished strongly after our record wins this year
and our two most active markets remain local government and life and pensions.
We also believe that our clients' likely emphasis in 2008 upon increasing cost
efficiency whilst materially improving service quality will generate an enhanced
level of opportunities.



With the excellent revenue visibility that we enjoy, we are confident we will
deliver a strong performance in 2007 and 2008 and we have a good pipeline of
opportunities to fuel growth beyond this.

[trt] 03/12/2007 07:38

Capita confident will deliver strong growth in FY 07, 08 boosted by pipeline

LONDON (Thomson Financial) - Capita Group PLC said it is confident it will deliver strong growth for full-year 2007 and 2008 boosted by accelerated growth in the second half of the year and a strong pipeline of opportunities.
The UK's largest business process outsourcing (BPO) group said it has
further strengthened its position as UK's market lead in BPO to public and
private sectors with contracts won to date in 2007 worth 1.89 bln stg, from 1.37bln in full-year 2006.
Capita added it has excellent revenue visibility.

[trt] 02/12/2007 10:24

From the Sunday Times 02/12/07:

Indian summer

SHARES in Capita, the outsourcing specialist, have had a decent run, partly in expectation of a strong trading statement which will be issued tomorrow. But the market is also waking up to the opportunities from its growing Indian outsourcing business. This operation picked up Capita's biggest single contract from the Prudential last week.

The Mumbai centre specialises in managing the back office of life and pensions groups and the Pru deal doubles its Indian staff to 2,500.

Six years ago the average administration cost per policy was £30 – this has now come down to between £12-£14.

Paul Pindar, Capita's chief executive, believes the Indian business has the potential to double within three to five years. Capita now manages 23m life and pensions policies, but that is out of a total of 150m in the UK. If big corporates are tightening their belts, deals like the one we saw last week are going to become more common.

[merob] 02/12/2007 10:04

Just like you could "see" this being sub 650 the other day do you mean??

[trickyboyfish] 30/11/2007 17:05

That rise today has broken through the resistance on the down trend. Further to be smashed again next week. Where is the new top going to be I wonder? I can see this being far nearer to £8 by the end of the year and £10 by next year.

[bodeng] 30/11/2007 16:56

Good few days-roll on Monday.

[trt] 30/11/2007 12:36

Ah - the broker upgrades will follow the trading statement + press comment will in fact push the shares even higher.If there is any dip I would expect investors to take the opportunity and start buying even more.

[sharedoc] 30/11/2007 11:57

My opinion is that it will rise on Monday then fall back. I currently have no position in CPI but may open a short after the initial rise on Monday. It is only an opinion, I maybe wrong.

[trt] 30/11/2007 11:26

I hope they are long, I certainly wouldn't want to be short come Monday !!

[oscar000] 30/11/2007 11:24

excellent rise hope nobody is long,

[bigbigdave] 30/11/2007 10:24

Looking rather good Well done to those who bought at 650.

[trt] 29/11/2007 20:21

Remember, the trading statement will be published at 07.00hrs on Monday one hour before the stock market opens, so this leaves only tomorrow ( Friday )to top up holdings or go long and in turn increase ones profit post announcement.

[trt] 29/11/2007 16:36

I'll give you a couple of hints as to why they have brought it forward:

- Interim profits exceeded forecasts and were the best ever in the company's entire history
- Yesterday announced the biggest contract win ever for Capita

Fingers will be burnt if you are short !!

[oscar000] 29/11/2007 16:30

Cant wait but as you say dont be long. Any idea why they have brought it forward?

[trt] 29/11/2007 16:05

Trading statement now being brought forward it will now be on the 3rd December.
When you have got exciting news to tell you don't want to delay things.

Monday it is then, not much time left for a top up - I hope you are all long !!!!