Cape confident about the future

ENERGY services group Cape said that trading in 2010 was in line with expectations.

In a trading update Cape, which has its UK operations in Wakefield, said the group's revenue levels have remained broadly consistent with the previous year.

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.

Cape has seen higher activity levels in the Far East/Pacific Rim region, which has offset the expected lower activity levels in the Gulf/Middle East and UK regions.

Net debt is expected to halve to less than 57m at the end of 2010.

The group said it has refinanced its banking facilities on favourable terms through to June 2015.

It added that the new 220m syndicated credit facility with Lloyds Banking Group, Barclays Bank, National Australia Bank and HSBC provides the company with a strong financial platform and the flexibility to support future growth.

The group said it expects a return to sustained organic revenue growth from the second half of 2011, as capital expenditure in the global energy sector begins to increase.

Cape's preliminary results will be published on March 2.