SHARES in fire protection products company Cape fell 13% after it announced that full-year results would be lower than expected because of continuing losses.
The firm blamed some of its difficulties on the strength of sterling, as exports account for more than 50% of turnover in its manufacturing division. The division is expected to report a loss in the second half of the year.
The board began to reorganise its manufacturing operation after reporting an interim loss of £1.1m last September. Restructuring is expected to cost £9m and an extra £7m has been set aside to cover legal costs over asbestos litigation in South Africa.
Another problem is that one its insurers, Iron Trades Holdings, is in financial difficulties. It announced this week that it is seeking an arrangement with creditors.
