(I have a small long position)

A really, really unloved company that has been selling bits of itself off to keep the rest going.
The trouble is that the bits that can be sold off are the larger and profitable segments and they are starting to run out of such businesses.

New accounting standards did not help.

They seem to be looking at selling the education software business (and I think have been for a while) as noted in the latest 6 monthly results.

It is trying to turn itself around but... has not persuaded anyone this is happening.

And admitted it Stocko page for most recent 6 monthly results

• Profit has been significantly affected and the delay in the return to growth means we will not generate sustainable cash flow(2) for 1-2 years


Capita is actually a conglomeration of a lot of disparate businesses - many of which are not that big.

I bought on the thesis that the unpopularity of Capita as a whole and the unprofitability of some parts of the operation (bought when they targeted revenue) hide the more profitable parts.  Those unprofitable parts will just not be renewed on contract expiry.  This is not discernable from the accounts.  

In other words I hope the sum of the value of the parts exceeds the total value.

It now seems a PI group may have had a look.

This is money article on Capita / CVC

Does anyone else have a view.

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