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.

195p...why is CAPE falling?

Good company but came out with a statement yesterday about net debt which of course today is everything.

Net debt was down but the market has taken very badly to it. Currently down 54%.

Also Panmure Gordon has reiterated a SELL on CIU. Get out of this. 88p as I write.

Wow...good thing I sold out of Cape at 210p suffering a small loss.

The net debt looks very worrying. It does not reassure investors in spite of directors comment. 80p at the moment.

70p not 80p!

The net debt looks very worrying. It does not reassure investors in spite of directors comment. 70p at the moment.
Cape has a ton of brick tied to it now. Thank you for the update. 70p

;-0

Cash flowing, debt looks manageable but there is no dividend and when can shareholders really hope to start reaping any rewards

Note on www.investorschampion.com

Market cap is approx 73m and the group has net tangible assets with a book value of 58m; the debt holders receive over 30m each year in the form of interest and repayments; payments for industrial diseases consume several million pounds each year; the group has 11,000 plus employees and if that isnt enough there is always 129,000 tonnes of access equipment that needs replacing.

But lots of positives in form of order book, UK power generation exposure and loads of 'potential' in LNG in Aus

Traders stock?

;-))

Some good news today. Also a good write-up in the weekend's newspapers, specifically mentioning the debt repayment situation. Could CIU be one acquisitive company that can pay down what it's borrowed for bolt-ons?

I'm holding for now at the riskier end of the SIPP. ;-0

You must work in Health and Safety or such to classify this as at your riskier end of your SIPP !

;-))))

Gone long on CIU CAPE, never thought Id get the opportunity to get in at less than 100p going forward.

Now there is a case here for predicting a bagger IMHO.

Way too cheap and a quality management and company.

Cant believe it dropped so low in the first place.

People are starting to take profit now. It has risen by 200%. It will go down.

Ahhhhhhhhh but are you looking below the surface at the fundies.

derd cheap and a lot of fund managers will have picked up on that even though there may be a bit of profit taking going on at present.

Derd cheap on a fundies basis.

don't worry GF. I agree with you and you're bound to be right simply because justyi is bound to be wrong.

I refer you to justyi's comments on the POG thread.

Brokers like it aswell.......

Cape PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
16-04-09 BUY 40.12 24.82 38.57 23.66

Eden Group
03-04-09 BUY

Evolution Securities Ltd
01-04-09 ADD 43.40 28.00 44.20 28.90

Collins Stewart
20-03-09 BUY 32.10 35.90

Numis Securities Ltd
19-03-09 BUY 54.00 32.90 54.00 32.90

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 41.72 30.02 0.00 44.20 30.87 0.00

1 Month Change -0.03 -0.04 0.00 0.00 -0.03 0.00
3 Month Change -1.68 -0.77 0.00 17.49 4.41 0.00


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -3.38% 18.16% 2.83%

DPS % % %

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA m 78.89m 79.19m

EBIT m m m

Dividend Yield 0.00% % %

Dividend Cover x x x

PER 3.74x 3.16x 3.08x

PEG -1.11f 0.17f 1.09f

Net Asset Value PS p p p

We have lift off...........passed the 100p mark

moved out at 102 fortnight ago nearly retempted at 94 but in price was 90 may have to reasses as will keep flying!