For a company so exposed to oil and gas markets, Cape (CIU) does not look like it is sharing its customers' pain. In fact, the energy support services group posted a small increase in operating profit last year, thanks again to its business model's weighting to maintenance contracts and larger sales to Australia and Saudi Arabia.
This year's top line should be supported by an 18 per cent increase in the order book to £861m as well as recent geographical expansion, which marks Cape out as something of a sector anomaly. Last year, the group opened offices in Kuwait and Malaysia after a long-trailed uptick in construction project work.
While Cape has shown financial and operational resilience, chief executive Joe Oatley expects 2016 to be a tough test. Sales to upstream oil and gas customers, which accounted for 22 per cent of revenues in 2015, are most threatened. Midstream and downstream clients - which make up around a third of trade - are less affected by the oil price slump but are placing increasing pressure on margins.
Analysts at Numis are forecasting full-year pre-tax profit of £34.7m this year, giving EPS of 21.8p, against £29.1m and 12.7p in 2015.
CAPE (CIU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 234p | MARKET VALUE: | £283m | |
| TOUCH: | 230.3-234.5p | 12-MONTH HIGH: | 276p | LOW: 199p |
| DIVIDEND YIELD: | 6.0% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 104p* | NET DEBT: | 84% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 698 | 61.9 | 40.0 | 14 |
| 2012 | 737 | -143 | -137 | 14 |
| 2013 | 675 | 0.4 | -1.5 | 14 |
| 2014 | 691 | 30.0 | 18.7 | 14 |
| 2015 | 711 | 29.1 | 17.1 | 14 |
| % change | +3 | -3 | -9 | - |
Ex-div: 19 May Payment: 24 Jun *Includes intangible assets of £139m, or 114p a share. | ||||
