Capita Share Discussion Threads

[trt] 15/9/2008 16:14

Topped up again this afternoon

[bigbigdave] 15/9/2008 16:09

Indeed 8-)

[trt] 15/9/2008 13:14

What a great safe haven !!

[trt] 29/8/2008 12:13

Capita wins 10-yr gas registration deal from HSE worth 14 mln pounds per year




LONDON (Thomson Financial) - Capita Group Plc. said it has been selected by
the Health and Safety Executive (HSE) to operate a new gas installer
registration scheme in Great Britain from April 2009 in a contract valued at 14
million pounds per year for a term of 10 years.
The business process outsourcing company said the new gas installer
registration scheme will replace the scheme currently operated by CORGI and will deliver a renewed focus on gas safety.
[e-mail]
ans/ms1

[trt] 21/8/2008 08:31

Yet again took advantage of the dip to boost my dividend

[trt] 17/8/2008 10:16

Big article in the Mail On Sunday page 60 - Capita is the stock to buy in these economic times. Capita will benefit hugely from big companies outsourcing work.

BUY says the Mail

MIDAS SHARE TIPS
Midas share tips: Capita, Carr's Milling
Joanne Hart, Financial Mail
17 August 2008

Capita is something of a stock market darling, particularly when the economic environment is uncertain.

The group specialises in business process outsourcing, which sounds rather vague but essentially means that it handles all the boring administration that companies - and the government - know they need to do, but hate doing themselves.
Capita's customers are incredibly varied, ranging from the BBC to Salford City Council to life insurance group Zurich.

The company administers more than 22m savings policies and handles more than £14bn of insurance claims.

It also works with 22,000 schools and more than 100 local authorities, doing such jobs as issuing council tax bills and collecting the money for homeowners.

On the plus side, Capita processes nearly 10m payslips every year and the group is even involved in the travel industry, processing half a million bookings annually.

This type of work is considered relatively recession-proof. In fact, many analysts believe that Capita should benefit from an economic downturn as companies and government authorities try to reduce costs by cutting the amount of office work they do themselves by contracting it out.

The company aims to reduce costs for its customers by about 20%, so it is likely to gain plenty of new business in the current climate.

Government bodies are under pressure to cut costs and Capita is also making significant headway in the life and pensions market.

In half-year results announced last month, the group was extremely upbeat when it unveiled a 16% increase in pre-tax profits to £120.2m and a 20% increase in the interim dividend to 4.8p.

The company has already won contracts worth more than £800m this year and chief executive Paul Pindar said: 'We remain very positive about future growth.'

City brokers agree, expecting profits before tax to rise by about 18 per cent this year to £277m and another 18% in 2009 to £327m.

The dividend is also forecast to improve from 12p last year to about 14½p in 2008.

Capita has been a consistent winner since it was founded in 1987. Pindar has been with the business since inception so he has a strong hand on the tiller and knows the company inside out.

[bigbigdave] 14/8/2008 21:48

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Buy Smith & Nephew at 600.5p

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[trt] 12/8/2008 15:55

Nice dip - grabbed a few more before the divi record date.

[oscar000] 11/8/2008 16:44

It looks likely

[trt] 11/8/2008 16:03

Moving up strongly now - I think we could see £7.70+ by the end of this week

[bigbigdave] 05/8/2008 09:50

Yep, Blue sky ahead.

[keran] 05/8/2008 09:41

I think we could see a move up to £7.50 from here - fantastic!!!

[keran] 05/8/2008 08:14

Tipped in IC last Friday

[bigbigdave] 04/8/2008 17:05

On the verge of a breakout (again). Which way this time?

[trt] 31/7/2008 09:35

I just love these early morning dips in the share price - great for topping up.In profit later on in the day when the share price rises again , saw it happen yesterday as well.

[trt] 29/7/2008 12:13

I grabbed a few more shares this morning - in time for the 20% hike in the dividend payout with the 'record' date being in August.

[trt] 28/7/2008 09:14

We have said all along what a perfect recession proof stock Capita is and the newspaper pundits agree as well.
Capita will hugely benefit from the growing trend of outsourcing by large companies and we can expect a continous flow of annoucements over the coming months.

Times :

Capita's pipeline of prospective work has swelled from £2.5 billion to £3 billion over the past six months.
Custom from local government – the niche from which Capita grew – remains buoyant, with a less generous allocation of funds from central government making potential cost savings from outsourcing more attractive. Further, life insurers' and pension providers' moves to contract out the running of their back offices – Capita's fastest-growing business – show no sign of abating, with first-half sales leaping from £106 million to £229 million.

[brain smiley] 25/7/2008 08:32

At 20 times current-year earnings, Capita's shares may find it hard to appeal to first-time buyers, given the premium to peers. However, long-term contracted revenues linked to inflation and annual forecast earnings growth of nearly 20 per cent over the next two years give ample reason to hold on at 670p, writes the Times.

The Independent says that Capita has proved remarkably resilient during the recent market falls and is likely to be an early beneficiary of any improvement in sentiment. Buy.

The Telegraph writes that Capita is not cheap on 17 times next year's earnings with a 2.6pc dividend yield. But if you must play the stock market now, it's about as safe as they come. Buy.

[oscar000] 25/7/2008 07:30

Capita, the outsourcing group which runs London's vehicle congestion charging scheme, is on a roll. More business is coming in as companies off load back office services to save costs. Life and pension funds are the latest to shed information technology and administration work. Budget-stretched town halls continue to look at tasks which can be handled cheaply by outside contractors.

Against this background it is no surprise Capita cruised to half year pre tax profits of £120m, up 16 per cent. Shareholders get a 20 per cent increase in their dividends. The group secured £626m of contracts during the half to June and has picked up a further £187m since then. The total bid pipeline has grown from £2.5bn in February to £3bn. Analysts estimate the potential market is worth £94bn, with only 5 per cent outsourced so far. Capita's customers are evenly split between the public and private sector, giving it 20 per cent of the market. The present crunch is forcing both groups to look at ways of achieving efficiency by farming out work – a lot ending up in countries such as India. There are plenty of acquisition opportunities. Capita bought eight businesses for £129m in the half-year, its busiest ever spell. It says sellers are now being more realistic about prices.

If the market had any gripes, it was that organic growth appears to have fallen from 17 per cent in the second half of last year to 14 per cent, and on 20-times forecast earnings the shares are fairly well valued. Even so, Capita has proved remarkably resilient during the recent market falls and is likely to be an early beneficiary of any improvement in sentiment. Buy.

[bigbigdave] 25/7/2008 07:03

Independent says buy

[trt] 24/7/2008 08:35

I agree the margin issue is not a problem and if as expected HUGE contracts with other FSTE 100 companies are won then profits + margins will increase dramatically.

Pinder hinted at other big contracts wins in the pipeline!!

[brain smiley] 24/7/2008 08:30

This piece makes the current margin situation appear more favourable. I reckon the market will trust CPI that margins will rise again. Wonder what the mid term is ?


"Capita's margins fell to 11.9 percent from 12.1 percent during the first
half of last year but the company said that long term trend for margins remains
positive.
Analysts previously told Thomson Financial News that Capita's margins will
be negatively impacted by acquisitions as well as start up costs relating to the
high level of contract wins during 2007.
They noted however, that the company will see an upside to its margins in
the mid term by the ramp up in revenues to match the Indian investment.
Capita said it will have three sites in Mumbai, India from October 2008, its
offshoring business following the transfer of PPMS as part of the Prudential
contract, as well as 3,000 people working there by the end of this calendar
year."

[oscar000] 24/7/2008 08:25

Margins down due to start up of new projects, will see recovery mid term. Investing to grow

[brain smiley] 24/7/2008 08:18

So...sales/profits as expected but margins slightly down.

Not what the market wanted...wouldn't be surprised if this finished down 20-30p.

If the margin figure had have risen only slightly this would be over £7 now.