LONDON (Alliance News) - Cape PLC on Wednesday said it managed to increase revenue in 2015 despite facing several headwinds in the period, resulting in a slight dip in profit, as the company warned that its margins will be squeezed this year.
Cape, which provides services to numerous sectors including the mineral resource and oil and gas sectors, said its pretax profit dipped to GBP29.1 million in 2015 from GBP30.0 million.
The dip in pretax profit came despite revenue rising to GBP711.4 million from GBP690.5 million, which pushed operating profit up to GBP39.9 million from GBP39.7 million.
That allowed Cape to maintain its dividend at 14.0 pence, which is flat from last year.
On an adjusted basis, which excludes certain exceptional items, Cape's pretax profit fell by GBP800,000 year-on-year.
"Cape achieved a robust performance in 2015 despite the substantial challenges in the oil and gas industry, demonstrating the progress we have made in implementing our strategy. The results are a testament both to the dedication of all of the people at Cape and the progress we have made in making Cape into a strong and resilient business," said Chief Executive Joe Oately.
"Whilst we anticipate that our markets will become tougher in 2016 and this is likely to put pressure on margins across our business, Cape is well positioned to navigate safely through these stormy waters and we remain committed to investing in our strategy which I believe will continue to deliver long term sustainable shareholder value," he added.
Cape's order book at the end of the year stood at GBP861.0 million, 18% higher than GBP731.0 million at the end of 2014, as the company continues to target areas for growth including geographic expansions and by broadening its service offering.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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