Cape plc is an industrial services business that as divisions in predominantly, building, scaffolding and insulation. It carries its busines out both here and abroad and is slowly but surely regenerating itself into a market leader and throwing off its old boring industrial image.

In a recent trading update on the 22/6/2004 it had several positive points that it announced at its AGM.

The chairman Martin May said,

'I am pleased to report that at the end of the first five months of trading, the
Company is ahead of budget and like-for-like sales show an encouraging increase
year on year.

Sales remain strong across most of the Company's activities with a healthy order
book to the year end in line with normal business expectations. Results from
the Company's offshore business have been particularly strong. Outside the UK,
CIS has experienced a number of accelerated contract start dates during the
first five months of trading and therefore turnover growth is expected to
balance itself during the second half of the year.

CIS continues to enjoy a strong position in most of the markets in which it
operates and since the beginning of the year, has been awarded a number of new
contracts both in the UK and internationally. In the UK, CIS is providing a
range of services on the 'Golden Eye' project offshore at St Fergus and
Mossmorran, and was awarded two three year onshore maintenance contracts for
industrial cleaning services and the provision of scaffolding and access
equipment at 'Didcot A Power Station'.

In the Middle East, CIS has been awarded a $6 million contract with Consolidated
Contractors Company for insulation work at Muscat, strengthening the Company's
leading position as a provider of insulation services in Oman. In Qatar, a
market where CIS has identified a number of new opportunities, CIS was awarded a
three year maintenance contract at Dukhan for Qatar Petroleum. Whilst still
taking advantage of further major project work, CIS continues to grow its
presence in higher-margin maintenance work on scaffolding and insulation
contracts, which now contributes about 60% of profitability in this region. ENDS.

Very encouraging news indeed.

Then if we look back at the last results we find that the company had an excelent trading period and also settled the ongoing litigation it had with the South African and UK shipyards something which in the past held this ones share price back.

FINANCIAL HIGHLIGHTS


Cape Industrial Services turnover(1) up 19.1% to 228.3m (2002: 191.7m)

Cape Industrial Services operating profit(1) up 8.7% to 10m (2002: 9.2m)

Group turnover(1) of 231.9m (2002: 224.8m)

Group operating profit from continuing operations(1) was 3.5m
(2002: 15.6m)

Group operating profit from continuing operations(1)(2) up 32.7% to
7.3m (2002: 5.5m)

Year end net debt reduced to 5.4m (2002: 19.3m)


(1) including its share of continuing joint ventures

(2) before compensation for industrial disease costs of 3.8m (2002: credit
of 10.1m)


OPERATIONAL HIGHLIGHTS

Settlement of South African and UK shipyards asbestos litigation

Group restructuring fundamentally complete

New project wins in UK and Middle East

Key objectives set following strategic review


KEY FUNDIES

.Market cap circa of 55 million

.P/E historic of circa 7.3

.Forward P/E of 6.8

.Gearing approx net cash -5 to -6million

I beleive results to be out late september, buying in now could be very worthwhile.

Please DYOR.


cheers GF.

Cape JV Gets Multi-Million Pound Royal Navy Carriers Contract


LONDON (Dow Jones)
Energy services provider Cape PLC (CIU.LN) said Thursday that Ship Support Services, a joint venture between Cape and industrial painting firm Pyeroy, has been awarded a nine-year contract worth over GBP100 million to provide access and specialist coatings services for the U.K. Royal Navy's new generation of aircraft carriers.

Cape said it will be providing access services while Pyeroy will undertake blasting, specialist containment and coatings applications, adding that preparatory work has already started.

Cape and Pyeroy both have an equal share in the joint venture, which was awarded by BAE Systems Surface Ships Limited (BA.LN).

The first ship, the HMS Queen Elizabeth, is expected to enter service in 2016, said Cape, adding that its first sections are expected to arrive in August 2011. The second ship, the HMS Prince of Wales, is expected to enter service in 2018.

Cape said integration of the vessels will take place at Rosyth in Scotland and significant dock modifications have been completed to accommodate both ships.

At 1125 GMT, Cape shares were down 2.8 pence, or 1.1%, at 251.8 pence in a slightly higher Dow Jones UK Smaller Companies Market, which was 0.2% higher.

CAPE WINS SHELL OFFSHORE CONTRACT


RNS Number : 6498F
Cape PLC
18 January 2010

Embargoed: 0700hrs, 18 January 2010

CAPE FAR EAST PACIFIC RIM WINS SHELL OFFSHORE CONTRACT

Cape plc, the international provider of essential, non-mechanical industrial
services principally to the energy and mineral resources sectors, is pleased to
announce that it has been awarded additional contracts with Shell Philippines
Exploration B.V. valued at US$10m.

Cape has secured the Shell Malampaya 2010 Shutdown Isolation Package which comes
on the back of the recently awarded "Offshore Hook Up and Commissioning
Contract" on the Shell Malampaya Offshore Shallow Water Platform. The shutdown
will be executed in the first quarter of 2010 whilst the Hook Up and
Commissioning contracts are expected to complete in June 2010.

Shell Philippines has engaged Cape to provide multiple services during these
contracts ranging from core skills such as access, insulation, protective
coating systems, rigging to specialist skills including mercury handling,
nitrogen purging and flushing and pressure and leak testing.

Martin May, Chief Executive of Cape plc, commented,

"Cape has been actively engaged on the Shell Malampaya Offshore and Onshore
assets in the Philippines for ten years and we are delighted to be appointed to
carry out our third shutdown. Cape is uniquely placed to provide such an
extensive range of diverse and complex services."

Was that you cashing in, skinny? ;-))

SORRY, WRONG CHART ABOVE

Al :-) That 4.6m trade @202 didn't help!

Buy CIU now at 225p

I've had a dabble this morning @213.5

Just closed @232.5 - which was nice.

Contract win on the 3rd, results on the 10th - anyone else?

Final Results.

Highlights



Adjusted Profit Before Tax(1) up 25.7% to 60.7m (2008: 48.3m) at AER(10) and up 8.9% at CER(10)

Adjusting operating profit margin(2) improved to 10.8% (2008: 10.4%)

Adjusted diluted earnings per share(3) up 25.0% to 37.5p (2008: 30.0p)

Free cash flow(4) up 128.3% to 54.1m (2008: 23.7m) with 95.9% (2008: 87.7%) operating cash conversion(5) at AER

Net debt(6) reduced by 31.4% to 113.6m (2008: 165.5m), 1.3 times(7) EBITDA(8) (2008: 2.1 times EBITDA)

Firm intention to reinstate dividend payments later this year

Increased level of confidence in future IDC liability enables a provision to be booked of 70.5m and the modified audit opinion is no longer required in the Group's audited accounts

Loss before tax of 15.6m (2008: profit before tax of 37.8m) reflects booking of IDC provision for future liabilities of 70.5m

Basic loss per share of 3.5p (2008: earnings per share of 26.7p)

53% growth in order book with over 61% of consensus 2010 revenues(9) secured

Final Results.

Highlights



Adjusted Profit Before Tax(1) up 25.7% to 60.7m (2008: 48.3m) at AER(10) and up 8.9% at CER(10)

Adjusting operating profit margin(2) improved to 10.8% (2008: 10.4%)

Adjusted diluted earnings per share(3) up 25.0% to 37.5p (2008: 30.0p)

Free cash flow(4) up 128.3% to 54.1m (2008: 23.7m) with 95.9% (2008: 87.7%) operating cash conversion(5) at AER

Net debt(6) reduced by 31.4% to 113.6m (2008: 165.5m), 1.3 times(7) EBITDA(8) (2008: 2.1 times EBITDA)

Firm intention to reinstate dividend payments later this year

Increased level of confidence in future IDC liability enables a provision to be booked of 70.5m and the modified audit opinion is no longer required in the Group's audited accounts

Loss before tax of 15.6m (2008: profit before tax of 37.8m) reflects booking of IDC provision for future liabilities of 70.5m

Basic loss per share of 3.5p (2008: earnings per share of 26.7p)

53% growth in order book with over 61% of consensus 2010 revenues(9) secured

Interesting to see that the latest broker BUY targets are very bullish....

Old price target New price target Broker change

10-Mar-10 Panmure Gordon Buy 247.50p - - Reiteration

07-Jan-10 Panmure Gordon Buy 269.00p 310.00p 350.00p Reiteration

30-Nov-09 Arden Partners Buy 228.00p - - Reiteration

03-Nov-09 Arden Partners Buy 250.00p 295.00p - Reiteration

350p for Panmure Gordon and 295p for Arden Partners.

Looks far too cheap.

Fingers crossed for a good day here.

Might be worth taking a position here I have today.



Fundies look very good aswell with the stock looking very cheap on a forward P/E of only 5.6 going into 2011.

Cape PLC

FORECASTS 2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
20-04-10 BUY 61.50 38.20 70.60 44.00

Arden Partners
09-04-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00

Eden Group
01-04-10 BUY

Collins Stewart
10-03-10 BUY 63.80 39.00 70.50 43.00

Numis Securities Ltd
10-03-10 BUY 62.00 37.20 6.00 68.70 41.40 6.00

Evolution Securities Ltd
10-03-10 BUY 62.70 37.50 66.50 39.40

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 62.04 37.56 6.00 69.76 42.02 6.52

1 Month Change -0.02 0.00 0.00 0.01 -0.01 0.02
3 Month Change 1.40 1.37 6.00 -1.54 -0.10


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS % % 11.87%
DPS % % 8.67%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA m 87.78m 95.60m

EBIT m m m

Dividend Yield 0.00% 2.51% 2.72%

Dividend Cover x 6.26x 6.44x

PER -106.86x 6.37x 5.69x

PEG f f 0.48f

Net Asset Value PS p p p

Going very well at the moment and it should do being so undervalued.

http://www.yorkshirepost.co.uk/businessnews/Cape-sees-2011-as-watershed.6143139.jp
And a year of growth on the cards.....

Cape sees 2011 as watershed year for 11 March 2010
By Ros Snowdon City Editor

ENERGY services group Cape is predicting a return to higher growth in 2011 after a year of stability in 2010.


Cape, which has its UK operations based in Wakefield, said full-year adjusted pre-tax profits rose 26 per cent in 2009 thanks to contract wins in the Middle East and better than expected cost savings.

Cape, which provides insulation, industrial cleaning and training services to the energy and mineral resources sectors, said adjusted profits rose 26 per cent to 60.7m in the year to December 31.

Without adjustments, the group posted a pre-tax loss of 15.6m after booking a provision of 70.5m to enable it to draw a line under its asbestos liabilities.

The company, whose customers include EDF, BP and National Grid, has benefited from the defensive nature of its maintenance business, which accounts for 48 per cent of revenues.

Cape said it expects levels of activity to be the same in 2010 as in 2009, but it anticipates a return to higher growth in 2011, with demand for its services benefiting from ageing infrastructure in the UK and high growth in markets in the Middle East and Far East.

The company will look to restart dividend payments later this year, after last paying a dividend to shareholders 10 years ago.

The group's results were boosted by a number of significant new and renewed contracts in the Middle East worth 22m in total.

All the contracts are in Qatar and are associated with the country's burgeoning gas export business.

The biggest deal is a 13.5m fully integrated multi-discipline maintenance contract to supply access, insulation, fireproofing, refractory, painting and general civil work to Qatargas's onshore and offshore facilities.

This contract began last June and will last for three years. There is also a provision within the contract for a two-year extension through to the middle of 2014.

Cape also won a 5.5m multi-discipline contract to supply access and insulation works on the ORYX Gas to Liquids plant in Qatar. The contract will last for three years.

ORYX Gas To Liquids operation is a joint venture between Qatar Petroleum and Sasol of South Africa. Cape has been commissioned to work on the first of a series of planned Gas To Liquids production facilities contributing to the State of Qatar's stated ambition of becoming the Gas To Liquids "capital of the world".

The third contract is worth around 3m and is a multi-discipline contract to supply access and insulation works for the Tank construction on the Shell Pearl Gas To Liquids plant within Qatar.

The Pearl plant will be the world's largest plant converting natural gas into 140,000 barrels per day of clean-burning liquid transport fuel and other products.

The project will also produce 120,000 barrels of oil equivalent per day of natural gas liquids and ethane.

Cape's chief executive Martin May said: "These contracts demonstrate the value to clients of Cape's bundled services proposition and our strength across our international footprint."

In January the group announced a 150m five-year contract with BP to work on all nine of the energy company's North Sea oil platforms.

Cape will provide fabric maintenance support and deck operations on the platforms together with onshore maintenance at BP's Dimlington Gas Terminal.

Cape already provides these services to BP at six of its UK North Sea oil platforms.

Bernard Looney, managing director of BP North Sea, said: "Cape has demonstrated its capability to deliver the services we need safely and efficiently and we look forward to a continued productive partnership."

Since the year end Cape has also won 6m in new contracts with oil giant Shell.


The growth of a company

Since its foundation over a century ago, Cape has had a varied and colourful history.

The Cape Group was founded in 1893 as an importer and manufacturer of insulation products.

Between 1893 and the 1950s, the company grew rapidly. It acquired its first factory in the UK in 1896 and at the start of the Second World War in 1939 manufacturing began at Acre Mill in West Yorkshire

In 1976 the group started its scaffolding division.

In 1979 it pulled out of its mining operations in South Africa and in 1982 it stopped manufacture of asbestos products. In 2006 it created a 40m asbestos fund for UK claimants. In 2007, Cape developed a significant presence in Australia.

Page 1 of 1

Last Updated: 11 March 2010 1:37 PM
Source: n/a
Location: Yorkshire

Up 11% should be lot more to come on this ones skinny P/E.

Leave me out of it !