Capita (LON:CPI) the next Carillion?
If Carllion had taken the action Capita now proposes a year ago Carillion might not have been the first Carillion
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Mercury61
27 comments
mercury61
"A bit like Carillion, Capita's problems have been pretty
long-running ... the company is in a state of turmoil and the
new CEO has come in and set out a plan to get it into a state of
recovery," Khalaf said, adding that the adverse market reaction
wasn't surprising.
Mike888
Capita is not a Carillion, firstly it seems to have a new CEO who at first glace would seem competent. The work it performs is on the whole different to Carillion, its margins are better, its top line is better. The share price drop is (a) because of a significant equity dilution (b) loss of dividend and (c) the Carillion panic. Yes it has lots of debt, not good.
The new Capita should look a whole lot different to the existing company, all things considered I definitely wouldn't right them off.
andrewdb
Not going under,
but I wouldn't be a shareholder not least as they are not in a growing or friendly market.
looking at the stocko financial data, this co has negative ~-680m of assets.
The new CEO shows promise, but it will take some years before the company turns round not least as simply dumping non-profit making areas (at firesale prices) wont help and the rate of change is determined by the average outstanding length of the contracts - probably about 2-3 years.
... and the stocko advice on profit warnings is to run fast as soon as they are made - and anyone who held post the first one can testify to that wisdom.
nigelpm
Fully agree it's not going under. These actions are fully necessary and might just save them.
dodge1664
It'd be interesting to know what the Stock Rank on this one was before the share price collapse.
