Cape (CIU) swung back into the black in 2013. The previous year's headline loss of £143m was brought about by £150m in exceptional items, linked to a divestment and re-structuring programme that reduced group overheads by more than 50 per cent. By contrast, Cape booked a relatively modest charge of £15.5m in 2013, as the energy services provider restructured its operations in Australia. A better gauge of the group's progress may be the 47 per cent increase in its operating profits, before exceptional items, to £25m.
That came despite falling sales. Cape's top line suffered from the completion of a number of major projects in the first half, including the SPT project in Singapore, as well as from deteriorating market conditions in Kazakhstan and the Asia Pacific. Matters weren't helped by delayed receipts from both the oil and gas and mining industries, as companies took time out to re-assess their forward capital commitments.
Mercifully, the fall-away in activity was partially mitigated by continuing expansion in the Middle East and UK offshore markets. Cape is hoping to capitalise on its improved showing in the North Sea with the recent £38m acquisition of Scottish engineering firm Motherwell Bridge. Near term, Cape is confident that the volume of service contracts will increase, as a number of oil and gas projects reach the late development stage where Cape's specialist services are required.
Broker Canaccord expects 2014 adjusted EPS of 30.7p.
| CAPE (CIU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 309p | MARKET VALUE: | £374m | |
| TOUCH: | 305-309p | 12-MONTH HIGH: | 335p | LOW: 223p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | na | |
| NET ASSET VALUE: | 108p* | NET DEBT: | 45% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 655 | -15.6 | -4 | nil |
| 2010 | 650 | 63.1 | 43 | 12 |
| 2011 | 698 | 61.9 | 40 | 14 |
| 2012 (restated) | 737 | -143.0 | -137 | 14 |
| 2013 | 697 | 0.2 | -2 | 14 |
| % change | -5 | - | - | - |
Ex-div: 7 May Payment: 6 Jun *Includes intangible assets of £114m, or 94p a share | ||||
