CIU.L Regulatory News (CIU)

Embargoed: 0700hrs 7 July 2011

Cape plc

("Cape" or the "Group")

Trading Update

Trading

Cape plc, the international provider of essential, non-mechanical support services to the energy and mineral resources sectors, today issues a trading update for the first six months of 2011.

In line with previous guidance, we anticipate that revenues in the first half will be broadly similar to last year, with growth expected to recommence throughout the second half and beyond, as demand for construction support services increases.

As anticipated, on a regional basis in the first half, our Far East/Pacific Rim business continues to perform well and we expect revenues to grow by around 18%. We also expect revenues in the CIS/Mediterranean & North Africa business will grow by around 30%. Growth in these two regions is expected to offset lower activity levels in the Gulf/Middle East region where revenues are expected to reduce by c18%.

We expect regional operating margins in the first half to be at similar levels to last year on an underlying basis other than in the Far East/Pacific Rim region, where they are expected to continue to strengthen.

Corporate expenses

As highlighted in the Interim Management Statement of 16 May 2011, and as expected, c£3.5m of non-recurring corporate charges have been incurred in the year to date comprising £2m in relation to the move from AIM to the LSE's main market and the corporate restructuring involving a new Jersey-incorporated Group holding company (announced with the preliminary results on 2 March 2011) and a £1.5m charge representing the unamortised facility fees arising on the early cancellation of the Group's 2007 syndicated bank facility.

Financial position

The Group is in a strong financial position. We expect net debt at the end of June 2011 to increase to c. £76m (December 2010: £52.9m; June 2010: £95.1m), reflecting the usual seasonal working capital outflows, higher levels of capex as we invest in growth, and the reintroduced dividend payment.

Outlook

Our business model inherently provides us with high levels of revenue visibility and the Board confidently expects a return to revenue growth in-line with our double-digit target range in the second half driven by:

- Gas and LNG projects in the Far East/Pacific Rim region;

- Downstream projects in the Gulf/Middle East region;

- Increasing maintenance/production support expenditure in the UK region; and

- The commencement of the GL3-Z LNG project in Arzew, Algeria.

We remain focused on continuing to provide superior execution and delivery to our clients. The Board is confident that by building on our strong customer relationships, the Group will continue to capitalise on the profitable growth opportunities inherent in its strategy.

Notice of results

Interim results for the six months ended 30 June 2011 will be published on Wednesday, 31 August 2011.

- Ends -

Enquiries:

Forward looking statements

Any forward looking statements made in this document represent the Board's best judgment as to what may occur in the future. However, the Group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the Group. Such factors could cause the Group's actual results for future periods to differ materially from those expressed in any forward looking statements included in this announcement.

About Cape:

Cape plc (www.capeplc.com), which is listed on the main market of the London Stock Exchange, provides a range of non-mechanical industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, training and assessment to both industrial plant operators and major international engineering and construction companies.

As a single source provider, Cape is able to provide a range of specialist multi-disciplinary services specifically tailored to meet the needs of the client providing the most intelligent and cost efficient solutions for our customers non-mechanical in-plant maintenance and capital needs.

In the year ended 31 December 2010, Cape reported revenues of £650.1 million. With scale and leading market positions across its international footprint, Cape employs over 18,000 people in 29 countries.