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.

Late Peter Hippy said to me once......." mick if theirs any doubt stay out".

Words of wisdom. Appreciated.

"Perils of the smaller contracting business
The valuation looks compelling....in any other market"
Commentary at http://www.investorschampion.com/research/company/cape/

Appointment of Group Chief Executive Officer

Cape plc, the international provider of essential, non-mechanical support services principally to the energy and mineral resources sectors, is pleased to announce the appointment of Joe Oatley as Group Chief Executive Officer with effect from 29 June 2012.

Joe joins Cape from Hamworthy plc, a global engineering business serving the oil & gas industry. Joe joined Hamworthy as Chief Executive in 2007 and led the group until its recent takeover by Wartsila. Prior to this his experience was predominantly in the engineering sector in a variety of roles including managing director, in strategy development and acquisitions.

Concurrent with Joe's appointment as CEO, Brendan Connolly will step down as acting CEO and be reappointed as a member of the Audit, Remuneration and Nomination Committees with effect from the same date.

In addition, further to David McManus' decision to stand down from the Board as a Non-executive Director once a suitable replacement is found, as announced on 31 August 2011, the Board has appointed Brendan Connolly as Chairman of the Remuneration Committee and Michael Merton as Senior Independent Director, both appointments being with effect from 29 June 2012.

Tim Eggar, Cape's Chairman, commented: "I am delighted to welcome Joe to Cape and believe his background in the sector and track record with Hamworthy make him the perfect appointment to take Cape into the next stage of its development. I would also like to thank Brendan for his huge contribution as acting CEO, both for the continuity he has provided and the extent of his efforts in recent weeks."

Joe Oatley commented: "Cape has an established position as a global leader in providing mission critical services to the energy and mineral resources sectors. I am excited to be joining the business and look forward to building on the core strengths of the group to deliver long term value to shareholders."

Joe is a former director of Hamworthy plc. In accordance with the UK Listing Rules, the Company confirms that there are no further details that are required to be disclosed under paragraph LR 9.6.13 R of the UK Listing Rules in respect of Joe Oatley.

- Ends -

Trading Update

The trading performance of Cape's Onshore business unit in Australia (reported as part of Cape's Far East/Pacific Rim Region) deteriorated sharply in the second quarter. Following a review of this business, it has become clear that the trading performance for the Far East/Pacific Rim Region for the remainder of the year will be well below management's previous expectations. Lower revenue, combined with increasing pricing pressure, has led to operating margins being significantly lower than previously expected. With delays in major project work in Australia now apparent, no improvement in activity levels is expected in the near term. A review of the region's business structure is now underway and an initial overhead cost reduction plan has been implemented. Management now expects revenue from this region for the year to 31 December 2012 to be slightly less than that of 2011 and operating margin, before the impact of any restructuring, to reduce to approximately half of 2011 levels.

In the Far East/Pacific Rim, the Group is more exposed to the construction support services cycle than in other more mature regions in which Cape enjoys leading market positions, underpinned by a solid maintenance support services base with multi-year contracts. Whilst capital spending in the Far East/Pacific Rim region is expected to benefit Cape strongly over the medium term, the timing of work releases on the major projects remains uncertain.

The deterioration in performance in the Far East/Pacific Rim Region will have a significant effect on overall Group performance in the near term. The Group is therefore unlikely to meet previous expectations for the year to 31 December 2012 and, whilst steps are being taken to restructure the region's business unit, the challenging conditions in the Far East/Pacific Rim Region are expected to persist into 2013.

The UK Region continues to trade strongly supported by long term maintenance contracts. Activity levels in the Middle East show good growth albeit at lower margins. In the CIS & North Africa Region activity levels remain robust and the one off charge previously announced in respect of the GL3 Z LNG project in Arzew in Algeria is expected to remain sufficient.

Cape will report results for the six months ended 30 June 2012 on 30 August 2012.

-Ends-

And down 43.1% at open.

Could fall to 100p imo.

Half Yearly report

Highlights

• Revenue growth of 9.8% CER with growth in our three largest regions. Underlying organic growth of £23.0m (6.9%)

• H1 operating profit impacted by operational weakness on the Arzew project in Algeria and margin reduction in the onshore business in Australia

• UK revenue increased by 9% to a record £148m, excluding acquisitions, driven by additional offshore maintenance work for North Sea operators

• Completed acquisition of Hong Kong Fuji Technology Co., Ltd ("HFT") in Hong Kong for a consideration of HKD 58m (£4.75m) in March 2012, establishing a position in the maintenance market in this region. All three acquisitions made in the last 18 months have performed in line with, or ahead of, expectations

• Substantial forward order book at 30 June 2012 of £920m (H1 2011: £830m)

• Comprehensive business review of Far East/Pacific Rim operations underway

• Interim dividend maintained at 4.5p per share (H1 2011: 4.5p)

That's a funny ol' graph skinny! Along with your new 'ladle' pattern, I think you should have a go at this one.

Harry :-)

It looks like a cascade pattern - which, btw, is (I think) already a known pattern.

Joking aside, I thought it may fall again, although the dividend has been maintained - worth watching!

In auction +19.4%

Investors in energy services group Cape (LSE: CIU.L - news) have had a roller-coaster few years, but things have been particularly difficult of late. Since November 2011, the group has issued three profit warnings.

This followed a sharp recovery since the financial crisis, when the shares slumped on concerns Cape may not be able to service debt. However, last week there was finally some good news from new chief executive Joe Oatley, who joined in June. The shares soared by 20pc after the company confirmed it would meet the lowered expectations in the current financial year.

= Good news on Cape dividend =

Cape provides scaffolding, insulation and painting services to the oil and gas and power industries.

Cape’s interim numbers were significantly below last year’s figures, following a £14m provision for a contract that went wrong in Algeria. This was the subject of its profits warning in May. In the six months to June, revenues rose 11pc to £371.6m, with pre-tax profits slumping 70pc to £9.9m.

Reassuringly, the interim dividend was maintained at 4.5p. Some thought it may be trimmed. Based on current forecasts, the prospective yield is 6.3pc.

= Bad news is now out =

The market was relieved that there was no further bad news.

The implication is that after the group’s third warning at the end of last month, Mr Oatley has “kitchen sinked” all bad news into the market after a review of the group’s operations worldwide.

The current order book stands at a healthy £920m. This is only a 2pc fall since December 2011 and, with the group highlighting a slowdown in the Middle East, this looked fairly positive, given the tough backdrop. For 2013, £307m of work has been secured, which is on track for this stage of the year.

= Focus on new contracts =

The last profit warning related to a slowdown in Australia, where there had been high hopes that Cape could win significant contracts for liquefied natural gas (LNG) projects.

This is still a possibility, but should not be taken for granted. The company is currently reviewing its Far East business, which should help with costs.

Trading on a December 2012 earnings multiple of 8.8, falling to 6, the shares are undoubtedly cheap.

The new management has to tighten up the controls and win more contracts. But, since the bad news appears to be all out, the shares are a buy again.

..

Cape establishes joint venture in Kazakhstan

Cape plc, the international provider of essential, non-mechanical support services to the energy and mineral resources sectors, announces the establishment of a new Joint Venture, 'Cape Caspian LLP', in Kazakhstan. The joint venture is jointly owned by Cape and the Lancaster Group, a highly reputable private company consisting of several divisions operating in different sectors of the Kazakhstan economy including the energy, oil services and mining sectors, where Lancaster has a number of international partners.

Cape has operated successfully in Kazakhstan for over twelve years. One of its clients, ERSAI Caspian Contractor, a Lancaster Group and Saipem joint venture based in Mangystau region, is among the biggest contractors for Kashagan oilfield development, one of the largest oil discoveries in recent history. By building on the strong local presence of Lancaster Group, the Cape Caspian joint venture will expand the range of opportunities for Cape in the growing Kazakhstan market.

UBS Initiates/Starts Buy TP 320p.

Interim Management Statement

For the three months ended 30 September 2012 Cape delivered year-on-year revenue growth of 6% driven by higher activity levels primarily in the CIS and Gulf/Middle East regions, partially offset by lower activity levels in Australia.

The trading performance of the Group's businesses in the UK, CIS/Mediterranean & North Africa and Gulf/Middle East regions and Asia was in line with expectations. However, the Group's operating margin was impacted by a substantial deterioration in the performance of the Group's onshore Australian business driven by both a further downturn in current trading and the recognition of a number of legacy issues. As part of the previously reported review of the Group's Australian operations, a detailed review of the onshore Australian business' balance sheet was initiated which has led to the identification and correction of a number of issues relating to the valuation of certain balance sheet items. This review is expected to be complete before year-end; until then there remains some uncertainty over the full year performance for this business.

A 30% fall not good.

What's wrong with the statement today... not too bad imo.

Strong buy at 171p

180p now... still super cheap... BUY now.

Mind the gap.

Mind the gap..lol.