Cape revenues lift as UK sales pick up pace
INDUSTRIAL services provider Cape said yesterday its quarterly revenue has jumped 16 per cent, helped by double-digit sales growth at home and abroad.
The FTSE 250 company, which provides services to plant operators in the energy and mining sectors, said it was well positioned for the rest of the year as its order book was marginally higher than a year ago.
The company said trading in the first three months of the year met its expectations, with acquisitions contributing three per cent of sales growth and currency gains contributing another three per cent over the period.
Cape said its operating margins were flat at year-ago levels, except for the anticipated reduction in the Gulf and the Middle East region.
The firm also operates in the Far East and Pacific Rim as well as in the Mediterranean and North Africa.
Cape shares rose 7.9 per cent after the announcement as investors welcomed the lift in revenues.
The stock has shed about 14 per cent of its value since the company surprised investors and analysts last month by announcing the departure of its chief executive Martin May.
Cape provides a range of non-mechanical industrial services including access systems, insulation, painting and cleaning.
It said in a statement: “The board is confident the group is well positioned for the remainder of the year and the group’s order intake continues to support this with the order book slightly ahead of year end levels.”
The company will report half yearly results on 30 June.