Energy sector support services provider Cape enjoyed a long predicted uplift in activity in the second half of last year, although its figures were blighted by an isolated problem contract. Nonetheless, the uptick in activity helped Cape deliver record revenues over the year, and the prospect of a repeat performance in 2012 was enhanced by a 9.7 per cent rise in the forward order book to £940m. This means Cape has already secured 68 per cent of consensus revenues for the full year.
Cape has benefited from a number of major new energy infrastructure projects, prompted by the gradual recovery in economic confidence over 2011 and the strength of commodity prices. The Far East and Pacific Rim region remains a major focus, with revenues climbing more than 80 per cent since 2009 to £237m last year, while management expects double-digit sales growth in the Gulf region in 2012.
The UK region saw profits fall despite increased revenues due to a £4.1m charge on a loss-making rig refurbishment contract, which chief executive Martin May insists was a one-off aberration. Domestic prospects are promising, though, with investment in power generation set to gather pace in the coming years.
Prior to these results, broker WH Ireland was forecasting 2012 EPS of 46.5p (from 41.3p in 2011).
CAPE (CIU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 440p | MARKET VALUE: | £522m | |
| TOUCH: | 439-440p | 12-MONTH HIGH: | 600p | LOW: 282p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 339p* | NET DEBT: | 15% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 429 | 33.0 | 26.7 | nil |
| 2008 | 623 | 37.8 | 26.9 | nil |
| 2009 | 655 | -15.6 | -3.5 | nil |
| 2010 | 650 | 63.1 | 42.6 | 12.0 |
| 2011 | 723 | 61.9 | 40.2 | 14.0 |
| % change | +11 | –2 | –6 | +17 |
Ex-div: 9 May Payment: 8 Jun *Includes intangible assets of £247m, or 208p a share | ||||
