The issues now appear more than just simply deterioration in trading, and raise questions on the internal controls in the business first highlighted with issues experienced on a project in the UK followed by the larger cost overrun in Algeria.
SANJEEV BAHL | NUMIS SECURITIES
We have placed our recommendation under review as we revisit both our 2012 and 2013 earnings forecasts. Overall, significant uncertainty remains for this year’s earnings. We expect the profit warning and earnings uncertainty to lead to a de-rating whilst legacy issues are fully resolved.
CRAIG HOWIE | SHORE CAPITAL
The statement from Cape does not make for very happy reading. Overall, the statement will do nothing to instill confidence amongst investors, who would have been hoping to see evidence of progress on the resolution of various operational issues.