LONDON (Alliance News) - Cape PLC shares were trading higher Wednesday morning after the company said its pretax profit surged in 2014 on the back of better revenue and significantly lower exceptional costs.
The energy services company said its pretax profit for the year was GBP29.8 million, compared to a profit of only GBP0.4 million the year earlier.
Revenue increased to GBP698.3 million from GBP674.9 million, pushing operating profit up to GBP52.1 million from GBP40.3 million, and pretax profit was further boosted by exceptional costs only coming in at GBP0.9 million, compared to a GBP14.9 million exceptional cost booked in 2013 related to its restructuring programme in Australia.
Cape said its revenue was pushed higher by a good performance in its Asia Pacific business in the year and the benefits from the acquisition of Motherwell Bridge, which produced a 4.1% boost to revenue. Order intake rose 22% in the year to GBP765 million from GBP625 million, primarily from the GBP150 million EDF maintenance renewal deal secured in the UK.
The company proposed a flat final dividend of 9.5 pence per share, meaning its total dividend for the year also will be flat at 14 pence.
"The excellent result for 2014 is a reflection of the progress we have made in strengthening the operating performance across the business, with improved margins driving robust profit growth, and we believe that our strategy of having a balanced business provides resilience against a downturn in any one sector or geography," said Cape Chief Executive Joe Oatley.
"With continued progress on improving operational performance mitigating the volatility in some of our key markets, the board currently anticipates that the 2015 result will be broadly in line with 2014, although we recognise there is increased uncertainty in the outcome for the second half of the year," Oatley added.
Cape shares were up 7.8% to 244.10 pence in early trade Wednesday, the best performer in the FTSE All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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