Operating margins continue to improve at Cape

In a trading update for the first six months of the year, Cape, which has its UK operations in Wakefield, said that overall operating performance had been in line with the board's expectations.

Cape provides a range of industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, training and assessment to both industrial plant operators and major international engineering and construction companies.

Activity levels in the Far East/Pacific Rim region were materially ahead of 2009, offset by the expected lower activity levels in the Gulf/Middle East region. Overall revenues remained broadly consistent with last year and operating margins have continued to improve as Cape benefits from tight cost control and favourable currency exchange movements.

The company said net debt reduced to below 100m and it anticipates that its performance for the year ending December 31 will be ahead of its previous expectations as a result of cumulative trading and reduced finance costs in the first half of the year.