Cape to set up new UK-listed holding company

In March, the coalition Government unexpectedly increased a supplementary tax charge on oil and gas production to 32 per cent from 20 per cent to help fund broader corporation tax cuts and lower fuel duty for hard-pressed consumers.

Cape, which has operations in Wakefield but derives more than two-thirds of its profit from outside the UK, said the restructuring follows its growing international presence.

Cape expects costs of £2m associated with the restructuring.

Over the next five years, the company, which provides insulation services to liquefied natural gas terminals, said it expected business to be driven primarily from the Pacific Rim and Far East regions.

This follows the company’s expectation of securing two large liquefied natural gas (LNG) projects in the second half of 2011.

Cape also said it would apply to the UK Listing Authority for the new shares of 25p each to be admitted to trading on the London Stock Exchange’s main market.

Last week, Britain’s Economic Secretary to the Treasury Justine Greening acknowledged the impact of higher taxes on investments in the UK and said the Government would work with the oil and gas industry to limit the impact of the unexpected tax hike on marginal North Sea fields.

Cape has said business should pick up in the second half of 2011 on the back of the two LNG projects.

The company reported a 14 per cent increase in 2010 annual profits to £69.1m.

The group’s chief executive Martin May said: “As we get into the second half, our business will tip-up on the back of two large projects that we’re bidding on. One is Gorgon in Australia and the other is in Papua New Guinea.”

Construction on the two liquefied natural gas projects is scheduled to begin in 2012.

The company, which provides insulation services to LNG gas terminals, also said it had secured 63 per cent of its 2011 revenue target of £705m.

Cape counts EDF, BP and National Grid among its customers.