12th May 2015 09:41
LONDON (Alliance News) - Cape PLC Tuesday expressed confidence in meeting expectations for 2015 on the back of its performance in the first quarter, although it cautioned that market volatility continues to give uncertainty to the outcome of the second half of the year.
Cape provides industrial services for the energy and mineral resources sectors. In a statement ahead of its annual general meeting it said its overall trading had been in line with its expectations, with subdued order intake due too the continued delay of key UK maintenance contracts and project deferrals in its Motherwell Bridge business.
As a result, its order book at the end of the quarter was GBP686 million, down from GBP746 million at the end of 2014. However, after the quarter end it won maintenance contracts in the UK with oil majors ExxonMobil Corp and BP PLC, which has "materially" increased its order book.
Cape says short-term prospects in its markets are mixed, but it expects demand for its services to grow in the long term.
It said it expects the UK market to remain subdued for the remainder of 2015, but activity levels in the Middle East and North Africa region remain encouraging. Construction activity in the liquefied natural gas sector in Asia Pacific is increasing, Cape said. The Australian market remains challenging, with low levels of demand and increasing price pressures.
It has put in place some cost management in the UK and Australia, intended to help mitigate the challenging markets in those countries.
Cape expects to announce its first half results August 26.
Shares in Cape are trading down 3.9% at 257.60 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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