Pacific Rim problems hit Cape’s shares

Shares in Cape fell more than a third after the mining and oil services company issued its second profits warning in as many months.

Cape said a poor performance at its operations in the Far East and Pacific Rim — especially in Australia — “has led to operating margins being significantly lower than previously expected”.

“With delays in major projects in Australia now apparent, no improvement in activity levels is expected in the near term,” added Cape, which provides insulation, painting, coatings and industrial cleaning services to plant operators in the energy and mining sectors.

Cape said it has begun a review of the region’s business structure.

The group’s shares fell by 107.3p, or 37.0%, to 182.54p.