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.

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 !

LOL.

lifted from across road..

Tipped on Investtech TA site for Monday Morning Report.......

Positive Candidate -Medium term, Apr 23, 2010 Analysis Explanation
An approximate horizontal trend is broken up. A continued strong development is indicated, and the stock now meets support on possible reactions down towards the trend lines. Has also broken a rectangle formation. A decisive break of the resistance at 261 will signal a further rise to 340 or more. The stock is testing the resistance at pence 265. This should give a negative reaction, but an upward breakthough of pence 265 means a positive signal. The stock is overall assessed as technically positive for the medium long term.

Am considering rejoining the race having been out since August last year.

Well its cheap enough Big Al.

Should be more upside to come.

Derd cheap IMHO......

Cape ForecastsYear Ending Revenue (m) Pre-tax (m) EPS P/E PEG Yield

31-Dec-11 689.84 68.74 41.90p 6.3 0.6 +11%

On a P/E of just over 6 going into 2011 and EPS growth predicted of 11%.

Cant see it remaing so cheap for long.

I don't think CIU will stay so high for long... take profit at 260p.

Staying in myself.

On such a low P/E its going to out value at sometime one way or another.

Into the blue for the day now.

ELO sung that .. or perhaps they were 'out of the blue'

Out of the Blue was a double album from memory. Mr Blue sky was one of the tracks.

Roll over Beethoven was my favourite.

Remember Roy Wood joing ELO for about a year.

Recognia gives out a bullish signal for CIU

Event Details for: Continuation Diamond (Bullish) A Continuation Diamond (Bullish) is considered a bullish signal, indicating that the current uptrend may continue. Prices create higher highs and lower lows in a broadening pattern, then the trading range gradually narrows after the highs peak and the lows start trending upward. The Technical Event occurs when prices break upward out of the diamond formation to continue the prior uptrend, which confirms the pattern.

Event Date: 23 Apr 2010
Opportunity Type: Long-Term Bullish
Close Price: 264.50
Target Price Range: 321.00 - 335.00

Price Period: Daily
Volume: 2,275,943
Pattern Duration: 156 days
Inbound Trend Duration: 202 days

Topped up on CAPE CIU at 254p, with a P/E of less than 7 going into 2011 its certainly very appealing.