Join our community of smart investors

Capita managers make grand gesture

Members of the group's board bought up shares following the group's latest results
May 3, 2018

Capita’s (CPI) performance in recent years has been blighted by one problem after another, with asset write-downs, restatements and – most recently – a rights issue and the suspension of the dividend. Understandably, management has tried to draw a line under all this, and has plumped for a grand gesture intended to instil confidence.

IC TIP: Sell at 195p

Coinciding with the release of the group’s most recent results, 14 of its senior staff bought shares to show us all that this time it’s different. Indeed, across the group’s board and executive committee, only three members did not purchase shares. One of these - finance director Nick Greatorex - was among those granted options as part of a long term incentive plan and has since purchased shares as part of the group’s share ownership plan.

The question now is whether management will be able to turn it all around. Losses increased more than fivefold at last count due to a slew of impairment charges. Net debt fell 37 per cent, but still sat at £1.2bn. In order to shore up finances, the group is carrying out a £701m rights issue, but investors are clearly nervous; as the UK government negotiates Brexit, more delays to public sector contracts are a distinct possibility.

Buys
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
CapitaLucy Neville-Rolfe23 Apr 185,537180.599,9995,5370.001
CapitaJonathan Lewis (ceo)23 Apr 18138,500179.15248,123138,8690.021
CapitaGillian Sheldon23 Apr 182,000179.153,5835,0000.001
CapitaIan Powell (ch)23 Apr 183,600177.756,39912,0000.002
CapitaAndrew Williams23 Apr 1830,000179.1553,74540,0000.006
City Pub Group (The)Alex Derrick (md)20 Apr 186,10417010,377431,7860.739
City Pub Group (The)Clive Watson (ch)20 Apr 1820,00017234,4002,546,4754.361
CroninLaurence Ede23 Apr 18357,1422.810,000801,5860.146
Dunedin Income Growth Inv TrustHoward Williams19 Apr 1810,000248.99824,90010,0000.007
Energean Oil & GasSimon Heale (ch)20 Apr 1820,000467.593,50041,9780.027
Energean Oil & Gas♥Simon Heale (ch)25 Apr 1810,500468.949,23552,4780.034
GBGI♥David Gibson23 Apr 18100,0008080,000100,0000.115
GBGI♥David Gibson23 Apr 18250,00080200,000350,0000.402
GBGI♥David Gibson24 Apr 18650,00080520,0001,000,0001.150
GBGI♥David Gibson25 Apr 18200,00080160,0001,200,0001.380
Gresham House StrategicDavid Potter (ch)23 Apr 182,406831.2920,00117,1250.469
HuntingKeith Lough23 Apr 182,00078515,7002,0000.001
IntercedeChuck Pol (ch)24 Apr 1862,5002918,125133,0370.264
Invesco Asia TrustFleur Meijs24 Apr 187,75828221,87813,4060.019
Jupiter European Opportunities TrustNorman Lamont19 Apr 181,980742.379914,69914,6600.013
Oakley Capital InvestmentsPeter Dubens25 Apr 185,446,885164.828,977,5567,585,0523.704
Old MutualIngrid Johnson (fd)19 Apr 1840,862242.999,254108,1550.002
Omega DiagnosticsColin King (ceo)20 Apr 18190,47610.520,000468,2530.369
Premier Global Infrastructure TrustGillian Nott20 Apr 1815,000128.519,27515,0000.083
Primary Health Properties*Stephen Kell19 Apr 1813,88810814,99913,8880.002
Primary Health Properties*Geraldine Kennell19 Apr 18231,481108249,999257,9510.035
Primary Health Properties*Ian Krieger19 Apr 1881,48110887,99981,4810.011
Primary Health Properties♥Alun Jones19 Apr 189,25910810,000177,7770.024
Primary Health Properties*Alun Jones19 Apr 1818,51810819,999168,5180.023
Redx PharmaIain Ross (ch)25 Apr 18150,0001116,500600,0000.474
Rentokil InitialCrispin Davis20 Apr 1852,500285.04149,64652,5000.003
Riverstone Energy♥Kenneth Ryan23 Apr 18428,5961,2125,194,5845,925,7057.014
Riverstone Energy♥David Leuschen23 Apr 18428,5961,2125,194,5845,925,7057.014
Riverstone Energy♥Pierre Lapeyre Jr23 Apr 18428,5961,2125,194,5845,925,7057.014
Scancell*John Chiplin (ch)20 Apr 18900,00012108,0002,000,0000.534
SimplyBizNeil Stevens19 Apr 1825,00016140,2501,536,9752.010
Spirax-Sarco EngineeringKevin Boyd (fd)25 Apr 187505,65742,4282,7500.004
Spirax-Sarco Engineering♥Kevin Boyd (fd)25 Apr 187505,65742,4283,5000.005
Taptica InternationalTim Weller (ch)23 Apr 187,298273.719,97594,6300.140
Tarsus♥Neville Buch (ch)19 Apr 1824,000306.3573,5249,045,9187.990
TarsusRobert Ware19 Apr 1825,000307.576,875275,0000.243
Sells
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Ashmore♥Tom Shippey (fd)19 Apr 1897,877419410,105106,9400.015
Ashmore♥Tom Shippey (fd)20 Apr 1810,716420.845,09396,2240.014
Barr (A G)Jonathan Kemp25 Apr 183,40068823,39211,5300.010
Barr (A G)♥Jonathan Kemp25 Apr 184,00068827,5207,5300.006
Begbies TraynorMark Fry24 Apr 1816,4446711,017127,4460.116
Derwent London♥Simon Silver20 Apr 188,2503,092255,090171,0240.153
Everyman MediaCharles Dorfman19 Apr 18162,514230373,7825,342,5277.621
Everyman MediaAdam Kaye19 Apr 18327,848230754,0505,358,4327.643
Everyman MediaPaul Wise (ch)19 Apr 18327,848230754,0502,535,9923.617
Gamma CommunicationsAndrew Stone24 Apr 1828,500728207,480445,0000.477
Independent Investment Trust (The)D McDougall (ch)19 Apr 1825,000735183,7508,134,50014.665
Independent Investment Trust (The)D McDougall (ch)20 Apr 1825,000742185,5008,109,50014.620
PurplebricksMichael Bruce (ceo)19 Apr 184,444,44436015,999,99833,218,14711.005
PurplebricksWilliam Whitehorn19 Apr 18225,000360810,000613,2690.203

*placing/tender/open offer ♥spouse/connected party