Companies: CIU   

Insulation and scaffolding products supplier Cape came down to Aim following a turbulent period in which the group endured major a restructuring, board changes and a lengthy legal case in South Africa (which it paid £20m to settle). Investors who endured all of this were finally cheered late last year by news that the remaining group operations (it sold its Cape Calsill arm for £9m) are now profitable and cash generative. Cape has also secured bank credit, which gives it a degree of stability after a sustained period of uncertainty. The reason for the support of the bankers - and the prolonged interest from 29.9% investor Montpellier, the Aim-listed construction and investment mini-conglomerate - is that Cape is still asset rich. Its NAV was £18.5m at the end of last June, with £35.7m of tangible assets and £67.3m of debtor payments on its balance sheet balanced by nearly £90m of short-term debt. Now the accounts are repaired, attention turns to what major investor Montpellier will do with the business. A take-over is far from the bounds of possibility, being made easier by the move to Aim. Montpellier managing director Paul Sellars' also doubles as Cape's chairman.