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.

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.

Schroders > 5%

Wierdiest chart Ive come across.

Hadn't seen this chart before! - Love your 'mind the gap' Skinny!

On 6 December 2012, Mr Michael Speakman was appointed Chief Financial Officer. He purchased 24,906 Ordinary Shares at a price of £2.008 pence per share. - Good sign.

Toya - I've used it for years - ingrained in me from too many years commuting! :-)

Not totally relevant, but as I'm looking to go long here, I'll post it anyway!


Oil and gas 'jobs boom' forecast for North Sea

A new forecast for the UK's oil and gas industry has suggested a "boom" this year in offshore jobs as North Sea oil continues to experience growth.

Oilandgaspeople.com, a recruitment firm specialising in the energy sector, has said that between 40,000 and 50,000 new jobs could be created.

It also predicted the onset of shale gas exploration would boost prospects.

I've gone long here today - the timing wasn't great, but hopefully some upside.

From Friday.

Cape secures extension to SABIC contract

BNY Norwich Union Nominees Limited > 3%

Gone long with you guys.

Shorters starting to buy back
from the january high........

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