Employer liability litigation settlement
10 April 2017
("Cape" or the "Company", and together with its subsidiaries, the "Group")
Employer liability (“EL”) litigation settlement
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 industrial disease claim update.
The Company has previously disclosed that it has been involved in litigation with Aviva plc (“Aviva”) in relation to historic insurer employer liability claims (“Insurer EL Claims”). Following the settlement of the insurer product liability claims that was announced on 13 March 2017, Cape announces that the Insurer EL Claims have been settled, with the current claims being withdrawn with no admission of liability and each party bearing their own legal costs.
Notwithstanding the Board’s continued belief in the strength of its position in relation to the trial conducted in January and February 2017 and in respect of the issues to be heard at the Court of Appeal in July 2017, and thus its recovery of all legal expenses incurred, the Board has concluded that it is in the best interests of Cape and its shareholders to settle this litigation. The settlement does not require any cash consideration to be payable by the Company and will require no material change in the existing IDC provision of £172.5m as at 31 December 2016.
This announcement contains inside information
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
Forward looking statements
Any forward looking statements made in this document represent the Board's best judgement as to what may occur in the future. However, the Group's actual results for the current and future fiscal 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. For details of the Group’s principal risks and uncertainties, please see pages 18 to 25 of the Group’s 2015 Annual Report and Accounts.
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 £863.5 million.