Cape profit rises as company sees higher growth in 2011

ENERGY support services group Cape's full-year adjusted pretax profit rose 26 per cent in 2009, after contract wins in the Middle East, as the company said it would return to higher growth in 2011.

Wakefield-based Cape, which provides insulation, industrial cleaning and training services to the energy and mineral resources sectors, today posted adjusted pretax profit of 60.7m, compared to 48.3m in 2008.

Cape said without adjustments it posted a pretax loss, having booked a provision of 70.5m to enable it to draw a line under its asbestos liabilities.

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The company, whose customers include EDF, BP and National Grid, said it had benefited from the defensive nature of its maintenance business, which accounts for 48 per cent of revenues, and new contract wins in the Middle East.

Cape said it expected levels of activity to be the same in 2010 as in 2009, but it anticipated a return to higher growth in 2011, with demand for its services benefiting from ageing infrastructure in the UK and high growth in markets in the Middle East and Far East.

Cape said it would look to restart dividend payments later this year, after last paying a dividend to shareholders 10 years ago.

Shares in Cape closed at 253.75 pence yesterday, valuing the company at 294.4m.