CIU.L Regulatory News (CIU)

19 Jun 2006 10:33

Cape PLC19 June 2006 Cape PLC ("Cape" or the "Company") AGM Statement At the Company's AGM this morning, Martin May, Executive Chairman of Cape PLC,will make the following statement: Trading Cape PLC, the international provider of essential industrial support services tothe energy sector, is pleased to announce that trading in the first half of 2006has been significantly ahead of market expectations. Cape Industrial Services Limited ("CIS"), the Company's subsidiary and soleoperating business, continues to win contracts with new and existing clients inthe UK including the £10 million contract with Drax Power Limited, announced on13 June. The Company's overseas operations have also enjoyed a number ofsignificant successes. Cape East LLC, the Company's subsidiary based in the United Arab Emirates, hassecured a £3.8 million order from Consolidated Contractors International Ltd forcryogenic and thermal insulation services on the Third NGL Train at Ruwais. Thework is expected to commence in the final quarter of this year and continue intoearly 2008. The ultimate client for the project, Abu Dhabi Gas Industries Ltd(GASCO), has also recently named Cape East LLC as its 2005 HSE contractor of theyear. It is a major achievement to be recognized by clients in this way and Iwould like to congratulate the management and staff of Cape East LLC forrealizing this high standard of success. The Company, through its subsidiary Cape East and Partners LLC, has been presentin Oman since 1997 and during this time has provided multi-discipline serviceson a number of the new industrial plants such as the Oman LNG Complex and OmanIndia Fertilizer Plant (OMIFCO) in Sur. To these can be added the new fertilizerplant at Sohar. The contract with Bahwan Engineering Company, on which work isexpected to begin in November 2006, has an estimated value of c. US$ 3.6million, with Cape East and Partners LLC providing its multi-disciplinedservices, covering thermal insulation, refractories and scaffolding. I am also pleased to announce that we have recently secured our first work inKuwait since 1997. Cape East's subsidiary in Kuwait has entered into a contractwith Gulf Spic to provide scaffolding services worth approximately $400,000 onthe new Equate II petrochemical plant. A number of other prospects for work onmajor new construction projects in the State are being actively pursued. In the Caspian region, CIS's branch in Kazakhstan has secured a furtherinsulation contract from Parsons Fluor Daniel in connection with the Tengizdevelopment. The contract has a value of US$2.5 million and will ensure Cape'scontinued involvement with the Tengiz development into the middle of 2007. I amalso pleased to confirm that our oldest client in Kazakhstan, IGS Sicim, hasawarded CIS a contract worth c. US$7.4 million, involving insulation work,scaffolding and painting at the Kashagan development at Karabatan. Work is dueto commence in July 2006. These contracts, which bring the total value of significant new business winsannounced since the last AGM to in excess of £95 million, together with majorcontract renewals in the year and other orders in the pipeline, are veryencouraging. The second half of the year continues to look very positive and theBoard is confident that the Company is well placed to achieve another year ofsustained growth. Scheme of Arrangement ("Scheme") I am also delighted to be able to confirm that Cape's scheme of arrangement toprovide for the long term financing of a great majority of all future UKasbestos-related claims likely to be successfully made against the Company hasbeen approved by Scheme creditors, sanctioned by the High Court and becameeffective on 14 June 2006. We believe that the implementation of the Scheme has significantly increased thelikelihood that Cape will be able to satisfy all Scheme claims in full. TheScheme also provides considerable de-risking for Cape, removes a significantobstacle to the Group's growth and leaves the Group better able to generate theresources needed to secure the continued payment of compensation to claimants. ENDS For further information, please contact: Cape PLCMartin May, Executive Chairman +44 (0)1924 876 276 Bell Pottinger Corporate & FinancialNick Lambert +44 (0) 20 7861 3232 / +44 (0) 7811 358 764 Notes to editors Cape PLC is the parent company of a number of service providing organisationsthe 'Group') operating primarily in the oil and gas, petrochemical and powergeneration industries. The Group has turnover of c. £260 million and employsaround 7,700 people in 23 countries worldwide. The Group's sole operating business is Cape Industrial Services ('CIS'). CISspecialises in the provision of scaffolding, insulation, fire protection andother essential services to major industrial clients in the energy sector. CIS operates in Bahrain and Saudi Arabia under the name RB Hilton. In the UK, CIS also operates as Cape Hire and Cape Security. This information is provided by RNS The company news service from the London Stock Exchange