Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CAPE PLC. We currently have 5 research reports from 1 professional analysts.
|01Feb17 07:00||RNS||Total Voting Rights|
|17Jan17 07:00||RNS||Cape awarded work packages in KSA|
|06Jan17 10:22||RNS||TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES|
|05Jan17 07:00||RNS||Trading Update & Contract Win|
|03Jan17 07:00||RNS||Total Voting Rights|
|22Dec16 07:00||RNS||Cape extends contracts with EDF Energy in the UK|
|13Dec16 18:10||RNS||TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES|
Frequency of research reports
Research reports on
Full year results preview – figures due out 16 March
26 Feb 16
Cape is due to release its 2015 results on 16 March. We will be looking for updates in three main areas. First, we believe the continued industry focus on cost cutting could result in a downgrade to 2016 expectations at the results. We will look for guidance around this in the outlook given at the time. Second, we expect the 14p dividend to be maintained for 2015 and look for positive guidance that this will continue going forward, which we believe likely and see as a key attraction for the stock. Third, we are keen to see an updated order book (last figure is from June 2015), particularly given the low level of significant contract awards in H2 – this should further inform our forecasts going forward. Overall we feel any downgrade to forecasts and/or a significant fall in order book could create pressure on the shares short-term. Nevertheless we remain keen on the company, believing that the dividend will be maintained in 2015 and 2016 providing downside protection while the shares also give exposure to the upside of oil market recovery. Based on this we have a Buy recommendation and 280p price target.
27 Nov 15
We attended Cape's site visit in Teesside yesterday. This comprised a tour of Cape's operations at two sites of client Sabic: its Wilton polyethylene plant where Cape provides a range of services including access (the company was at pains to point out the innovative HAKI scaffolding it is making increasing use of to reduce setup and takedown times), insulation, coatings and environmental services; and across the river its North Tees site where Cape is combining the tank construction capabilities acquired via Motherwell Bridge and its insulation business to build a 77,000 cubic metre ethane tank to allow the polyethylene plant to begin using this as a feedstock instead of more-expensive naphtha.
05 Aug 15
Cape is due to release its H1 2015 results on Wednesday 26 August. At this time we are hoping for a number of updates. Most important of these will be the dividend both maintenance of the interim dividend but also any further reassurance on this going forward. Clearly we also expect an update on current trading and outlook. For us the most important element here will be the impact that the oil price and consequent industry CAPEX cuts are having both on the progression of current contracts (hopefully minimal) and the effect it is having on future work both margin pressure on maintenance work and timing of new projects. Overall while we believe that there is the very real danger of a downgrade to earnings we think that unless this is extremely severe the dividend will be maintained.
29 May 15
Cape is a UK services company providing coatings and access solutions to the oil and gas, power, mining and chemicals sectors. The company operates over three regions: UK/CIS, MENA and APAC, and has onshore and offshore capability. Revenues from maintenance activities provide a strong base for the dividend while leaving Cape exposed to growth from new projects coming through. We have a Buy recommendation and 300p price target.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.