I could have told them all this years ago. Watched it happen with companies I dealt with (and still do). They ended up buying two different public sector software businesses with competing products, so that they had to sell off one of the housing benefit systems and stopped developing one of the housing systems. I've seen them buy a company just to get its contact book in an area they wanted to expand into - nothing about having innovative products, all about being seen as "safe" by public sector procurement because they are too big to fail.
Since selling by business last February I have been doing a few days a week for the new owners just to ensure the handover goes smoothly.
We had a very detailed letter yesterday from MITIE relating the fact they are not about to do "a Carrillion" and they are in a good place, plus they are not reliant on Government contracts.
He won't hesitate to offload the non core businesses. He'll also get rid of a whole layer of the management structure and invest in some of the undoubted talent they have.
He won't hesitate to offload the non core businesses. He'll also get rid of a whole layer of the management structure and invest in some of the undoubted talent they have.
Carillion's problem was that they forgot what their core business was and bolted everything and anything on to the group in the mistaken belief that bigger is better...even if you had no idea what impact the additions had!
Capita's service levels are appalling and has never had an original idea in it's life. It buys up any business that innovates or develops a better proposition in order to protect/acquire market share. It's a people business and it rarely acquires a business and manages to retain the key people that made it successful in the first place.
I could have told them all this years ago. Watched it happen with companies I dealt with (and still do). They ended up buying two different public sector software businesses with competing products, so that they had to sell off one of the housing benefit systems and stopped developing one of the housing systems. I've seen them buy a company just to get its contact book in an area they wanted to expand into - nothing about having innovative products, all about being seen as "safe" by public sector procurement because they are too big to fail.
Wasn't Anite was it? They were bought out for exactly same reason when I was there.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
Capita's service levels are appalling and has never had an original idea in it's life. It buys up any business that innovates or develops a better proposition in order to protect/acquire market share. It's a people business and it rarely acquires a business and manages to retain the key people that made it successful in the first place.
I left Capita at the end of last year and the place is an absolute shambles. The new CEO gets it spot on in his statement. No long-term planning and operational chaos. They don't know how to say no to clients and are obsessed with making a quick buck with no future strategy. Anyone who has worked there for the past few years will have been raising these exact concerns with senior figures and been ignored. Serves you right Capita.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
Still making money..... I might have a small dabble.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
I could have told them all this years ago. Watched it happen with companies I dealt with (and still do). They ended up buying two different public sector software businesses with competing products, so that they had to sell off one of the housing benefit systems and stopped developing one of the housing systems. I've seen them buy a company just to get its contact book in an area they wanted to expand into - nothing about having innovative products, all about being seen as "safe" by public sector procurement because they are too big to fail.
Wasn't Anite was it? They were bought out for exactly same reason when I was there.
No, Sungard Public Services aka Vivista (bought for their operational systems for emergency services). I think the Capita benefits system they disposed of might have gone to Anite, they kept the one with more customers from each side, trouble was they were built on completely different architectures and they lost/pushed out a lot of the key people who'd worked on developing them. (As others have noted, the "people" part of being a people business often passes them by).
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
You've convinced me, I'm in ankle deep in the morning!
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
You've convinced me, I'm in ankle deep in the morning!
God no.
Wait a week when they've fallen further.
Seriously, Lewis is not only a capable guy with a superb track record working in failing companies, he is highly ethical in his business dealings - which upset his bosses at Halliburton.
The fact he's suspended the dividend payments (one of the reasons in the collapse of Capita's share price by the short sighted) he will also be watertight on compliance.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
I’d be surprised if Capita went under, shares might be worth a punt right now if you feel brave.
Dropping over 45% in a day is one helluva punt! I did make a few quid on Carillion last year, but that was early on in their profit warnings. Capita have already been through the same warnings and now this.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
He will do and he has already. Bought in a specialist 'transformation Director' already and the sell off of non core business will add a large amount of cash to their bottom line.
Forecast of £300m+ profit for this year isn't bad.
You've convinced me, I'm in ankle deep in the morning!
Incredible, he presides over the failure and liquidation of a £7 billion company. And he is rewarded with another very lucrative position:
"Davies joined Carillion in 2008 and rose to managing director of its UK Infrastructure business until the firm went bust in January 2018.
The liquidation cost hundreds of jobs and was the most drastic procedure in UK insolvency law, with liabilities of almost £7 billion.
MPs claimed the demise was down to “recklessness, hubris & greed”, with directors focusing on bonus pay-outs to senior executives even as the firm teetered on the brink of collapse."
Comments
https://www.theguardian.com/business/live/2018/jan/31/capita-profit-warning-shares-tumble-markets-nervous-eurozone-inflation-federal-reserve-business-live?page=with:block-5a7174ece4b05a271eb4cfa0#block-5a7174ece4b05a271eb4cfa0
I could have told them all this years ago. Watched it happen with companies I dealt with (and still do). They ended up buying two different public sector software businesses with competing products, so that they had to sell off one of the housing benefit systems and stopped developing one of the housing systems.
I've seen them buy a company just to get its contact book in an area they wanted to expand into - nothing about having innovative products, all about being seen as "safe" by public sector procurement because they are too big to fail.
We had a very detailed letter yesterday from MITIE relating the fact they are not about to do "a Carrillion" and they are in a good place, plus they are not reliant on Government contracts.
He won't hesitate to offload the non core businesses. He'll also get rid of a whole layer of the management structure and invest in some of the undoubted talent they have.
It's typical of a new boss coming in and getting all the bad news out straight-away, but they're not far off from being Carillion Mk II and he needs to make his transformation strategy very quick and very incisive.
Forecast of £300m+ profit for this year isn't bad.
Wait a week when they've fallen further.
Seriously, Lewis is not only a capable guy with a superb track record working in failing companies, he is highly ethical in his business dealings - which upset his bosses at Halliburton.
The fact he's suspended the dividend payments (one of the reasons in the collapse of Capita's share price by the short sighted) he will also be watertight on compliance.
And he is rewarded with another very lucrative position:
"Davies joined Carillion in 2008 and rose to managing director of its UK Infrastructure business until the firm went bust in January 2018.
The liquidation cost hundreds of jobs and was the most drastic procedure in UK insolvency law, with liabilities of almost £7 billion.
MPs claimed the demise was down to “recklessness, hubris & greed”, with directors focusing on bonus pay-outs to senior executives even as the firm teetered on the brink of collapse."
Or ever prove that I was wrong.