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.

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.

JOINT VENTURE WITH STATE OIL COMPANY OF AZERBAIJAN


RNS Number : 6090O
Cape PLC
01 July 2010

For immediate release: 1 July 2010

CAPE PLC
("Cape" or the "Company")

CAPE ESTABLISHES JOINT VENTURE WITH STATE OIL COMPANY OF AZERBAIJAN

Cape plc, the international provider of essential, non-mechanical industrial
services principally to the energy and mineral resources sectors, is pleased to
announce the establishment of a Joint Venture with the State Oil Company of
Azerbaijan (SOCAR). The SOCAR-Cape JV, owned 51% by SOCAR and 49% by Cape, will
pursue opportunities associated with the future development of the oil and gas
sector in Azerbaijan.

The agreement was signed in Baku on 30 June 2010 by SOCAR President Rovnag
Abdullayev and Cape's regional director for CIS, Mediterranean and North Africa,
Guy Rackham.

Cape has been established in the central Asian Republic of Azerbaijan for over
ten years, both directly and through its acquisition of PCH in 2007. The
SOCAR-Cape JV will have the resources to meet the expected increased demand for
Cape's specialist non-mechanical services including access and insulation. The
Company believes there will be significant opportunities in the coming years
arising from new projects, maintenance and shutdown activities relating to the
continued development of the Azeri-Chirag-Guneshli oil project and Shah Deniz
gas condensate development project.

The establishment of this joint venture is in line with SOCAR'S strategy of
partnering with key contractors.

Martin May, Chief Executive of Cape plc, commented,

"We are delighted that SOCAR has chosen to enter into this joint venture with
Cape. Azerbaijan is a key country for the growth of Cape's CIS business owing to
its large oil and gas deposits and the significant investment in the region. A
partnership with the State oil company provides Cape with high level access to
major projects that will require our services. This is an exciting opportunity."

Let us hope that it is "exciting" enough to lift the price?

CAPE WINS ABU DHABI CONTRACT



TIDMCIU


Cape PLC
06 July 2010

Embargoed: 0700hrs, 6 July 2010

CAPE WINS ABU DHABI CONTRACT

BOROUGE PHASE 3 PETROCHEMICAL EXPANSION PROJECT

Cape plc, the international provider of essential, non-mechanical industrial
services principally to the energy and mineral resources sectors, has been
awarded a letter of intent valued at circa US$18 million to provide Thermal
Insulation Works on the Borouge Phase 3 petrochemical project in Ruwais, Abu
Dhabi. Cape has been operating in Abu Dhabi since 1979 and this award follows
Cape's successful completion of the Thermal Insulation Works on Borouge Phases 1
& 2.

The award has been made by Consolidated Contractors International Company and
Linde Engineering, the main Engineering, Construction and Procurement (EPC)
contractors for the construction of the ethane cracker.

The Borouge Phase 3 expansion will quadruple Borouge's polyolefins production
capacity at Ruwais to over 4.5 million tonnes per year by 2013, making it the
largest integrated polyolefins site in the world.

Borouge is a leading provider of innovative, value creating plastics solutions.
A joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the
world's major oil companies, and Austrian based Borealis, a leading provider of
chemical and innovative plastics solutions, the company's footprint reaches
across the Middle East, Asia Pacific, the Indian sub-continent and Africa.