CIU Cape

TIDMCIU

RNS Number : 0271H

Cape plc

14 May 2014

14 May 2014

Cape plc

("Cape" or the "Group")

Interim Management Statement

Cape plc, the international provider of essential support services to the energy and mineral resources sectors, today issues the following Interim Management Statement for the period 1 January 2014 to date, incorporating the first quarter's results from 1 January 2014 to 31 March 2014.

Trading

The Group's overall trading for the first quarter was in line with the Board's expectations.

The UK, Europe and CIS region has performed as expected with strong volume in the UK onshore market offsetting lower than anticipated volume in the UK offshore market and very low levels of project activity in Kazakhstan following the completion of Cape's work associated with the Kashagan project. Constructive discussions are ongoing with Cape's partner in Azerbaijan regarding the commercial structure of the joint venture and the business is now actively bidding for a number of significant new construction projects within the country. It is likely that the joint venture will require a material investment during the year in support of both existing and future projects. The acquisition of Motherwell Bridge, announced in March 2014, is performing as expected and the integration is progressing to plan.

The MENA region achieved strong order intake in the first quarter driven by the award of a number of construction projects in Saudi Arabia and the renewal of key term maintenance contracts in Qatar. Revenue and operating profit exceeded expectations with strong growth compared to the prior year in both Qatar and Saudi Arabia. The previously announced onerous contract in Qatar continues to perform in line with the revised expectations. The project is still in its initial stages, with a significant increase in work load anticipated over the summer months.

Activity levels in the Asia Pacific region have been impacted by delays to the mobilisation of the Wheatstone contract in Australia and low levels of activity in Hong Kong prior to the renewal of the key term maintenance contract. The Wheatstone project is now mobilising and volumes are expected to ramp up through the year. Cape was awarded the renewal of the main maintenance contract in Hong Kong at the end of March.

The Group order book, as at the end of March, is GBP84m higher than the 2013 year end position at GBP732m (31 December 2013: GBP648m), with particularly strong order intake from the MENA region. Bidding activity remains high across the Group but particularly in the MENA and UK, Europe and CIS regions.

Outlook

Market conditions remain mixed across the Group's regions, with strong demand in the MENA region offsetting low levels of demand for construction in the CIS and Asia and maintenance in Australia. The UK market remains at similar levels to 2013.

Given the steady performance in the first quarter, the current view of market conditions and the operational progress of the business, the Board remains confident that the business overall is on track to deliver in line with expectations for the year ending 31 December 2014.

Financial calendar

Cape expects to announce its results for the half year ending 30 June 2014 on 27 August 2014.

Enquiries:

Cape plc

   Joe Oatley, Chief Executive                    +44 (0) 1895 459 979 
   Michael Speakman, CFO                        +44 (0) 1895 459 979 
   Buchanan                                              +44 (0) 207 466 5000 

Bobby Morse, Ben Romney, Louise Mason

Forward looking statements

Any forward looking statements made in this document represent the Board's best judgment as to what may occur in the future. However, the Group's actual results for the current and future financial periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the Group. Such factors could cause the Group's actual results for future periods to differ materially from those expressed in any forward looking statements included in this announcement.

About Cape:

Cape plc (www.capeplc.com), which is premium listed on the main market of the London Stock Exchange, provides a range of non-mechanical industrial services including access systems, insulation, coatings, refractory linings and a range of specialist services including environmental services and storage tank construction and maintenance to both industrial plant operators and major international engineering and construction companies.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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