Cape lifted by record revenues

Cape, the services firm focused on the commodities sector, has achieved record revenues in its first year in the FTSE 250.

The company makes its money by providing non-mechanical services like insulation, painting, industrial cleaning and training.

In 2011 revenue increased 11.1% to £722.5m (2010: £650.1m) with adjusted profit before tax increasing to £69.4m (2010: £69.1m).

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Adjusted diluted earnings per share were 43.8p (2010: 42.6p) and basic earnings per share were 40.2p (2010: 42.6p).

The results include the full impact of a £4.1m charge for a loss making rig refurbishment contract in the UK which completed in the first week of January 2012. The firm clearly rues this contract, with chief executive Martin May making clear that action has been taken to ensure similar contracts are not undertaken again.

The final dividend has been hiked to 9.5p (2010: 8.0p) bringing the full year figure to 14p, a 16.7% increase.

Cape says momentum is building in key regions and that its "firm" order book has risen 9.7% to £940m, with over 68% of consensus full rear 2012 revenues secured.

The stock had risen 4.9% by 8:39am. Over the last 12 months the shares are still behind by 5%.

BS