Cape's hope for a good full year

Cape, which provides maintenance services to energy and mining companies, said cash generation has been strong and it expects to reduce debt to about 115m by the end of the year, nine per cent ahead of market estimates.

Cape, whose UK operations are based in Wakefield, is expected to report a pre-tax profit of 60m in the year to December 31.

Cape's shares, which have risen almost four-fold in the past year, closed up nearly seven per cent last night, a rise of 16.75p to 258.75p.

Numis Securities said in a note: "The final results are likely to contain further positive newsflow including the potential return to paying a dividend." Numis repeated its 'buy' rating on the stock.

"We believe on a 12-month view that a 3-4 share price is achievable based on increasing confidence in 2010 forecasts and the opportunities in Australia," the broker said.

The group's final results are due to be announced on March 10.

In September the group reported an 85 per cent leap in half-year profits and strong growth in its order book.

Cape said pre-tax profits in the six months to June 30 had grown from 14.7m to 27.2m.

The company, which provides maintenance services to energy and mining companies, said it had benefited from exchange rate movements and cost reductions.