Member access

4-Traders Homepage  >  Shares  >  London Stock Exchange  >  Cape PLC    CIU   JE00B5SJJD95


SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

Cape Sees GBP14 Million Hit On 2012 Pretax Profit

05/25/2012 | 02:57am US/Eastern

Cape PLC (>> Cape plc), a provider of non-mechanical support services to the energy and mining sectors, said Friday its 2012 pretax profit will be around GBP14 million lower after the company took a hit on a contract, due to delays and increased costs.

The Arzew contract, awarded by Snamprogetti Chiyoda sas di Saipem SpA in August 2010, is for the provision of the total insulation works for the Sonatrach GL3-Z liquefied natural gas project in Arzew, Algeria.

Cape had valued the contract in excess of GBP22.5 million, with work planned to start in the first quarter of 2011 and scheduled for completion in the first half of 2012.

A project review in May, commissioned by acting Chief Executive Brendan Connolly, identified additional costs arising within the project, which as a result is now projected to produce a significant loss.

The board has instigated a plan to mitigate the potential losses, including the setting up of a new project team and the introduction of additional skilled workers.

Based on the latest available estimates, Cape intends to recognize a one-off charge of GBP14 million in respect of current and estimated future losses on the contract, which will be charged in its interim accounts for the six months ending June 30.

Cape reiterated its previous revenue guidance for 2012 of 10% growth over 2011 revenue.

Shares closed Thursday at 323.5 pence.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269;

Stocks mentioned in the article : Cape plc, Cape plc
Recommend :
React to this article
Latest news on CAPE PLC
3h ago CAPE : *numis raises cape plc to 'buy' ('hold') - target 370 (310) pence
1d ago CAPE : Half-Year Pretax Profit Jumps As Currency Movements Hit Revenue
08/18 CAPE : TR-1: Notification of Major Interest in Shares
08/04 CAPE : awarded three year contract extension with Oil Search Ltd PNG
07/31 CAPE : Environmental Services shortlisted for EIC Award for Supply Chain Excelle..
07/08 CAPE : Notification of Results
06/23 SNC-Lavalin bulks up energy business with $2 billion Kentz buy
06/23 SNC-Lavalin bulks up energy business with $2 billion Kentz buy
05/23 CAPE : announces new contract win in Papua New Guinea
05/14 CAPE : Result of 2014 Annual General Meeting
Duration : Period :
Cape PLC Technical Analysis Chart | CIU | JE00B5SJJD95 | 4-Traders
Income Statement Evolution
Cape PLC : Income Statement Evolution
More Financials
Dynamic quotes