You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Cape

0
Written by: YourMoney.com
20/03/2017
Helal Miah, investment research analyst at The Share Centre, picks industrial service provider Cape as stock of the week.

We have recently upgraded Cape, the international leader in the provision of critical industrial services principally to the energy and natural resources sectors, to a ‘Buy’ recommendation.

Following on from a positive trading update in January, in March the company reported  a 6% rise in adjusted pre-tax profits to £47.4m. Furthermore, revenue increased by 21.4% to £863.5m which, investors should note, has led to a return to dividend growth forecast for 2018.

Interested investors should note that management expects another strong trading performance in the year ahead, as well as margin improvement at its UK business as a result of restructuring measures. The CEO, Joe Oatley, has been striving to restore market confidence in the group and stated that he remains convinced that the group will deliver increased shareholder value over the medium- to long-term.

Like many in the sector, the share price was hit hard by the fall in commodity prices along with litigation concerns. However, on the basis of his track record we would suggest that investors should back the CEO to restore the fortunes of the company and to enable further longer-term recovery.

We therefore recommend this stock as a ‘Buy’ for a medium- to high-risk portfolio.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week