Cape on target as tax base switch making progress

The group, which has operations in Wakefield but derives more than two-thirds of its profit from outside the UK, last week announced plans to establish a new UK-listed holding company abroad, plus move to the London Stock Exchange’s main market.

Cape said it has incurred £3.5m in costs relating to the restructuring.

Of these, £2m stem from its move to the main market and shifting its tax base.

The remaining £1.5m covers a charge representing the group’s unamortised facility fees, following its early cancellation of its 2007 syndicated bank facility. Cape signed a new £220m bank facility in January to provide “a strong financial platform and flexibility to support future growth”.

Cape provides services to the energy industry including access systems, insulation, painting, coatings, blasting, industrial cleaning and training.

It said activity levels and operating margins since the start of the year are in line with 2010.

Activity in the Commonwealth of Independent States, Mediterranean, North African, Far East and Pacific Rim regions was ahead of 2010, offsetting weaker activity levels in the Gulf and Middle East region.

The group said it continues to expect demand for its construction support services to start showing sustained growth from the summer onwards.

Cape said its order intake in the first four months of the year supports this belief, with contract wins in the Gulf/Middle East including extensive work on the Jubail Export Refinery, Ruwais Refinery 4th NGL train, Habshan 5 and Borouge III.

All these energy projects are expected to start in the final quarter of this year or early next.

Cape added several major liquefied natural gas projects are due to start in the Far East and Pacific Rim region, adding to its belief in a rebound in demand for construction support services.

Cape expects its new shares of 25p each will begin trading on the London Stock Exchange’s main market on June 17, when its AIM shares will be cancelled.