Cape in line with expectations

Cape, the international provider of critical industrial services to the energy and mineral resources sectors, says overall trading remains in line with the board's expectation. The company's interim management statement says that the UK, Europe and CIS region continues to deliver a steady performance and it is particularly pleased with the strong contribution from the newly-formed Cape Specialist Services business. Prospects in Azerbaijan are improving with workload for the SOCAR Cape joint venture expanding on both maintenance and new project work. Activity in Kazakhstan remains materially lower than historical levels with the timing of major new projects unclear. It continues: "The performance of the MENA region remains robust across the three major countries driven by demand from the construction market in the Kingdom of Saudi Arabia, a strong margin performance in the Qatar business and success in securing small project and recovery works in the UAE. The onerous contract in Qatar remains challenging but the project team continues to make good progress and we anticipate delivering our works in line with the client's requirements.

"The Asia Pacific region performance is mixed. As previously highlighted, there has been a slower ramp up on the Wheatstone project in Australia than originally forecasted but workload is now increasing with approximately 140 employees now mobilised on site. Maintenance activities in Australia remain subdued. Overall, the performance across Asia has remained steady with strong margins in the Philippines and Thailand offsetting a weaker performance in Singapore and Hong Kong.

"At the end of October the Group order book was £636 million (29 June 2014: £643 million). Bidding activity remains high across all regions and the MENA region, in particular, has continued to benefit from a strong order intake. As previously indicated, the UK orderbook is impacted by the timing of key maintenance contracts which are expected to be renewed during the next quarter."


At 9:11am: (LON:CIU) Cape PLC share price was -4.5p at 277.25p



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