Cape confirms approach by ‘third party’

CAPE, the Yorkshire industrial services group, confirmed today that it had recently received a “very preliminary” approach from the third party, which may or may not lead to an offer for the firm.

The statement follows a recent rise in its share price as a result of speculation over a potential offer.

In May, Cape announced a solid start to the year with overall trading in line with expectations for the year to date.

It said that activity levels in the Far East/Pacific Rim region were ahead of 2009 offsetting the expected lower activity levels in the Gulf/Middle East region following the completion of several major projects.

The group said that there had been no significant change to its financial position during the period with continued strong operating cash flows and substantial headroom available under the group’s funding facilities.

Cape said: “With half of Cape’s revenues based on the essential maintenance spend of plant operators and the other half mainly based on large, multi-year duration industrial projects, Cape is enjoying excellent revenue visibility which provides the board with confidence for the full year.”