Interim Results

22 August 2017

Cape plc
(‘Cape’ or ‘the Company’, and together with its subsidiaries, the ‘Group’)

Interim Results

Cape plc (CIU.LN), an international leader in the provision of critical industrial services to the energy and natural resources sectors, announces its unaudited half-year results for the period ended 2 July 2017.

Strong trading performance and financial results in challenging market conditions

Financial summary

H1 2017 H1 2016 Change
Financial highlights:
Continuing operations:
Revenue £581.9m £396.3m +46.8%
Adjusted operating profit £42.7m £18.9m +125.9%
Adjusted operating profit margin 7.3% 4.8% +250bps
Adjusted profit before tax £39.2m £14.9m +163.1%
Adjusted diluted earnings per share 24.7p 8.9p +177.5%
Interim dividend per share - 4.5p -
Adjusted net debt £76.4m £113.7m (32.8%)
Statutory results:
Revenue £581.9m £396.3m +46.8%
Operating profit £37.6m £6.8m +452.9%
Profit before tax £32.9m £1.4m +2,250.0%
Diluted earnings per share 19.8p 0.2p +9,800.0%

Throughout this document, various management measures are used and referred to as adjusted. These are defined and reconciled to statutory measures within note 6 ‘Adjusted measures’ and within “Adjusted operating and free cash flow’ on page 9.


  • As anticipated, the Group delivered a strong trading performance in the first half of 2017:

- UK margins increased, driven by an improved commercial performance and the benefit of the restructuring undertaken in 2016

- Middle East operating margins were significantly lower, driven by increasing pricing pressure and mix of services with lower activity levels for higher margin access work

- The Asia Pacific region achieved both excellent operational performance and a significant increase in project activity

  • Robust cash performance leading to lower adjusted net debt of £76.4m (31 Dec 2016: £80.4m, 3 July 2016: £113.7m):

- Strong adjusted operating cash flow of £38.6m (H1 2016: £13.8m) reflecting good working capital management and a temporary benefit at the period end from the timing of certain customer receipts

- Partially offset by the April payment of the £18.0m insurer product liability claims settlement announced in March 2017

  • Robust order intake, up 85% to £572m (H1 2016: £309m) leading to a closing order book at 2 July 2017 of £902m
    (31 December 2016: £918m)
  • Continued strong safety performance
  • The Board’s expectation for the Group’s full year performance remains unchanged, with the balance of earnings weighted strongly towards the first half
  • Recommended all cash Offer of 265 pence per share from Altrad made on 1 August 2017; representing a premium of 46.2% on the closing share price prior to the announcement of the Offer
  • Given the timing and terms of the recommended cash Offer for Cape plc by Altrad, the Board has decided not to declare an interim dividend (H1 2016: 4.5p)

Commenting on the results, Joe Oatley, Chief Executive of Cape said:
“The Group has delivered a very strong operational and financial performance in the period. Revenue, operating profit, margins and cash conversion have all improved, reflecting operational excellence in the delivery of key projects in Australia and South Korea, and effective management of the Group’s working capital. The Group was also successful in securing strategic contract wins in the UK, with the renewal of the long-term maintenance contract with BP, and in Australia, with the award of an initial contract at the Ichthys onshore LNG project.

“The Board’s expectation for the Group’s full year performance remains unchanged with the anticipated reduction in construction related activities in Asia Pacific resulting in the Group’s earnings  being strongly weighted towards the first half of 2017. The Board continues to anticipate that 2018 will be a more challenging year, driven by the expected reduction in volume from the current high level of construction activity in Asia Pacific and the effect of project delays and margin pressures in the Middle East.”

Analyst meeting
The Group will be presenting to a meeting of analysts at 10.30 a.m. today at the office of Buchanan, 107 Cheapside, London, EC2V 6DN. The presentation will shortly be available on the Company's website at:


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 33 of the 2016 Annual Report and Accounts.

About Cape:
Cape (, 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, 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.


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