FTSE 100: 7859.17 ▲ 80.38 (1.03%)
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|No. of shares out||667m|
|No. of shares floating||661m|
|No. of common shareholders||not stated|
|No. of employees||74755|
|Trading volume (10 day avg.)||16m|
|Profit before tax||£641m|
|Earnings per share||5.55p|
|Cashflow per share||44.20p|
|Cash per share||178.57p|
Shore Capital believes there is continuing operational risk at Capita (CPI) and the turnaround at the outsourcing giant will be a long time coming.
Analyst Robin Speakman retained his ‘sell’ recommendation on the shares, which fell 2% to 191.2p yesterday.
He said the process of rebuilding the company was only just beginning and the market is focusing on the capital strength of the group pending the £700 million rights issue.
‘We believe that many hurdles remain to be overcome, Capita has now admitted that it has problems, a prescription has been written, but the cure is still to be taken,’ said Speakman.
‘Our analysis reveals sharply rising debt levels from known liabilities, weak new business, high levels of contracted revenues up for renewal, active competition with margin pressure, and we suspect low morale among staff... in short, high risk is our perception.
‘We believe the sightline on recovery is likely to be long - so we would avoid and retain “sell”.’