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.

Beat me to it skinny.

Volume is way up.

Heres todays Broker forecasts from hemscott premium, a full list of Buys which is rather rare.................. 2011 P/E of just 4.8 little wonder its attractive on such a cheap rating.....

Cape PLC

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

Panmure Gordon
16-06-10 BUY 61.50 38.20 70.60 44.00

Arden Partners
15-06-10 BUY 61.13 37.30 6.00 69.18 41.70 7.00

Eden Group
03-06-10 BUY

Numis Securities Ltd
21-05-10 BUY 62.00 37.20 6.00 68.70 41.40 6.00

Collins Stewart
20-05-10 BUY 63.80 39.00 70.50 43.00

Evolution Securities Ltd
20-05-10 BUY 62.70 37.50 66.50 39.40

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

Consensus 62.06 37.56 6.00 69.75 42.03 6.51

1 Month Change -0.01 0.00 0.00 0.29 -0.01 0.01
3 Month Change -0.00 -0.00 0.00 -0.00 -0.00 0.01


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

Norm. EPS % % 11.90%
DPS % % 8.55%

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

EBITDA 6.00m 87.77m 95.60m

EBIT -12.70m m m

Dividend Yield % 2.98% 3.23%

Dividend Cover x 6.26x 6.45x

PER -25.17x 5.36x 4.80x

PEG f f 0.40f

Net Asset Value PS 46.71p p p

Well if Broker targets are a way to judge the take Out price you would be looking at a minimum of 350p as per Panmures SP target.

Date Broker name New Price Old price target New price target Broker change

20-May-10 Panmure Gordon Buy 205.00p 350.00p - Reiteration

06-May-10 Collins Stewart Buy 237.00p 312.00p - Reiteration
A 350p and 312p SP target.

now up over 10% on day. Something going on

Well at the lowly P/E of just about 5 to 2011 I wouldnt be suprised that rumours of a takeover materialise.

and here is the confirmation

17 June 2010



For immediate release





Cape plc



("Cape" or "the Company")





Cape notes the recent rise in its share price. It confirms that it recently received a very preliminary approach from a third party which may or may not lead to an offer for the company.





- Ends -





For further information please contact:





Cape plc



Martin May, Chief Executive Officer



Richard Bingham, Chief Financial Officer



Tel. +44 (0)20 3178 5498





Numis Securities Limited



Nominated Adviser: John Harrison, Managing Director Corporate Finance



Corporate Broker: James Serjeant, Director Corporate Broking



Tel. +44 (0)20 7260 1000





Merrill Lynch International



Andrew Tusa, Managing Director Corporate Broking Europe



Tel. +44 (0)20 7628 1000





M: Communications



Patrick d'Ancona or Ben Simons



Tel. +44 (0)20 7920 2340

Superb.

Wonder what we will open at in the morning?????.

from the FT:

http://www.ft.com/cms/s/0/32cd3190-79e3-11df-9871-00144feabdc0.html

SMALL CAPS: Cape rises on bid approach

Cape advanced 12.9 per cent to 227p in heavy trading on talk that it was being stalked by a predator, write Neil Hume and Matthew Kennard.

After the close the industrial services group confirmed that it had recently received a very preliminary approach.

Traders said Capes long-term contracts made it a potential target for a private equity bid at a price of at least 300p a share

Up nicely this morning, hoping we get to know a bit more about this bid.

Rumoured to be 3i. Price offer of c300p, expected to be rejected as too low.

Broker note from Panmure Gordon:
"Despite its prospects Cape has not managed to sustain a credible valuation rating. As a result the high returns have attracted the intentions of what we presume to be a private equity bidder. In our view private equity could pay 300 325p per share. Cape has a valuable position in ROW markets, nuclear and rig decommissioning work; however and with synergies trade could pay as high as 400p.
Capes valuation (sub 6.0x PE, and sub 4.0x EV/EBITDA) has become depressed
enough to attract the attention of an early stage bidder. At yesterdays closing EV, and accordingly to our private equity return model, it offered a 5 year CAGR return of 26%.
With some pick-up in new projects, and then considering its capability in offshore rig decommissioning and in the nuclear sector, then returns can be higher.
We speculate that private equity can pay 300p-325p per share for Cape (offering a return of 13-15%. Trade buyers such as Bilfinger or Harsco Corp would be expected to pay another 60p per share to account for 10m in forecast cost synergies."

Invesco Limited have disclosed a 1.38% interest

FOUR Capital Partners Limited disclosed 3.21%

I've just sold half for +42 - so it will probably rocket now.

Schroders 3.96%

Hansa Trust 1.25%

Sell CIU back to 190p...


Cape plc

("Cape" or "the Company")

On 17 June, Cape announced that it had received a very preliminary approach from a third party that may or may not lead to an offer for the Company.

Cape announces that, following subsequent discussions with that third party, all talks have now been terminated by the Company. As required by the Takeover Panel, the third party has confirmed to Cape that it is no longer actively considering making an offer for the Company and, accordingly, Cape is no longer in an offer period for the purposes of the Takeover Code.

Bid off.

All those wild speculations a few days ago...


Analysts speculated on the identity of the possible bidder, with private equity and trade buyers such as Bilfinger Berger or Harsco Corporation both mentioned. Oliver Wynne-James at Panmure Gordon said:

Despite its prospects Cape has not managed to sustain a credible valuation rating. As a result the high returns have attracted the intentions of what we presume to be a private equity bidder. In our view private equity could pay 300-325p per share. Cape has a valuable position in [worldwide] markets, nuclear and rig decommissioning work; however and with synergies trade could pay as high as 400p.

Sell CIU as global spending cuts will see it sub 100p.

197.5p now.