Growth stalls at Cape

Industrial services provider Cape said it expects growth to pick up pace throughout the latter part of the year and anticipates revenues for the first half to be similar to last year, sending its shares 1% lower. In addition, the company said it expects net debt at the end of June to increase to £76m, from £52.9m in December 2010, reflecting higher levels of capital expenditure, increased seasonal working capital outflows and the reintroduction of dividend payment. For the first six months on a regional basis, the firm said weakness in the Gulf and Middle East regions was offset by strong performance in the Far East, Pacific Rim units and Mediterranean and North African businesses.The company also added that it "confidently expects a return to revenue growth in-line with our double-digit target range in the second half" driven by gas and liquefied natural gas (LNG) projects in the Far East and Pacific Rim regions and the commencement of the LNG project in Algeria. Shares of Cape slipped 1.1% to 565p in morning trade in London.AR