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.

Broker Buy note out late yesterday, missed it at the time.

Cape PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
28-04-10 BUY 61.50 38.20 70.60 44.00

(hemscott premium)

Nice to see Arden Partners updating and joining the party.........

Cape PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Arden Partners
29-04-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00

Panmure Gordon
29-04-10 BUY 61.50 38.20 70.60 44.00

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 6.53

1 Month Change -0.01 0.00 0.00 0.01 -0.01 0.02
3 Month Change 1.40 1.37 6.00 -1.55 -0.11


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

Norm. EPS % % 11.87%
DPS % % 8.83%

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

EBITDA 6.00m 87.77m 95.60m

EBIT -12.70m m m

Dividend Yield % 2.38% 2.59%

Dividend Cover x 6.26x 6.44x

PER -31.48x 6.71x 6.00x

PEG f f 0.50f

Net Asset Value PS 46.71p p p

More or less on a December support resistance line.

At 230p we are looking at a forward P/E of less than 6 which to my mind is crazy. Way undervalued.

This stock is a giveaway at this price. Adding to my position.

2 Broker Buy notes out in the last couple of days and we are now down to a prospective P/E of just 5.4 going into 2011 which to me is completly stupid.

Dont forget we are in the Oil business services sector and should warrant at least a doubling of the present share price....................and still be cheap.

This stock is way undervalued and if we get the positive corporate news that is expected and refered to on most B/Boards then we could see a huge re- rating on this stock over the coming months (markets behaving)....

Cape PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
05-05-10 BUY 61.50 38.20 70.60 44.00

Arden Partners
04-05-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00

Broker Collins Stewart just appearing with a reiterated Buy .....

06-May-10 Cape CIU Collins Stewart Buy 235.75p 312.00p - Reiteration

312p target seems a bit stingy.

Looking for a big recovery today.

Lovely bullish chart pattern formed.........

Every broker following with a BUY recommendation. Not usually found a 'full pack' like that.

Having said that wiith a prospective P/E of just 5.4 going into 2011 they can spot hidden value.........

Cape PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
07-05-10 BUY 61.50 38.20 70.60 44.00
Arden Partners
06-05-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00
Collins Stewart
06-05-10 BUY 63.80 39.00 70.50 43.00
Eden Group
01-04-10 BUY
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 37.57 6.00 69.78 42.06 6.54
1 Month Change -0.01 0.01 0.00 0.03 0.04 0.02
3 Month Change 1.39 1.36 6.00 -1.52 -0.13


GROWTH
2009 (A) 2010 (E) 2011 (E)
Norm. EPS % % 11.95%
DPS % % 9.00%

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

EBITDA 6.00m 87.77m 95.60m
EBIT -12.70m m m
Dividend Yield % 2.61% 2.85%
Dividend Cover x 6.26x 6.43x
PER -28.70x 6.12x 5.46x
PEG f f 0.46f
Net Asset Value PS 46.71p p p

Still watching, still waiting.

Yep same here.

Cant see it staying this cheap for very long.

CIU CAPE PLC

Stonking following from Brokers.......all BUY recos......

trading update tomorrow....

Cape PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
18-05-10 BUY 61.50 38.20 70.60 44.00
Arden Partners
14-05-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00
Collins Stewart
06-05-10 BUY 63.80 39.00 70.50 43.00
Eden Group
01-04-10 BUY
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 62.03 37.57 6.00 69.79 42.06 6.54

1 Month Change -0.01 0.00 0.00 0.03 0.04 0.02
3 Month Change 1.39 1.39 6.00 0.80 2.06 6.54


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

Norm. EPS % % 11.95%
DPS % % 9.00%

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

EBITDA 6.00m 87.77m 95.60m
EBIT -12.70m m m
Dividend Yield % 2.67% 2.91%
Dividend Cover x 6.26x 6.43x
PER -28.11x 5.99x 5.35x
PEG f f 0.45f
Net Asset Value PS 46.71p p p

Interim Management and AGM Statement.

The Group is pleased to confirm that overall trading has been in line with the Board's expectations, with activity levels and operating margins remaining consistent with the same period in the prior year.

Activity levels in the Far East/Pacific Rim region are materially ahead of 2009, offsetting the expected lower activity levels in the Gulf/Middle East region this year following the high level of shutdown activity in the first quarter of 2009 and completion of a number of major projects.

There has been no significant change to Cape's financial position during the period with continued strong operating cash flows and substantial headroom available under the Group's funding facilities.

I dont trust the management here so I'm not an investor.

http://www.telegraph.co.uk/finance/newsbysector/supportservices/7746416/Questor-share-tip-Buy-Cape-catalysts-lie-ahead.html

Questor says BUY

Questor also recommended a buy at 258p in January and at 275p in March.

Questor continues to believe that the shares are undervalued. They are trading on a December 2010 earnings multiple of just 5.7 times. The company is also likely to start paying a dividend at its interim results and will probably move to the main board, with a potential inclusion in FTSE indices.

Revenues visibility in the current year is also standing at about 70pc. About half of Cape's revenues are based on essential maintenance spend of plant operators and the other half mainly based on large, multi-year duration industrial projects.

However, the shares have been essentially range-bound for the last nine months and they are currently at the bottom of this range.

What the company really needs to get the shares moving is some new major contract announcements in the second half of the year. Questor is confident that these contracts will come.

Yesterday's trading update contained no major surprises. There was a stronger performance in the Far East, including Australia, which offset the expected lull in the Middle East caused by the completion of a series of large projects.

The shares still appear undervalued and a number of catalysts lie ahead.

For this reason, Cape remains a buy.

CIU(208.75p) View from the Independent(Buy):-

21/5/10

CAPE

Our view: BUY

There was good news from energy services group CAPE 's Interim management statement yesterday, which was published to coincide with its AGM. Trading has been in line with forecasts over the last year, and the board is similarly confident about the year ahead pointing out that with half the group's revenues from essential maintenance spending, and the other half mainly from multi-year contracts, Cape has an unusually clear view of future revenues.

Its global portfolio is also a big help, with strong performance from the Far East/Pacific Rim businesses offsetting lower activity levels in the Middle East due to the completion of a number of major projects in the region last year. Martin May, the chief executive, described performance as "a solid start to the year" and we can't disagree.

Cape's stock has rocketed since the post-Lehman market slump, soaring to pre-crisis levels by last September although seeing some volatility since. But the group's financials are in good shape: with net debt set to fall below 70m, it will leave the forward net debt-to-earnings ratio at 0.8 times, according to Panmure Gordon.

With defensive=looking revenues, and at a time of increasing contract wins, we see a compelling investment case. BUY

Pro TAer Zak Mir posted the other day.......

Zak Mir



Reged: 28/06/07
Posts: 1294
Re: CAPE (CIU)
#465243 - 20/05/10 07:35 AM Edit Reply Quote



There has been an extended post August consolidation for CIU either side of that month's intraday high of 235p. While 200p - 210p support holds 270p plus is expected on a 2 - 3 month timeframe

Careful with this gf.

Just gone long on these @212.95

Chart looks strong.

I understand that Cape is primarily involved into the gas and oil service industry. Any ideas on the likely effect of the BP oil disaster? Good,bad or otherwise

Bid rumours for CIU per FT Alphaville today:

http://ftalphaville.ft.com/blog/

"have a bit of RAW
RAW is market chatter information that has not been formally tested through traditional journalistic channels (PRs etc). The story might be complete rubbish, but if we believe there is some substance to it we will say so. Either way, Reader Beware.
NH apparently
PM ooooh
PM
NH someone could be stalking Cape
Cape PLC (CIU:LSE): Last: 201.75, up 0.25 (+0.12%), High: 202.25, Low: 201.00, Volume: 1.11m
BE Hm.
NH been some decent volume recetly
PM any names in the frame?
NH not yet
NH working on that"