Cape continues to put in a strong performance

SUPPORT services firm Cape said today performance was in line with management expectations following a strong second half.

The Wakefield-based firm, which supplies scaffolding, insulation, fire protection and cleaning services to the energy and natural resources sectors, said that the “strong top line performance” in the first half of 2008 had continued although the group narrowly missing its debt reduction target of £30m as a result of adverse currency movements (Australian dollars).

However, it said that operating cash flow over the year had been satisfactory.

In November, Cape announced that a joint venture, in which it has a 50% stake, had been named as a preferred bidder for a Royal Navy contract to build aircraft carriers.

The contract is anticipated to generate revenues in excess of £70m to the joint venture company.

The Queen Elizabeth class aircraft carriers are a two-ship class of aircraft carrier being developed for the Royal Navy.

HMS Queen Elizabeth is expected to enter service in 2014, HMS Prince of Wales in 2016. The vessels will be 280 metres long and capable of carrying up to 50 aircraft.

Cape will announce its preliminary annual results on March 19.