Shares in Cape rose 17% on the news, despite no update regarding litigation
Companies: CAPELLI
International energy services specialist Cape Plc has said it expects its full-year results to be "materially" ahead of expectations when it publishes them later this quarter.
The Middlesex-based firm said trading across its three regional businesses had been strong in the past two months, particularly in the Asia-Pacific region, driven by high levels of project activity.
The improved trading performance has also positively impacted net debt, as it is supported by strong cash generation.
Shares in the Cape rose more than 17% in early trading on Thursday as the market priced in the announcement.
Today's news will be welcomed by investors who saw the firm's share price collapse 24% in November after the company warned investors of the risk of dividend cuts due to ongoing litigation it is facing, and a potential 7-figure payout to claimants.
However, it is worth noting that today's announcement also mentioned that there was no new news regarding the litigation and its potential impact on the business:
"There has been no material change to the position disclosed on 18 November 2016 in respect of the insurer PL industrial disease claims."