Cape : Interim results for the period ended 5 July 2015

26th August 2015

Cape plc
("Cape" or "the Group")

Cape plc, an international leader in the provision of critical industrial services to the energy and natural resources sectors, announces its unaudited half-year results for the period ended 5 July 2015.

On track despite challenging market conditions

1 H1 2015 comprises 27 weeks of performance in comparison to the 26 weeks in H1 2014 as detailed
in note 2.
2 Restated for the reclassification of Kazakhstan to discontinued operations as detailed in note 2.

• Overall trading performance in line with expectation:
  • UK, Europe & CIS region performed in line with expectation, with weakness resulting from the impact of the low oil price on the UK offshore market being offset by the benefits from recent acquisitions
  • MENA region performed ahead of expectation, driven by strong operating margins across the region
  • Asia Pacific region performed below expectation largely driven by lower than expected volumes and aggressive pricing in the Australian market

• Order intake during the first half increased by 26% to £399m (H1 2014: £317m)
• Order book £800m at period end (29 June 2014: £643m, 31 December 2014: £746m)
• Revenue increased by 13% to £362.6m (H1 2014: £320.3m)
• Adjusted operating profit increased by 8% to £24.9m (H1 2014: £23.0m) with adjusted operating margin decreasing by 30bps to 6.9%
• Period-end adjusted net debt of £131.3m (29 June 2014: £132.0m, 31 December 2014: £101.0m), driven by the seasonality of the UK power market and the acquisition of Redhall Engineering Solutions Limited
• Adjusted diluted earnings per share from continuing operations was 13.0p (H1 2014: 12.8p)
• The Group has declared an interim dividend of 4.5p (H1 2014: 4.5p) per share
  
  

"I am pleased to report results for the first half of the year in line with expectation. Our balanced business and drive for operational excellence has enabled us to achieve a robust performance against a backdrop of mixed market conditions. We anticipate that we will deliver a full year performance in line with expectation and believe that our strategy leaves us well placed to capitalise on the opportunities we see ahead of us."

Throughout this document, various management measures are used and referred to as adjusted. These are defined and reconciled within note 6 'Adjusted measures'.

The Group will be presenting to a meeting of analysts at 9.30am today at the office of Buchanan, 107 Cheapside, London, EC2V 6DN. The presentation will shortly be available on the Company's website at: www.capeplc.com/investors/financial-results-and-presentations.aspx

Cape plc

Joe Oatley, Chief Executive Officer
+44 (0) 1895 459 979

Michael Speakman, Chief Financial Officer
+44 (0) 1895 459 979

Buchanan
Bobby Morse, Ben Romney, Helen Chan
+44 (0) 207 466 5000

Any forward looking statements made in this document represent the Board's best judgement as to what may occur in the future. However, the Group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the Group. Such factors could cause the Group's actual results for future periods to differ materially from those expressed in any forward looking statements included in this announcement.

Cape (www.capeplc.com), which is premium listed on the main market of the London Stock Exchange, is an international leader in the provision of critical industrial services principally to the energy and natural resources sectors. Our multi-disciplinary service offering includes access systems, insulation, specialist coatings, passive fire protection, refractory linings, environmental services, oil and gas storage tanks and heat exchanger replacement and refurbishment.

Cape employs c. 17,500 people working across 21 countries and in 2014 reported revenue of £698.3 million.

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