17th Jan 2006 07:01
Cape PLC17 January 2006 Cape PLC ("Cape" or "the Company") Trading Update Cape PLC, (AIM: CIU), the international provider of support services for theenergy sector, announces a trading update ahead of its close period for the yearended 31 December 2005. The Directors are pleased to confirm that Cape's results in the second half of2005 are anticipated to be in line with market expectations. Sales havecontinued to grow both in the UK and overseas with a number of new contractwins, contract renewals and the initiation of new projects. Ongoing maintenancework across the UK operations has held up well and the Middle East businessunits continued their strong performance of the past 18 months. New prospects in the UK are encouraging and, in the Middle East, there areextensive new opportunities which the Group is well placed to benefit from.These prospects and opportunities, taken together with the continuing highenergy prices and the recent developments concerning gas supplies from Russia,lead the Directors to view the Group's prospects for 2006 with confidence. Scheme of Arrangement On 16 June 2005, Cape announced a proposed scheme of arrangement (the "Scheme")to provide for the long term financing of a great majority of all future UKasbestos-related claims likely to be successfully made against the Company andthose of its subsidiaries to be included in the Scheme. Following the detailedupdate and revisions to the Scheme announced on 16 November 2005, the Companyhas completed the notification of persons who might be affected by the revisedScheme proposals in accordance with the directions of the Court. Legal andfinancial due diligence from the perspective of future claimants, which is beingfunded by Cape, is commencing. The Company anticipates that an application tothe Court to convene meetings of Scheme creditors will be made at the end ofFebruary 2006 with the meetings expected to be held in April or May 2006.Provided the requisite majorities are obtained at the meetings of Schemecreditors, application for the sanction of the Scheme by the Court will be madeas soon as practicable thereafter. As Cape announced on 16 November 2005, in order for the Scheme to becomeeffective (and in addition to the approval of Scheme creditors), the Company'sshareholders will be required to approve an extension of the date by which theprovisions that relate to the special Scheme share must become effective and theCompany must also renew its loan facilities from its bank to complete theinitial Scheme funding. With regard to the former, the Company intends toconvene an extraordinary general meeting of its shareholders shortly after theapplication to the Court to convene the Scheme creditors' meetings and, withregard to the latter, discussions with the Company's bank are continuing. The Directors continue to believe that the revised Scheme proposals are in theinterests of all stakeholders and, in particular, future claimants. ENDS For further information, please contact: Cape PLCMartin May, Chairman +44 (0)1924 876 276 Bell Pottinger Corporate & FinancialNick Lambert +44 (0)20 7861 3232 /+44 (0)7811 358 764 Note to editors Cape PLC is the parent company of a number of service providing organisations(the "Group") operating primarily in the oil and gas, petrochemical and powergeneration industries. The Group has turnover of c. £240 million and employsaround 7,000 people in 26 countries worldwide. The Group's sole operating business is Cape Industrial Services ("CIS"). CISspecialises in the provision of scaffolding, insulation, fire protection andother essential services to major industrial clients in the energy sector. CIS operates in Bahrain and Saudi Arabia under the name RB Hilton. In the UK, CIS also operates as Cape Hire and Cape Security. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CIU.L