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.

Hopefully we will move north in the morning.
cheers GF.

gf nice pick dont you think most of the gains have already been done ie 100% in a year cant see this happening now ie,didnt read your posts thoughly but i dont think you mentioned the big contracts that they have tendered for,more news should be in the results by the way i hold these shares showing over 100% rise since last year i intend to hold for long term the other thing you did not write is that it is listed on aim so any gains if held for long term will be tax free.cheers woodie

Although down slightly today woodie I expect these to just keep running and running north, nothing spectacular and I feel you are right we will get news of new contracts within the results statement.

Well done on yor investment so far but I think theres far more to come especially on the lowly forecast P/E for 2005.

cheers GF.

gf i put these in the same bracket as asos any dips are buying opportunities,agree with you more upside to come that is why iam not considering selling at the moment.cheers woodie

Trouble is Woodie you normally find a lot of investors usually find companies like this boring, but as Peter lynch the great US fund manger says the more boring the better.

Rather be in a slow climber than a 'jack in a box' share.

cheers GF.ps, might add a few more.

gf you wont go wrong buying at this level the upside will gather pace when co returns to divi list which i expect in the next year.as you said boring but my sort of stock not living on fantasy cash co.cheers woodie

Well said Woodie I like it.

cheers Gf.

Buyers starting to return after profit taking.

cheers GF.

No move up in price yet but I expect one.

cheers Gf.

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.

cheers Gf

gf just received my copy of shares a exclusive piece on cape page 29 which states big contract should be signed soon no i didnt write the piece as i posted this early in the week.agree with you price will move up on positive news which wont be that long in coming.cheers woodie

Thanks for that Woodie, will have to get a copy.

cheers Gf.

gf no new news in it save your money apart from the deal is worth 60 million pound being the largest single deal the co has done.if they get contract will be of japan.the rest of article is already known in market ie co cheap still not overvalued.cheers woodie

Up 6p this morning and buyers returning. Is way undervalued.

cheers Gf.

gf looks like it is just you and me that want to make easy money as noone else seems intersted in this stock.cheers woodie

I think they will over the comming weeks woodie. A very good day with some nice volume. Way undervalued.

cheers GF.

52 week high hit today aswell and trading on a historic p/e of just over 7 falling down to concensus broker figure of forward P/E of just over 6.

Excellent value.

cheers GF.

gf its been hitting 52 week highs all this year thats when i topped up,disappointing that it is just me and you after all the trouble you went to,there loss, if you see the threads on this board that are well posted ie epo etq tad are all duff stocks,most are lossing money.expect another leg up when deal is announced.cheers woodie

Poor start to the day Woodie but when due day for results are announced I expect these to motor.

cheers Gf.

gf cant find telephone no for co,was going to ring for date if known for results any ideas.cheers woodie ps not much selling on down day which is positive.