Cape plc AGM Statement (6586E)
May 10 2017 - 2:00AM
UK Regulatory
TIDMCIU
RNS Number : 6586E
Cape plc
10 May 2017
10 May 2017
Cape plc
("Cape" or "the Company", and together with its subsidiaries,
the "Group")
AGM Statement
Cape plc (CIU.LN), an international leader in the provision of
critical industrial services to the energy and natural resources
sectors, today issues the following AGM Statement, incorporating
the first quarter's results from
1 January 2017 to 2 April 2017.
Trading for the first quarter of 2017
As expected, the Group delivered a strong trading performance in
the first quarter, largely driven by increased project volumes and
excellent operational performance in the Asia Pacific region. The
Group order book at the end of the first quarter was GBP797m (31
December 2016: GBP918m) with the reduction from the prior year-end
being largely driven by the timing of key contract awards. The
Group anticipates securing a number of significant prospects in the
second quarter of 2017.
Overall, Group operating margins were in line with expectations
with the robust performance in Asia Pacific offsetting lower
margins in the Middle East, where, as expected, the business
experienced increased pricing pressure. UK margins were in line
with expectations.
Outlook
The UK North Sea and coal power generation sectors continue to
be challenging, with reducing demand and increasing pricing
pressures, while the general industrial and downstream sectors
remain solid. Despite these mixed market conditions, the UK
business is expected to deliver improved margins compared to the
prior year due to a combination of improved contract performance
and the benefit of the restructuring carried out in 2016.
As previously highlighted, market conditions in the Middle East
region are challenging with a number of new projects being deferred
and increasing pricing pressure. Nonetheless, bidding activity
remains high and the business is expected to deliver a solid
performance in 2017, largely driven by increasing volume on
existing projects in the Kingdom of Saudi Arabia and Kuwait.
As previously disclosed, activity levels in the LNG sector in
the Asia Pacific region are expected to be materially higher in the
first half of the year, leading to a strong first half weighting to
earnings for the region in 2017. The business continues to target
project activity across the region to mitigate the effect of the
expected volume reduction in the second half of the year.
The Board's expectation for the Group's full year performance
remains unchanged, with, as anticipated, the balance of earnings
weighted toward the first half.
Cape expects to announce its results for the half year ending 2
July 2017 on 22 August 2017.
- End -
Enquiries
Cape plc +44 (0) 1895 459 979
Joe Oatley, Chief Executive
Michael Speakman, Chief Financial Officer
Ian Wood, Head of Investor Relations
Buchanan +44 (0) 207 466 5000
Bobby Morse, Ben Romney, Chris Judd
This announcement contains inside information.
Forward-looking statements
Certain statements in this document are forward looking. By
their nature, forward looking statements involve a number of risks,
uncertainties or assumptions that may or may not occur and could
cause actual results or events to differ materially from those
expressed or implied by the forward-looking statements. Such risks,
uncertainties or assumptions could adversely affect the outcome and
financial effects of the expectations, beliefs, hopes, plans,
intentions, strategies and events described herein. Therefore,
forward-looking statements contained in this document regarding
past trends or activities should not be taken as representation
that such trends or activities will continue in the future. You
should not place undue reliance on forward-looking statements,
which are based on the knowledge and information available only at
the date of this document's preparation. For a description of
certain factors that may affect Cape's business, financial
performance or results of operations, please refer to the Principal
risks on page 34 of the 2016 Annual Report and Accounts.
About Cape:
Cape (www.capeplc.com), which is premium listed on the main
market of the London Stock Exchange, is an international leader in
the provision of critical industrial services principally to the
energy and natural resources sectors. Our multi-disciplinary
service offering includes access, insulation, engineering and
specialist coatings and fireproofing, environmental services, heat
exchanger replacement and refurbishment, storage tanks and
refractory. In 2016, Cape employed c.16,100 people working across
23 countries and reported revenue of GBP863.5 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMUKUNRBBAVRAR
(END) Dow Jones Newswires
May 10, 2017 02:00 ET (06:00 GMT)
Cape PLC (LSE:CIU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cape PLC (LSE:CIU)
Historical Stock Chart
From Apr 2023 to Apr 2024