Less Ads, More Data, More Tools Register for FREE

Pin to quick picksCIU.L Share News (CIU)

  • There is currently no data for CIU

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Cape Increases Provision For Historical Industrial Disease Claims

Wed, 20th Jul 2016 08:25

LONDON (Alliance News) - Industrial services company Cape PLC on Wednesday said it has increased the provision on its books to cover industrial disease claims following recent judgements made in the UK.

Cape said a Court Approved Scheme of Arrangement was created in 2006 to administer the settlement of valid claims made against the company related to historic asbestos activities. Cape said over GBP30.0 million had been paid to those who became ill or to their dependants since the scheme was set up.

However, the scheme and Cape are now subject to new developments and types of claim, one of which has been filed by insurer Aviva seeking to establish contribution and indemnity claims against the company. The claims related to employee liability settlements made in response to claims Aviva underwrote for a liquidated Cape subsidiary covering the period from 1956 to 1966.

Court hearings on the new claims have been held, and the judgements made were mixed, with some going in Cape's favour and some not. Cape is seeking to appeal some aspects of the litigation but said it will make a GBP9.7 million increase to the provision held against these industrial disease claims.

Due to this increase in the provision, Cape said it intends to make a further GBP9.0 million payment by the end of 2016 to the ring-fenced scheme to meet its funding requirements.

The judgements received are separate from a second type of claim being jointly pursued by Aviva and RSA Insurance in respect of historical and current payments made by the insurers as providers of employee liability insurance. Cape said it continues to believe these claims are "without merit" and is "vigorously" defending itself.

Shares in Cape were down 4.7% to 188.00 pence Wednesday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.

More News
22 Dec 2015 07:50

Cape Secures USD90 Million Contract Extension From BP In Azerbaijan

Read more
24 Nov 2015 09:26

Cape Affirms 2015 Guidance Despite Tough Market Conditions

Read more
17 Nov 2015 16:19

Earnings, Trading Statements Calendar - Week Ahead

Read more
30 Oct 2015 07:47

Cape Wins Two Year Contract To Provide Services To Karratha Gas Plant

Read more
2 Oct 2015 15:11

Dividends Calendar - Week Ahead

Read more
8 Sep 2015 05:12

Dividends Calendar - Week Ahead

Read more
7 Sep 2015 15:04

Dividends Calendar - Week Ahead

Read more
7 Sep 2015 05:15

Dividends Calendar - Week Ahead

Read more
4 Sep 2015 15:17

Dividends Calendar - Week Ahead

Read more
4 Sep 2015 05:22

Dividends Calendar - Week Ahead

Read more
3 Sep 2015 15:05

Dividends Calendar - Week Ahead

Read more
27 Aug 2015 14:34

Oil services firms beat expectations, tough times loom

* Middle East, cost cuts help in first half of 2015 * Second half will be tougher due to weak oil price * Customers' cost cuts could accelerate consolidation By Karolin Schaps and Abhiram Nandakumar LONDON/BANGALORE, Aug 27 (Reuters) - Oil and gas service companies have fa

Read more
26 Aug 2015 08:10

Cape Reports Small Rise In First Half Profit, Maintains Dividend

Read more
25 Aug 2015 10:08

BUZZ-Oilfield services: Up as oil prices stops slide

** Britain's oilfield services companies rose as crude oil prices bounced back from heavy losses and global markets recouped from Monday's freefall ** John Wood Group among top risers on the FTSE 250 index, up 5.7 pct, poised for best day this year ** Amec Foster Wheeler up 3.5 pct, b

Read more
30 Jul 2015 08:03

Cape Wins GBP9.8 Million Contract For BP's Clair Ridge Project

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.