Companies: CIU   

'Old Cape, new Cape' is how Martin May sees the story at the revamped concern, which has assets in the bag and revered institutions on board (ISIS, M & G). Its tough, pragmatic chairman with a background in corporate recovery was drafted in 18 months ago. Loss making manufacturer Cape Calsil Systems was sold in 2002, with Cape retaining property assets. In recent times, Cape has settled South African and UK shipyard asbestos damages claims. Other claimants might emerge, but May says 'we're not walking away from our liability and we have the money to pay'. £10m was recently raised from the sale of an Uxbridge manufacturing site, and Cape still owns a 120 acre site adjacent to the M25 in Middlesex that could yield a cash windfall. Cape Industrial Services (CIS), involved in industrial scaffolding, insulation and specialist coatings, is the remaining operation. It improved operating profits 6% to £3.6m in the June half, with turnover up 16% to £104.2m. CIS has a strong market position with major international blue chips on its client roster - it is also benefitting from growing investment in global Liquid Natural Gas projects. For the full year, Evolution Beeson Gregory's Adrian Kearsey suggests pre-exceptional profits of £5.3m, eps of 7.7p, giving a forward rating of 8.2 times. Throw in the assets on the books and this looks a strong buy.