It looks like a done deal. By the end of the first closing date, Altrad Bidco had received valid acceptances in respect of a total of 77.1m shares in Cape (CIU), representing around 63.6 per cent of the issued capital. The offer has been extended until 5 September 2017. But if Cape is to be subsumed within Altrad, its last set of statutory figures will certainly cheer management at the French construction supply group.
Adjusted operating profit was 126 per cent to the good at £42.7m, reflecting a 250 basis point increase in the underlying margin. This was achieved on the back of improved commercial performance and the benefit of restructuring measures. Predictably, the half-year dividend has been canned.
It’s been a favourable period for Cape largely due to the phasing of work at two major programmes: Chevron's Wheatstone LNG project in Australia and Shell’s massive Prelude floating LNG facility. The upshot is that results will be significantly weighted to the first half of the year. Nonetheless, even though oil services markets remain battered, Cape has managed to secure contract wins in the UK, with the renewal of a long-term maintenance contract with BP, and in Australia (an increasingly important source of revenue) with the award of an initial contract at the Ichthys onshore LNG project.
Arden Partners expects pre-tax profits and EPS of £56.4m and 35.1p, respectively, for the year-end (from £47.4m and 29.9p in 2016).
| CAPE (CIU) | ||||
| ORD PRICE: | 257p | MARKET VALUE: | £311m | |
| TOUCH: | 256.5-257p | 12-MONTH HIGH: | 268p | LOW: 139p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 101p* | NET DEBT: | 61% | |
| Half-year to 02 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 † | 396 | 1.4 | 0.1 | 4.5 |
| 2017 † | 582 | 32.9 | 19.9 | nil |
| % change | +47 | +2250 | +19800 | - |
| Ex-div: | - | |||
| Payment: | - | |||
| *Includes intangible assets of £147m, or 121p a share †27-week period | ||||
